The Minister of State for General Duties, Henry Musasizi, has presented an optimistic economic outlook to Parliament, highlighting strong growth, easing inflation, and progress toward oil production.
Appearing before the Finance Committee alongside Under Secretary and Accounting Officer Dr Sengonzi Damulira and a technical team on Tuesday, Minister Musasizi delivered the Ministerial Policy Statement for the Ministry of Finance, Planning and Economic Development (MoFPED) for the 2026/27 financial year.
He reported that Uganda’s economy expanded by 8.5 percent in the second quarter of FY 2025/26, a notable increase from 5.4 percent recorded during the same period last financial year.
The growth, he said, reflects effective economic management driven by strong demand and sustained investments in key productive sectors such as ICT, construction, and machinery.
Musasizi also pointed to improved macroeconomic stability, with inflation declining to 2.9 percent in February 2026 from 3.2 percent in January.
He attributed this to prudent fiscal and monetary coordination, as well as improved food supply across the country.
In a further boost, Uganda recorded a merchandise trade surplus of 147.26 million US dollars in January 2026, marking a significant turnaround from previous trade deficits.
On revenue performance, the Minister revealed that government collected Shs16.48 trillion in the second quarter, 94.09 percent of the Shs17.51 trillion target, representing an 8.05 percent increase compared to the same period in the previous financial year.
Musasizi also updated the committee on preparations for Uganda’s oil sector, noting that the East African Crude Oil Pipeline (EACOP) project is now 80 percent complete, while engineering studies for the refinery are ongoing.
Looking ahead, the government expects to generate about Shs2.2 trillion from oil revenues in the 2026/27 financial year, with Shs1.4 trillion earmarked to support the national budget.
The presentation signals growing confidence in Uganda’s economic trajectory, underpinned by stable macroeconomic fundamentals and the anticipated contribution of the oil and gas sector.
