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Boosting incomes under the F-ATMS strategy
Digital transformation, research, mechanisation, and innovation can improve productivity, reduce costs, expand market access, and enhance Uganda’s competitiveness in regional and global markets. Investment in technology-driven enterprises will be essential in positioning Uganda for future economic growth.
Boosting incomes under the F-ATMS strategy
By: Admin ., Journalist @New Vision
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OPINION
By Irene Birungi Mugisha
As Uganda progresses toward its national aspiration of attaining middle-income status, the central policy question remains clear: how do we sustainably increase household incomes and improve the quality of life for Ugandans? The answer lies in a coordinated and deliberate implementation of a “Uganda First” economic strategy, anchored in strong public-private collaboration and aligned to the Government’s FY 2026/27 budget priorities under the FATMS framework – full monetisation, agro-industrialisation, tourism development, minerals development, and science, technology & innovation (STI).
This position is consistent with the policy direction championed to recognise the private sector as the primary engine of job creation, productivity, innovation, and economic transformation. A vibrant private sector, supported by enabling government policy and strategic public investments, remains central to increasing household incomes, driving consumption, expanding production, and sustaining economic growth.
Uganda’s economic structure is largely driven by the private sector, which contributes over 80 per cent of national output and provides the majority of employment opportunities, particularly through micro, small and medium enterprises (MSMEs). The informal sector also remains a significant source of livelihoods for millions of Ugandans. However, unlocking the full potential of the private sector requires structured engagement between government and business leaders to address bottlenecks in production, financing, infrastructure, markets, skills, and value addition.
The Presidential CEO Forum, working closely with the Government through the Office of the Prime Minister and various ministries, departments and agencies, continues to amplify that national development cannot be achieved through infrastructure investment alone. Roads, electricity, and industrial parks are important enablers, but they must be complemented by deliberate coordination of economic actors to stimulate industrialisation, expand exports, deepen local content participation and strengthen domestic production capacity.
As articulated in successive State of the Nation Addresses, President Yoweri Kaguta Museveni has consistently underscored the need to transform Uganda from a subsistence economy into a modern money economy where every household participates in productive economic activity. His long-standing emphasis on wealth creation, value addition, and market-oriented production aligns directly with the ATMS strategy and the Uganda First economic agenda.
The FY 2026/27 budget presents a unique opportunity to accelerate this transformation. Agro-industrialisation must focus on strengthening farm-to-factory systems, particularly in strategic commodities such as coffee, dairy, livestock, cassava, sugar, cotton, cocoa, and fisheries. Uganda’s comparative advantage remains in agriculture, and increasing value addition within the country will significantly enhance farmer incomes while creating jobs along the entire value chain.
At the 6th Bi-Annual Presidential CEO Forum engagement, it was evident that tourism development presents another powerful avenue for household income growth. Uganda’s unique natural attractions, including mountain gorillas, national parks, cultural heritage, and adventure tourism opportunities, position the country as one of Africa’s most attractive destinations. Increased investment in tourism infrastructure, destination marketing, hospitality skills, and product diversification can substantially increase foreign exchange earnings and create thousands of jobs, particularly for youth and women.
Uganda’s economic structure is largely driven by the private sector, which contributes over 80 per cent of national output and provides the majority of employment opportunities, particularly through micro, small and medium enterprises (MSMEs). The informal sector also remains a significant source of livelihoods for millions of Ugandans. However, unlocking the full potential of the private sector requires structured engagement between government and business leaders to address bottlenecks in production, financing, infrastructure, markets, skills, and value addition.
The Presidential CEO Forum, working closely with the Government through the Office of the Prime Minister and various ministries, departments and agencies, continues to amplify that national development cannot be achieved through infrastructure investment alone. Roads, electricity, and industrial parks are important enablers, but they must be complemented by deliberate coordination of economic actors to stimulate industrialisation, expand exports, deepen local content participation and strengthen domestic production capacity.
As articulated in successive State of the Nation Addresses, President Yoweri Kaguta Museveni has consistently underscored the need to transform Uganda from a subsistence economy into a modern money economy where every household participates in productive economic activity. His long-standing emphasis on wealth creation, value addition, and market-oriented production aligns directly with the ATMS strategy and the Uganda First economic agenda.
The FY 2026/27 budget presents a unique opportunity to accelerate this transformation. Agro-industrialisation must focus on strengthening farm-to-factory systems, particularly in strategic commodities such as coffee, dairy, livestock, cassava, sugar, cotton, cocoa, and fisheries. Uganda’s comparative advantage remains in agriculture, and increasing value addition within the country will significantly enhance farmer incomes while creating jobs along the entire value chain.
At the 6th Bi-Annual Presidential CEO Forum engagement, it was evident that tourism development presents another powerful avenue for household income growth. Uganda’s unique natural attractions, including mountain gorillas, national parks, cultural heritage, and adventure tourism opportunities, position the country as one of Africa’s most attractive destinations. Increased investment in tourism infrastructure, destination marketing, hospitality skills, and product diversification can substantially increase foreign exchange earnings and create thousands of jobs, particularly for youth and women.
