{UAH} Uganda’s economy to grow by 6% - IMF boss

http://www.monitor.co.ug/Business/Uganda-s-economy-to-grow-by-6----IMF-boss/688322-3785796-3gwqp1/index.html

What brings you to Uganda and what is your message to the country?
Let me start by thanking you for this interview with Daily Monitor. This is my first visit to Uganda and I welcome the opportunity to see firsthand the progress that Uganda is making and to focus on the challenges ahead. 

I look forward to engaging with President Yoweri Museveni, your policymakers, business leaders, legislators, women leaders, and representatives of civil society. I want to share the IMF's views, but first and foremost, I am here to listen.

There are several important issues I wish to discuss during my visit. What is Uganda's growth strategy? How can it address domestic issues such as poverty and inequality?

There is also the challenge of having to carefully balance spending on infrastructure and on social areas, such as health and education. 
These are issues that are also faced by other countries in the region and, indeed, globally.

What is the status of IMF relations with Uganda?
Uganda has had Policy Support Instrument (PSI) programmes with the IMF since 2006. 

These programmes aim to support low-income countries that do not need IMF financing, but want close engagement with us via monitoring and policy support.

Uganda has made significant progress in a number of areas under the current programme.

For example, the tax-to-GDP ratio has increased by 2 per cent of GDP over the last three years along with improvements in the collection and administration of taxes.

This helps pay for the increased investment in infrastructure and will contribute to keeping public debt at a manageable level. 
Moreover, the programme has helped to provide a framework for economic policies and reforms that can boost medium-term growth.
The PSI also integrates IMF capacity development and training in support of these efforts. 

This includes visits by teams from IMF headquarters and our Africa Regional Technical Assistance Centre in Dar es Salaam (East AFRITAC), as well as participation by Ugandan officials in training courses in Washington and at our Africa Training Institute in Mauritius.

Some of the areas in which we have provided this type of support include public finance management and inflation targeting to help guide monetary policy.

What is the IMF's growth outlook for Uganda?
Uganda is a vibrant and diverse economy. It has experienced impressive growth and poverty reduction over the last three decades. 
Robust and finely balanced macroeconomic policies have enhanced the collection of more domestic revenue, kept inflation in check, and facilitated more spending on key sectors such as energy and transport. 

We forecast growth will be about 5 per cent in 2017, broadly similar to the last few years. 

Over the medium term, we expect growth to accelerate to over 6 per cent, as the ongoing infrastructure developments bear fruit, investments in the oil sector pick up, and integration in the East African Community creates new opportunities. 

It is essential that there be sufficient money allocated for high-quality social spending so that Uganda can make further progress on reducing poverty, raising living standards for all its citizens, and creating more jobs for its young people. This will be crucial in the country's efforts to achieving the Sustainable Development Goals.

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