Uganda’s economy is projected to grow by at least 7.0 percent in the 2025/26 financial year, and to achieve double-digit growth with the commencement of oil and gas production, according to Finance Minister Matia Kasaija. He made the announcement during the presentation of the Shs 72 trillion national budget for FY 2025/26.
The economy is expected to expand to Shs 254.2 trillion (USD 66.1 billion) in FY 2025/26, resulting in an increase in GDP per capita to USD 1,324, up from USD 1,263 estimated for the current financial year ending June 30, 2025.
Over the past two years, Uganda’s economy has demonstrated increased resilience to both domestic and external shocks. It is estimated to grow by 6.3 percent in FY 2024/25, following strong third-quarter growth of 8.6 percent. In FY 2023/24, the economy recorded a growth rate of 6.1 percent.
In nominal terms, the size of the economy is projected at Shs 226.3 trillion (USD 61.3 billion) for FY 2024/25, up from Shs 203.7 trillion (USD 53.9 billion) in FY 2023/24. According to the Minister, this is equivalent to USD 174.2 billion in Purchasing Power Parity (PPP) terms.
This broad-based growth has been supported by improvements across sectors such as agriculture, industry, and services—including ICT—driven by continued government interventions, and sound fiscal and monetary policies that have fostered private sector investment.
“The impressive economic performance has been driven by His Excellency the President’s commitment and deliberate investment in wealth creation initiatives,” Kasaija said.
Over the past decade, the government has invested over Shs 9 trillion in key wealth creation programs. These include: Government has invested over Shs 9 trillion in key wealth creation initiatives over the last 10 years. These include: Uganda Development Bank (Shs 1.45 trillion), the Parish Development Model (Shs 3.3 trillion by end of FY 2024/25), Emyooga (Shs 553 billion), the Youth Livelihood Programme (Shs 207.95 billion)and the Small Business Recovery Fund, (Shs 100 billion).
Others are the Agricultural Credit Facility (Shs 495 billion), the Youth Venture Capital Fund (Shs 12.5 billion), Uganda Women Entrepreneurship Programme (Shs 168 billion), the INVITE Project (Shs 800 billion), the GROW Project (Shs 824 billion), and Uganda Development Corporation (Shs 1.2 trillion), among others.
