Uganda’s FY2025/26 Budget: A strategic inflection point for growth, capital, and collaboration

By Sanjay Rughani

Uganda’s FY2025/26 budget comes at a pivotal time — both economically and institutionally.

It reflects a country that is not only stabilising but also scaling, shifting from foundational infrastructure investment to monetisation, enterprise expansion, and targeted industrialisation.

With GDP now estimated at USD 61.3 billion, up positively from a year ago, and a growth projection of 7%, Uganda continues to demonstrate strong economic momentum underpinned by sound macro fundamentals.

This budget is intentionally pro-growth and pro-investment. It channels capital into sectors with high multiplier effects — agriculture, manufacturing, digital transformation, energy, tourism, and education.

The commitment to oil and gas development signals readiness for commercial production, while targeted support for tourism, regional infrastructure, and export diversification reflect a country preparing for both regional integration and global competitiveness.

The infrastructure agenda remains central to Uganda’s development pathway. Investment in oil-region roads, irrigation systems, industrial parks, airports, and stadia for AFCON 2027 will unlock trade corridors, improve logistics, and enable enterprise.

Just as important is Uganda’s digital transformation drive — with national systems being modernised across taxation, land, healthcare, and public finance. These reforms are not just about efficiency; they lay the digital rails for a more transparent, data-driven economy.

From the banking industry’s perspective, we are ready. Over the past years, banks have strengthened their capital bases, broadened their product capabilities — including ESG-aligned and export financing solutions — and collaborated effectively with the Bank of Uganda.

This budget creates the kind of enabling environment we’ve long anticipated. The removal of stamp duty on mortgages and agreements lowers the cost of credit and promotes financial inclusion.

Meanwhile, the startup tax holiday is a signal of intent — encouraging formalisation and early-stage investment in Uganda’s emerging innovation ecosystem.

For the financial sector, this is the time to move from preparedness to bolder action — supporting growth sectors, innovating funding models, and mobilising catalytic capital.

From the perspective of British business, the alignment is clear. The government’s focus on real economy transformation and digital readiness matches UK expertise in finance, energy, agribusiness, education, and infrastructure.

As Chairman of the British Chamber of Commerce Uganda, I see strong momentum in bilateral trade, joint ventures, and capital partnerships — especially in areas that drive long-term economic resilience.

Still, we must remain vigilant. Execution risks remain, particularly around public debt management, project timelines, climate shocks, and informal sector vulnerabilities. To achieve Uganda’s tenfold economic ambition, delivery must be disciplined, inclusive, and coordinated across institutions.

This budget sets a confident tone. Uganda has the vision, the foundations, and the momentum. It is now up to all of us — in government, finance, and enterprise — to match it with ambition, capital, and collaboration.

The writer is the CEO, Standard Chartered Bank Uganda & Chairman, British Chamber of Commerce Uganda