Museveni Tells IMF Director Uganda’s Economy Will Grow Even Faster With Value Addition

State House meeting covers tax base expansion, private sector leadership, and the cost of doing business as Uganda sustains seven percent annual growth

President Yoweri Kaguta Museveni has hosted Abebe Aemro Selassie, Director of the African Department at the International Monetary Fund, at State House Entebbe, with discussions centering on Uganda’s economic trajectory and the strategies needed to broaden the country’s tax base and accelerate transformation.

The meeting reflected a convergence of confidence from both sides — Museveni bullish on Uganda’s growth potential, and the IMF offering recognition of the country’s sustained economic record while encouraging further reform.

Seven Percent Growth and the Case for Value Addition

Museveni briefed Selassie on the current state of Uganda’s economy, expressing confidence in its direction and highlighting an annual growth rate of approximately seven percent as a foundation for even greater expansion. The President identified value addition as the key to unlocking the next phase of economic development — processing and manufacturing Uganda’s raw agricultural and natural resource output rather than exporting it in primary form.

“As the country grows at seven percent, it will grow even more with value addition,” he said, framing the shift as both an economic opportunity and a strategic imperative.

Private Sector Must Lead, Not the State

Museveni was unambiguous in reiterating Uganda’s long-standing position on the role of government in the economy. He pushed back against models built around state-owned enterprises, insisting that the private sector must remain the primary engine of wealth creation.

“Some people said parastatals or government companies should lead the economy, but we rejected that. We said the main economy should be in the hands of the private sector,” he noted, calling on the IMF to focus its support on measures that lower the cost of doing business rather than expanding the state’s economic footprint.

Reducing Production Costs Is Central to Competitiveness

The President outlined the specific cost pressures that most constrain Uganda’s productive sectors — electricity, internet connectivity, fuel including jet fuel, and the absence of affordable railway and pipeline infrastructure. Addressing these, he argued, is the most direct route to making manufacturing and agriculture competitive and attractive to private investment.

He also highlighted the Uganda Development Bank’s role in providing patient, affordable capital to manufacturers and farmers who cannot access commercial financing on viable terms.

Security as a Prerequisite for Development

In a characteristic aside, Museveni linked economic development directly to defence capacity, arguing that African nations undermine their own growth by neglecting military strength. “Without a strong army, there is no development,” he said, positioning security infrastructure as a non-negotiable foundation for sustained economic progress.

IMF Recognises Uganda’s Consistency

Selassie responded warmly to the briefing, commending Uganda as one of a relatively small number of African countries to have maintained consistent economic growth over time. He encouraged continued reforms aimed at deepening domestic revenue mobilisation — a priority that aligns with Uganda’s own interest in reducing aid dependency and widening its tax base to fund development priorities.

The meeting reaffirmed the ongoing partnership between Uganda and the IMF on macroeconomic stability, with both sides signalling continued engagement on the reforms needed to sustain and accelerate the country’s growth trajectory.