President Museveni has projected that Uganda’s economy will grow to nearly $74 billion by June 2027, citing industrialisation, value addition, oil production and the expansion of new economic sectors as key drivers of growth.
The President said the economy had grown from approximately $3.9 billion in 1986 to $69.3 billion, outlining the progress made during his government’s tenure while calling for increased production, household wealth creation and investment in knowledge-based industries.
Speaking during Uganda’s 64th Independence Day celebrations on October 9, 2026, held virtually from State House, Entebbe, Museveni said the country’s next phase of transformation would depend on strengthening local industries, creating jobs and ensuring Ugandans earn more from their agricultural products.
The celebrations were held under the theme: “Embracing Our Sovereignty with Hope and Visionary Leadership.”
Museveni said his government had pursued five phases of economic transformation since 1986: minimum recovery, expansion, diversification, value addition and the development of a knowledge-based economy.
He said the initial focus was on restoring sectors that had collapsed, followed by efforts to expand production, diversify economic activities and develop industries capable of producing higher-value goods.
The President cited the recovery of tea production, which he said had increased from three million kilogrammes to 60 million kilogrammes, while coffee production had risen from approximately three million bags to nine million bags.
He said the government had also promoted commercial agriculture to enable households to earn income from products such as milk, fruits, maize, beans, bananas, millet and fish, which he said had not been fully exploited as commercial enterprises.
Museveni argued that expanding agricultural production and connecting farmers to markets would create employment, increase household incomes and provide raw materials for domestic industries.
Value addition
The President identified value addition as a major priority in Uganda’s pursuit of economic independence, saying the country needed to process more of its raw materials locally instead of exporting them in their unprocessed form.
He said Uganda had made progress in processing cotton, milk, bananas, coffee and fruits but needed to expand such activities to generate more income and employment.
Using coffee as an example, Museveni said a kilogramme of raw coffee could fetch approximately $2, while processed coffee products could command significantly higher prices depending on the product and market.
He said countries and companies involved in roasting, grinding, packaging and marketing often capture a substantial share of the value generated along global commodity supply chains.
The President said industrial processing would help Uganda retain more wealth, create jobs and strengthen its capacity to finance its own development.
He also highlighted the growing contribution of science, technology and innovation, citing electric vehicle manufacturing, pharmaceuticals and computer-related products as areas in which the country was seeking to build capacity.
Museveni said Uganda’s long-term economic prospects would depend on developing technological expertise, equipping people with relevant skills and supporting industries that produce higher-value goods.
Transport infrastructure
The President also identified transport infrastructure as a key area requiring improvement, saying inefficiencies in the movement of goods increased the cost of doing business.
He estimated that weaknesses in the transport system cost Uganda approximately $1 billion annually.
Museveni said the government was working with Kenya on petroleum pipeline infrastructure to reduce the movement of fuel tankers by road.
He also pointed to plans to expand railway transport through the rehabilitation of the existing metre-gauge railway and development of the Standard Gauge Railway, alongside improvements in water transport.
The planned railway connections to western Uganda and the mineral-rich Karamoja sub-region, he said, would support the movement of goods and facilitate the exploitation of resources, including marble, limestone and gold.
He said an integrated transport system would reduce logistics costs and make locally produced goods more competitive in domestic and international markets.
Household wealth creation
Museveni said economic growth must translate into improved household incomes, urging leaders to ensure more Ugandans participate in commercial economic activities.
He said Operation Wealth Creation had increased the proportion of Ugandans participating in the money economy from 32 per cent to 61 per cent, while the Parish Development Model (PDM) had raised the figure to 67 per cent.
The President challenged political, religious and cultural leaders to identify households that remained outside the money economy and help them establish sustainable sources of income.
He said the government would continue supporting households through coffee and fruit seedlings, dairy production, pasture development, piggery, poultry and fish farming.
Museveni said the interventions were intended to bring more households into productive economic activity, stressing that poverty reduction required families to acquire productive assets rather than relying solely on national economic growth.
He cited Kisozi, where he said approximately 90 per cent of households were now participating in the money economy, compared with widespread poverty he had observed during a visit in 1990.
The President also recounted the experience of Deziranta Tumusiime from Rubirizi, whom he said had acquired productive assets after benefiting from the Parish Development Model.
Economic independence
Vice President Jessica Alupo congratulated Ugandans on the 64th anniversary of independence, commending the country’s progress in stability, peace, unity and development.
She also praised the government’s 10-fold growth strategy, which identifies priority sectors for expanding economic activity and improving household incomes.
Alupo pledged continued support from women leaders for the government’s development agenda, particularly efforts to promote women’s empowerment and inclusive development.
Minister for the Presidency Milly Babirye Babalanda said Uganda’s independence should remind citizens of the sacrifices made by those who fought for freedom and the responsibility to safeguard the country’s sovereignty.
She paid tribute to historical figures, including Omukama Kabalega of Bunyoro and Kabaka Mwanga, alongside other patriots who contributed to the struggle for independence.
Babalanda said political independence was only the first stage of liberation, adding that economic and strategic independence remained central to Uganda’s development ambitions.
During the celebrations, Museveni was decorated with the Order of the Commander-in-Chief (Uganda Prisons Service Medal) in recognition of his leadership and contribution to peace, security and the development of the Uganda Prisons Service.
At least 19 other people, including six women, were also decorated in recognition of their contributions to the country.
