Uganda’s economy is estimated to expand by 5.2% in the fiscal year 2017/2018, despite a previous drop to 5% in 2016/2017, thanks to foreign and domestic investment in infrastructure in the oil industry, according to the World Bank, reported Reuters.
The World Bank lowered its 2016/2017 forecast for Uganda to 5% due to concerns about non-performing loans, insecurity of being a neighbor to South Sudan, and the impact on tourism and the poultry industry from the discovery of bird flu in the country.
The World Bank further said that the award of oil production and exploration licenses in 2016 “could accelerate foreign direct investment (FDI) inflows, infrastructure development, employment, and the development of local industries.”
Accordingly, as SABC News wrote, the East African nation aims to complete construction of a pipeline through neighboring Tanzania to start exporting oil in 2020. Uganda has oil reserves of around 6.5b barrels, of which up to 1.7b barrels are estimated to be recoverable. Ugandan fields were discovered a decade ago, but disputes over tax and development strategy delayed production.