(Ecofin Agency) - According to the Ministry of Finance, eased inflationary pressures will contribute to the achievement of the 5.3 percent growth target for the 2022/2023 fiscal year.  

Uganda's economy grew by 6.8% in the first half of the 2022/23 (July 1-June 30) fiscal year, according to a release published by the Ministry of Finance today.

The performance is up from the 3.7% achieved during the same period in the previous fiscal year. It was mainly driven by the services, agriculture, forestry, and fisheries sectors, the same source said.

The Ministry of Finance also said the easing of inflationary pressures puts Uganda on track to meet the 5.3 percent growth target for the 2022/2023 fiscal year.

The Ugandan government expects the country's GDP to grow by 6% in 2024. It also expects its economy to grow by more than 7% a year from 2025 onwards when its oil fields located in the West will start production.  

In January, the country launched a program to drill production wells in the Kingfisher oil field, located in the Lake Albert region (west). The field, operated by the Chinese company CNOOC, is expected to begin production in 2025.

The potential of Lake Albert, which is a natural border between Uganda and the Democratic Republic of Congo,  is estimated at 6.5 billion barrels of crude oil, including  1.4 billion barrels of recoverable reserves.