Similarly, mineral development must go beyond extraction to prioritise beneficiation, processing, and local participation. Uganda’s mineral resources should serve as catalysts for industrialisation by creating downstream industries that generate employment and retain more value within the domestic economy.
STIs remain critical enablers across all sectors. Digital transformation, research, mechanisation, and innovation can improve productivity, reduce costs, expand market access, and enhance Uganda’s competitiveness in regional and global markets. Investment in technology-driven enterprises will be essential in positioning Uganda for future economic growth.
Recent economic data demonstrates the growing momentum within Uganda’s economy. The services sector remains the largest contributor to GDP at approximately 42.5%, followed by agriculture at 25.6% and industry at 24.6%. Importantly, the industry sector is currently the fastest-growing segment of the economy, recording growth of 12.3%, largely driven by manufacturing and construction activities. Agriculture registered strong growth of 8.8%, while services grew by over 6 percent. Manufacturing alone expanded by 8.9%, while construction recorded an impressive 19.4% growth, reflecting increasing investments in productive infrastructure and industrial capacity.
These figures reinforce the importance of maintaining a strong focus on productive sectors that create jobs and stimulate household incomes. The growth of industry, particularly manufacturing and agro-processing, demonstrates that value addition remains one of the most effective pathways toward economic transformation.
A core pillar of the Uganda First strategy is import substitution and export promotion. Uganda continues to spend substantial foreign exchange on imports that can be produced locally. Strengthening the Buy Uganda Build Uganda (BUBU) policy is therefore essential.
Economic transformation is not only structural; it is also human. Uganda’s youthful population presents a significant demographic advantage if appropriately skilled and strategically deployed. Government’s emphasis on skills development, vocational education, industrial training, and apprenticeship programs is timely and necessary.
The role of the state remains critical in providing policy direction, infrastructure, regulation, and an enabling investment climate, while the private sector drives production, innovation, and wealth creation. Global experience from countries such as South Korea, Malaysia, Singapore, and China demonstrates that sustainable economic transformation is achieved through strong state coordination combined with a dynamic and empowered private sector.
Uganda’s journey to middle-income status will ultimately be determined not by policy intentions alone, but by how effectively national resources are allocated toward productive sectors that create jobs, increase exports, and raise household incomes. With the right allocation mix, strong public-private collaboration, and deliberate implementation, Uganda can accelerate the transition from subsistence to a fully monetised economy, significantly increase household incomes, expand productive employment opportunities, and improve the quality of life for all citizens.
By strengthening collaboration between the Government and the private sector, Uganda can unlock its immense economic potential, achieve the vision of a ten-fold growth economy, and secure inclusive prosperity for current and future generations. The time for coordinated action is now.
The writer is the CEO, Presidential CEO Forum
STIs remain critical enablers across all sectors. Digital transformation, research, mechanisation, and innovation can improve productivity, reduce costs, expand market access, and enhance Uganda’s competitiveness in regional and global markets. Investment in technology-driven enterprises will be essential in positioning Uganda for future economic growth.
Recent economic data demonstrates the growing momentum within Uganda’s economy. The services sector remains the largest contributor to GDP at approximately 42.5%, followed by agriculture at 25.6% and industry at 24.6%. Importantly, the industry sector is currently the fastest-growing segment of the economy, recording growth of 12.3%, largely driven by manufacturing and construction activities. Agriculture registered strong growth of 8.8%, while services grew by over 6 percent. Manufacturing alone expanded by 8.9%, while construction recorded an impressive 19.4% growth, reflecting increasing investments in productive infrastructure and industrial capacity.
These figures reinforce the importance of maintaining a strong focus on productive sectors that create jobs and stimulate household incomes. The growth of industry, particularly manufacturing and agro-processing, demonstrates that value addition remains one of the most effective pathways toward economic transformation.
A core pillar of the Uganda First strategy is import substitution and export promotion. Uganda continues to spend substantial foreign exchange on imports that can be produced locally. Strengthening the Buy Uganda Build Uganda (BUBU) policy is therefore essential.
Economic transformation is not only structural; it is also human. Uganda’s youthful population presents a significant demographic advantage if appropriately skilled and strategically deployed. Government’s emphasis on skills development, vocational education, industrial training, and apprenticeship programs is timely and necessary.
The role of the state remains critical in providing policy direction, infrastructure, regulation, and an enabling investment climate, while the private sector drives production, innovation, and wealth creation. Global experience from countries such as South Korea, Malaysia, Singapore, and China demonstrates that sustainable economic transformation is achieved through strong state coordination combined with a dynamic and empowered private sector.
Uganda’s journey to middle-income status will ultimately be determined not by policy intentions alone, but by how effectively national resources are allocated toward productive sectors that create jobs, increase exports, and raise household incomes. With the right allocation mix, strong public-private collaboration, and deliberate implementation, Uganda can accelerate the transition from subsistence to a fully monetised economy, significantly increase household incomes, expand productive employment opportunities, and improve the quality of life for all citizens.
By strengthening collaboration between the Government and the private sector, Uganda can unlock its immense economic potential, achieve the vision of a ten-fold growth economy, and secure inclusive prosperity for current and future generations. The time for coordinated action is now.
The writer is the CEO, Presidential CEO Forum