The government of Uganda has been advised by the International Monetary Fund’s (IMF) to desist from ignoring other sectors of the economy in favor of the oil sector to enable proper growth and development of the economy.
Uganda recently discovered oil in the western Uganda Abertaine region worth billions of barrels. Commercial exploitation is expected to start in early 2011.
Thomas Richardson
However, analysts are still skeptical on whether Uganda oil wealth will contribute to the growth and development of the country because of rampant corruption by the Uganda government circles.
While addressing Uganda Members of Parliament who sit on the parliamentary committee on National Economy on Wednesday (30th June 2010), the International Monetary Fund’s (IMF) Senior Resident Representative, Thomas Richardson expressed worry over the growing trend by oil rich countries to neglect other sectors of the economy like agriculture, yet they contribute significantly to a country’s Gross Domestic Product.
Richardson says that if the oil revenues are to help the country develop, they should be used to fund other sectors of the economy like agriculture.
Agriculture remains Uganda’s biggest sector of the economy employing over 80 percent of the population. Oil is likely to overtake agriculture when commercial production starts.
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Walakira Nyanzi, Ultimate Media