Why you need to read the Bank of Uganda’s 2024/25 Annual Report

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OPINION

By Kenneth Egesa

Uganda’s economy is on a steady and confident path. In a year defined by global uncertainty and shifting economic tides, the Bank of Uganda’s (BoU) 2024/25 Annual Report tells a reassuring story of resilience, discipline, and progress.

This report is more than a set of financial statements; it reflects the BoU’s unwavering commitment to price stability, financial system safety, and inclusive growth.

For citizens, investors, and development partners alike, it offers an in-depth and transparent look at the forces shaping Uganda’s economic future.

Below are some of the standout insights and achievements captured in this year’s report, a snapshot of Uganda’s economic story beyond the headlines.

Economic stability and strong growth

Uganda’s economy proved its strength amid global headwinds, delivering one of the region’s most robust growth performances. Real GDP grew by 6.3% in FY 2024/25, driven by stronger agricultural output, industrial recovery, and a resilient services sector.

Prudent monetary policy kept both headline inflation (3.5%) and core inflation (3.9 percent) firmly within the 5% medium-term target.

The Uganda shilling appreciated by 2.7% against the US dollar, supported by sound fundamentals and stable external flows. Gross official reserves rose to $4.3b, equivalent to nearly four months of import cover (excluding oil project imports), providing a crucial cushion against external shocks. These indicators underscore Uganda’s resilience and the BoU’s success in maintaining macroeconomic stability while fostering conditions for growth.

A resilient financial system

The health of Uganda’s financial system remains a cornerstone of economic stability. The 2024/25 Annual Report highlights strong performance across both the banking sector and the BoU itself.

Capital and liquidity buffers remained well above regulatory minima, while Non-Performing Loans (NPLs) declined to 3.7% from 4.9% the previous year, clear evidence of improved credit risk management.

The BoU recorded a net surplus of sh658.9b, total assets grew to sh31.9 trillion, and equity rose to sh6.2 trillion.

The Auditor General’s unmodified opinion reaffirmed BoU’s integrity, transparency, and strong governance.

The Central Bank Rate was reduced to 9.75% and maintained through the year, reflecting confidence in the economy’s underlying stability.

Together, these outcomes speak to a financial system that is resilient, well-regulated, and positioned to support Uganda’s growth ambitions.

Innovation in digital payments

The modernisation of Uganda’s payments ecosystem continued at pace, reflecting the BoU’s commitment to innovation, security, and financial inclusion.

The introduction of a third Automated Clearing House (ACH) session in February 2025 improved the speed and efficiency of retail payments.

The ongoing migration to the ISO 20022 messaging standard and replacement of the Real-Time Gross Settlement (RTGS) system are positioning Uganda among economies aligned with international best practice. The operationalisation of an Anti-Fraud Consortium and deployment of an AI-enabled Payments Control System further enhanced the safety and resilience of digital transactions. These developments are helping to build trust, efficiency, and innovation in Uganda’s financial landscape, while ensuring that modernisation remains inclusive and secure.

Looking ahead: a cautiously optimistic outlook for 2025/26

The BoU remains optimistic about the country’s medium-term prospects. Real GDP growth is projected between 6.0% and 6.5% in FY 2025/26, underpinned by continued investment in the oil and gas sector, gains in agricultural productivity, and momentum in digital innovation.

Core inflation is expected to average between 4.5% and 5.0%, maintaining alignment with the BoU’s medium-term target. The BoU will continue focusing on strengthening monetary policy transmission, deepening financial markets, and reinforcing payment system resilience.

The 2024/25 Annual Report is not just an institutional record; it is a document of accountability and a statement of confidence in Uganda’s economic trajectory. It captures the policy decisions, operational milestones, and governance reforms that keep Uganda’s financial system stable and forward-looking.

As Uganda continues to navigate a changing global economy, the report offers valuable insight into how monetary and financial sector policies are being aligned to deliver long-term, inclusive prosperity.

We invite readers, policymakers, academics, business leaders, and citizens to explore the full BoU 2024/25 Annual Report.

Inside, you will find the detailed story behind the numbers: how disciplined policy, innovation, and institutional integrity are shaping Uganda’s future.

Read the full report today and join us in understanding, supporting, and shaping Uganda’s economic journey at www.bou.or.ug.

The writer is the Director, Communications and Public Relations, Bank of Uganda