Uganda eyes faster growth after elections, Finance Ministry says

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Uganda’s economy remained stable during and after the recent general elections, with growth staying on track and inflation under control, according to a post-election economic and fiscal update released by the Ministry of Finance this week.

The report was published under the Public Finance Management Act (PFMA) Cap. 171, a law that requires the finance minister to issue an economic update within four months after polling day following a general election. The aim is to give the public and financial markets a clear picture of the country’s economic position after an election period, when investors and households often watch closely for signs of instability or policy shifts.

This year’s update delivers a reassuring message from the government: Uganda’s key economic indicators have largely held steady.

According to the Ministry of Finance, “the macroeconomic environment remained stable during the general elections and the post-election period,” with most major indicators performing as projected before the vote.

That matters because election periods can sometimes trigger uncertainty around government spending, inflation, or investor confidence. In Uganda’s case, the ministry says the domestic economy has remained resilient despite a difficult global backdrop marked by weaker international growth, geopolitical tensions and unstable commodity markets.

Economic growth for the 2025/26 financial year is now projected at 6.6 per cent. The ministry, through an X post, said that projection is backed by “high frequency indicators of economic activity” — short-term economic measurements such as trade activity, production levels and spending trends, which showed stronger domestic activity during the third quarter of the financial year.

For ordinary Ugandans, that growth forecast points to an economy that is still expanding despite international pressure. But the report also suggests the government sees momentum building from within, driven more by domestic demand and investment than by external conditions.

Inflation also remained “low and stable,” according to the ministry, helping to ease pressure on household budgets. At the same time, Uganda’s external position, the country’s financial relationship with the rest of the world, improved.

The report links that improvement to rising export earnings and continued inflows of foreign currency from tourism, foreign direct investment and remittances sent home by Ugandans abroad. Those inflows are important because they help support the value of the shilling, strengthen foreign exchange reserves and make it easier for the country to manage imports and debt obligations.

The update also connects the current economic performance to broader government development goals.

Officials said the results reflect ongoing implementation of the Fourth National Development Plan, or NDP IV, which is designed to raise household incomes and improve living standards. The report also ties current performance to Uganda’s long-term “Ten-Fold Growth Strategy,” a government target aimed at expanding the economy to $500 billion (sh1,850 trillion) by 2040 through investment in productive sectors, infrastructure and human capital.

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, who is also serving as acting finance minister, said the completion of the elections gives government space to sharpen economic policy and focus on productivity.

“The successful conclusion of the general elections gives the country an opportunity to continue strengthening the efficiency and effectiveness of fiscal policy to increase productivity and speed up the process of socioeconomic transformation,” Dr Ggoobi said.

He said the government will place major emphasis on investment in agro-industrialisation, tourism, mineral-based development, including oil and gas, and science, technology and innovation. The Parish Development Model, the government’s flagship local development programme aimed at boosting household incomes through parish-level support, will also continue to be rolled out.

At the same time, Dr Ggoobi acknowledged the pressure of managing growth while keeping borrowing sustainable.

“As we continue to set the economy on a Tenfold Growth Trajectory, we are mindful of fiscal and debt sustainability,” he said. “Therefore, the government will focus on improving domestic revenue mobilisation and efficiency of public expenditure to achieve self-sustaining and inclusive growth.”

That means government is expected to prioritise raising more revenue locally and spending public funds more efficiently while trying to maintain growth.