Uganda’s economy is on the rise, with the Finance Ministry revealing positive signs across multiple sectors. The country’s GDP grew by 6.7% in Q1 and 5.3% in Q2 of FY 2024/25, driven by increased manufacturing activity, food production, wholesale trade, and transport activities. Here are some key highlights.
GDP Growth: Uganda’s economy is projected to reach 6.0% growth in FY24, up from 5.3% in FY23, despite global economic instability.
Inflation; Headline inflation declined to 3.2% in FY24 from 8.8% in FY23, due to declining food prices and monetary policy tightening.eMkvenue Collection: Domestic revenue mobilization reached Shs 22.379 trillion by March 2025, with a shortfall of Shs 136.64 billion against the target.
Foreiu Direct Investment: FDI reached $2.3 billion in the first nine months of FY24, driven by an oil-related construction boom.
Exports!Total exports grew by 12.1% to USD 2.17 billion in Q2 FY 2024/25, while remittances increased to USD 355.60 million.
Currency Performance: The Uganda shilling gained 6.1% in 2024, making it Africa’s best-performing currency.
The government’s budget transparency initiatives have led to the release of Shs 19.79 trillion for the fourth quarter of FY 2024/25, representing 25.64% of the revised budget. The funds will cater to various obligations, including:
Wage and Non-Wage Recurrent Expenditure: Shs 8.903 trillion
External Financing: Shs 2.677 trillion
Debt and Treasury Operations: Shs 8.126 trillion
Local Revenue: Shs 83.85 billion
Overall, Uganda’s economy is showing promising signs of growth, driven by various sectors and government initiatives.