This is the conclusion of Ms. Martine Guerguil, IMF mission chief for Uganda. She, in a statement said in Kampala that

“The authorities are taking steps to rekindle growth and build up infrastructure, particularly roads. Higher public expenditure will help boost activity and improve competitiveness. But it is important to make sure that these resources are well spent. The authorities have committed to strengthen budget controls and enhance capacity so as to ensure efficiency in spending. We forecast growth will stay below 6 percent this fiscal year but will gradually rebound to around 7 percent in the coming years.

“Uganda needs to boost non-oil revenue and bolster its institutional and financial capacities to avoid the “oil curse”. Oil will bring substantial revenue, but only for a limited number of years. Channeling these resources in a careful and transparent manner is key to maintain macroeconomic stability and raise living standards in a durable way.

“In an oil-exporting economy, fiscal policy plays an even more central role in maintaining macroeconomic stability. It is thus all the more important to start putting in place processes that prevent the inappropriate use of public resources and raise Uganda's ability to invest in itself. A deeper, broader financial sector is also essential to intermediate efficiently a much larger volume of funds and increase the effectiveness of monetary policy. The IMF-supported program includes actions both to strengthen public financial management and to deepen financial markets, with a view to preparing the ground for a smooth and successful transition to Uganda's petroleum era.

“It is expected that the review of Uganda's performance under the current PSI and the proposed policy program for a new PSI will be considered by the IMF's Executive Board in early May.”