Uganda’s economy grew by 6.3 percent in the 2024/25 financial year, expanding to Shs 226.3 trillion (USD 61.3 billion), up from Shs 203.7 trillion (USD 53.9 billion) the previous year, according to Finance Minister Matia Kasaija.
Addressing the state of the economy at Uganda Media Center in Kampala on Tuesday, Minister Kasaija said GDP per capita rose from USD 1,159 in FY2023/24 to USD 1,263 in FY2024/25, with growth recorded across agriculture, industry, and services, including ICT.
He attributed the performance to government wealth creation programs such as the Parish Development Model, Emyooga, the Agricultural Credit Facility, and small business recovery funds, alongside coordinated fiscal and monetary policies.
Headline inflation eased to 3.8 percent in July 2025, down from 3.9 percent in June, driven by lower food and fuel prices. The Central Bank maintained the benchmark interest rate at 9.75 percent for the tenth consecutive month to contain inflation within the 5 percent target.
The Ugandan shilling appreciated by 0.5 percent in July to an average of Shs 3,586 per US dollar, supported by stronger remittance inflows, coffee export earnings, and foreign investor activity. The IMF ranked the shilling Africa’s most stable currency.
Merchandise exports grew by 64.3 percent to USD 1.15 billion in the year ending June 2025, while imports increased by 50.7 percent to USD 1.43 billion. Coffee’s share of exports dropped to 20.9 percent, down from 75.6 percent in 1995, as gold, cocoa, and manufactured products gained ground.
Tourism earnings rose to USD 1.52 billion, up from USD 1.36 billion the previous year, while foreign direct investment climbed to USD 3.3 billion, driven largely by oil and gas projects. Uganda also received USD 1.4 billion in remittances in 2024.
Domestic revenues exceeded targets in FY2024/25, reaching Shs 32.08 trillion against a projected Shs 31.98 trillion. Grants also boosted collections at the start of FY2025/26.
On social indicators, Uganda graduated to lower-middle-income status in 2024. Life expectancy rose from 63.7 years to 68.9 years, while poverty levels fell from 20.3 percent in FY2019/20 to 16.1 percent in FY2023/24. The Gini coefficient, a measure of income inequality, declined from 0.413 to 0.382.
Kasaija projected that the economy will grow by at least 7 percent in FY2025/26 and reach double-digit growth once oil production begins.
“Over the next 15 years, Uganda expects to expand its economy to USD 500 billion under the Ten-fold Growth Strategy, focusing on agro-industrialization, tourism, mineral-based industries, and science, technology, and innovation”. He said.
“Uganda’s economy remains robust, supported by stable inflation, a stronger shilling, and growing private sector activity,” Kasaija said. “Our Ten-fold Growth Strategy will propel us from a USD 61 billion to a USD 500 billion economy in the next fifteen years.”
The Source Reports.
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