KAMPALA, Uganda
After nearly two decades of delays, Uganda is on the verge of beginning the production and export of crude oil next year from its western oil fields.
The International Monetary
Fund (IMF) has forecast that Uganda's economic growth will soar to double
digits with the commencement of commercial crude oil production in the
upcoming financial year. According to the IMF, the initiation of oil production
is expected to result in sustainable improvements in both the fiscal and
current account balances.
According to an IMF report
released late Wednesday, Uganda's economy is anticipated to grow by 10.8% in
the 2025/2026 fiscal year, starting in July, a significant increase from the
previously expected growth rate of 6.2%.
Commercial oil reserves were first identified in 2006, but
various challenges, including disagreements over development strategies and
inadequate infrastructure, have postponed production.
At its peak, Uganda is
projected to produce 240,000 barrels of oil per day from its estimated 6.5
billion barrels of reserves.
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