The Ministry of Finance has reported a sharp rise in mobile money usage, with both the volume and value of transactions surging over the past year, even as other economic indicators paint a mixed picture.
According to the Microeconomic Indicators and Developments (MIND) July 2025 Edition, the number of mobile money transactions grew by 19.9%, from 1.0 billion in March 2024 to 1.2 billion in March 2025.
The value of mobile money transactions jumped by 23.9%, rising from Ushs 33.9 trillion to Ushs 42 trillion over the same period.
While digital financial activity expanded, the report highlighted a slight decline in formal employment. Workers registered under the PAYE system fell marginally from 890,111 in June 2025 to 889,422 in July 2025.
Similarly, the number of migrant workers recorded by the Immigration Department dropped by 7.3%, from 3,213 to 2,980 during the same period.
Living standards and inflation trends also showed mixed results. Food and Non-Alcoholic Beverages inflation fell by 0.1% in July 2025, a slower decline compared to the 0.7% decrease in June. Energy, Fuel and Utilities (EFU) inflation eased by 0.3%, reversing a 0.8% increase the previous month.
Meanwhile, household health expenditures remained uneven nationwide, averaging Ushs 32,000 per month, ranging from Ushs 70,000 in Kampala to Ushs 17,000 in West Nile.
On the environmental front, air quality in Kampala deteriorated significantly, with particulate matter levels nearly doubling from 28.75µg/m³ in June to 54.70µg/m³ in July. Natural disasters during June–July 2025 displaced nearly 15,000 people, destroyed 516 houses, and left thousands more affected across the country.
In the markets and regulation sector, the Uganda Securities Exchange (USE) All-Share Index rose by 4.6%, driven by strong performance from MTN Uganda and UMEME. New business registrations also increased sharply by 32.7%, from 3,825 in June 2025 to 5,074 in July 2025.
However, Uganda’s trade deficit widened by 146.3%, from US$110.8 million in May to US$272.9 million in June, mainly due to rising import bills for petroleum and mineral products.
To address financing challenges, the Government announced a series of reforms in the capital markets sector, including new licensing, conduct, offer, and corporate governance regulations, alongside updated listing rules for the Uganda Securities Exchange.
These are intended to deepen capital markets, boost investor confidence, and expand access to long-term financing.
Looking ahead, the Ministry of Finance projects a brighter near-term outlook, citing reduced inflationary pressures and resilient domestic activity as key drivers of stability.
