The Minister of Finance, Matia Kasaija, has called on East African nations to prioritize self-reliance and economic independence, reducing reliance on foreign aid.
Speaking at the East African Development Bank (EADB) partners’ engagement breakfast in Kampala, Kasaija emphasized the need for regional collaboration to drive sustainable growth.
“We must strengthen our position regionally and globally. Our development cannot rely on foreign support,” he stated.
He highlighted regional integration as a key driver of economic progress and praised EADB for supporting infrastructure and agriculture two critical sectors for stability and growth.
Kasaija urged governments and entrepreneurs to work together on transformative initiatives and address the rising youth unemployment crisis.
“Half of the one million boda-boda riders are graduates,” he noted, acknowledging that while self-employment is commendable, it is not a long-term solution.
He called on the private sector to create sustainable job opportunities and expressed frustration that some leaders propose survival jobs instead of meaningful employment.
“We need to ensure that the youth are engaged in careers that foster long-term economic growth,” he asserted.
Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, emphasized industrialization as Uganda’s economic transformation strategy.
“We should accelerate growth with transformation in four key areas: agro-industrialization, tourism, mineral-based industrialization, and science, technology, and innovation, including digital transformation,” he said.
Ggoobi noted that Uganda’s tourism sector earns $1.5 billion annually, with a target of $50 billion by 2040 through private sector investment.
He also stressed the need for more local manufacturing to create jobs and boost exports.
Encouraging EADB to take a more visible role, he revealed ongoing discussions to increase the bank’s capitalization, enabling it to mobilize additional international funding.
“Uganda and other East African nations must inject more funds into EADB to strengthen its financial capacity,” Ggoobi urged.
He dismissed concerns about Uganda’s economic stability, referencing past doubts over international funding.
“A year ago, the World Bank doubted Uganda’s ability to secure new projects, yet our economy has grown faster. Uganda is here to stay,” he affirmed.
The forum brought together policymakers, financial experts, and private sector leaders to explore EADB’s role in economic transformation.
EADB Acting Director General, Benard Mono, emphasized the importance of SMEs, which account for 1.1 million businesses in Uganda.
“SMEs drive innovation and job creation. This year, we aim to support 10,000 more SMEs in Uganda and East Africa through strategic partnerships,” he said.
Under EADB’s 2024-2028 Strategic Plan, the bank will focus on industrialization, infrastructure, agriculture, social services, and climate change initiatives.
Mono urged banks to educate investors on shifting focus from trading and real estate to manufacturing, arguing that capital spent on malls could yield better returns in industry.
“Manufacturing creates more jobs than malls, which employ only a handful for rent collection and maintenance,” he noted.
He also criticized banks’ risk-averse lending approach, arguing they should support long-term economic projects instead of seeking immediate profits.
“Banks must be willing to embrace risk to foster industries that generate jobs and economic stability,” Mono said.
He praised banks for adapting during the Covid-19 pandemic and urged them to maintain that flexibility in supporting manufacturing investments.
