Ugandan won't introduce fuel subsidies, President Yoweri Museveni said on Wednesday, as he gave a bullish outlook of the country's economy in a state of the nation address.
"I cannot subsidise fuel so that people can drive more to nightclubs, if they want to go to the night clubs they go there at their own cost," he said.
He said the country’s economy was resilient and its investment climate “remains competitive in the region and beyond”.
The president however signalled that subsidies could be offered on some goods if the country was hit by sanctions by Western countries.
Museveni has drawn backlash from Western envoys after signing into law an anti-homosexuality that imposes the death penalty for some homosexual acts. US President Joe Biden has described the law as a "tragic violation of universal human rights".
Museveni said subsidies would only be considered if the country was affected by "non- economic factors".
The Russia-Ukraine conflict has interrupted supply of food and fertilizers globally and African countries have been affected.
Museveni said his government was considering “either get a solution to stop the Western countries from interfering with our supply of fertilizers or we may have to look at subsidizing at least fertilizers”.
He said "mishandling of investors" and corruption remain a challenge to the economy.
