Uganda’s economy is poised to return to double-digit growth for the first time in nearly three decades, Finance Minister Henry Musasizi has announced, projecting a sharp expansion driven by oil production, rising investment inflows, and improved macroeconomic stability.
Presenting the national budget for the Financial Year 2026/27, Musasizi said growth is expected to accelerate to 10.2 percent in FY 2026/27, marking a historic milestone since the economic reforms of the 1990s.
“With commercial oil production commencing later this calendar year, growth is projected to accelerate to 10.2 percent in FY 2026/27. This will mark Uganda’s first return to double-digit growth since the reforms of the 1990s,” Musasizi told Parliament.
He said the outlook reflects sustained government investment in infrastructure, security, wealth creation and productive sectors, which he credited for stabilising the economy and attracting investment.
“This performance confirms that our strategy of investing in security, infrastructure, wealth creation, and the productive sectors is delivering results,” he added.
Musasizi projected that Uganda’s gross domestic product (GDP) will rise to USD 69.3 billion (Shs 250.4 trillion) by June 2026, with GDP per capita expected to reach USD 1,420 (about Shs 5.1 million).
In purchasing power parity terms, the economy is estimated at USD 197.1 billion, reflecting deeper structural expansion.
The minister noted that inflation has remained under control, averaging 3.8 percent in FY 2025/26, compared to 3.5 percent the previous year.
“Low inflation protects household incomes, supports business planning and strengthens investor confidence,” Musasizi said, adding that price stability remains central to government policy.
Musasizi also highlighted strong investor sentiment, noting that Foreign Direct Investment (FDI) reached USD 3.2 billion in the 12 months to March 2026.
He pointed to growing interest in Uganda’s startup and SME ecosystem, with Kampala-based startups attracting USD 30 million in 2025, up from just USD 4 million the previous year.
Remittances from Ugandans abroad also surged to USD 2.8 billion, nearly a billion-dollar increase within a year, reinforcing their role in supporting household incomes and foreign exchange stability.
Tourism earnings rose to USD 1.86 billion in 2025, surpassing pre-pandemic levels of USD 1.4 billion in 2018/19, and recovering strongly from the 2020 low of USD 562 million.
Musasizi said government will continue investing in tourism infrastructure, security, and economic diplomacy to sustain the sector’s recovery and growth.
