President Yoweri Museveni has revealed that by 2020, Uganda will start pumping out its own oil.
He was speaking during the reading of the National Budget – FY 2016/17 at Serena conference centre in Kampala Wednesday.
“Even at the low price of US$50 per barrel, if we shall be pumping 30,000 barrels per day for the refinery and 170,000 barrels per day for the pipeline and the total will be 200,000 barrels per day, that will give us an additional income of US$3 billions per year.”
He said the Government portion of that money will be US$2.1billions which is 70%.
“With that additional money, we shall be able to easily deal with the issue of funding innovation by our scientists, capitalizing the Uganda Development Bank (UDB) so as to support the manufacturing activities as well as some aspects of agriculture, capitalize the National Housing Finance Bank so as to enable them to fund low cost housing for the people, fund some elements of the infrastructure, etc. etc.”
He added: “We are, however, not going to wait for the oil money to develop our country. Using our non-oil revenues, we are already doing commendable work.”
Museveni noted that he was not satisfied with the 4.6% rate of growth that Uganda achieved this financial year.
“Even the rate of 7% is not satisfactory to meet. We must go to double digits rates of growth in order to transform our society rapidly.”
Since 2006, government has been insisting on prioritisation in the use of the budget resources.
He said the logic of the new budget is, on the one hand, to continue expanding the base of the modern economy so as to lower costs of doing business in Uganda and, on the other hand, to attract more and more investors in manufacturing, services and ICT.
“These operators must be assisted to come in the economy easily and quickly.”