Uganda nears exit from world’s poorest nations list

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The Ministry of Finance has highlighted a series of economic and social milestones it says signal major progress in the country’s long-term development journey, including reduced poverty levels, rising life expectancy, stronger tax collections and growing foreign investor confidence.

In a post on X published on May 19, the ministry outlined seven indicators of Uganda’s economic transformation over the past two decades. The figures span income levels, healthcare access, investment inflows, remittances and government revenue collection.

The ministry says Uganda has now met the graduation criteria from the category of Least Developed Countries, commonly known as LDCs.

The United Nations classifies countries as Least Developed Countries based on income levels, human development indicators and economic vulnerability. Graduation from the category is generally viewed as a sign that a country’s economy and social conditions have improved sufficiently to move beyond the world’s poorest and most structurally vulnerable economies.

Although graduation is considered a major achievement internationally, it can also bring new challenges. Countries that leave the LDC category may gradually lose access to certain trade preferences, concessional financing arrangements and development support mechanisms previously available to poorer nations.

The ministry also pointed to improvements in household welfare and inequality.

According to the figures shared, Uganda’s income poverty level has fallen to 16%, while the proportion of Ugandans living in subsistence conditions has dropped to 33%. The ministry further stated that income inequality has reduced, with Uganda’s Gini index declining from 45% in 2002 to 38% currently.

The Gini index is an international measure used to assess income inequality within a country. Lower figures generally indicate a more equal distribution of income across the population.

The ministry also highlighted significant growth in government revenue collection, saying annual collections had nearly doubled within five years.

According to the ministry, domestic revenue increased from sh17 trillion in the 2019/20 financial year to sh32 trillion in the 2024/25 financial year.

Stronger revenue collection is important because it affects the government’s ability to fund public services such as roads, healthcare, education and security without relying excessively on borrowing.

Another key indicator cited was the growing role of Ugandans living abroad in supporting the economy.

Remittances from Ugandans working overseas reached $2.2 billion, equivalent to roughly sh9 trillion, during the 2024/25 financial year.

Remittances have become increasingly important for many African economies because they provide direct financial support to households, help families pay school fees and healthcare costs, and inject foreign currency into national economies.

The ministry also argued that foreign investors are showing increasing confidence in Uganda’s economy.

It said Uganda attracted more than $5.4 billion in foreign inflows during the last calendar year, including $3.7 billion in foreign direct investment and $1.7 billion in portfolio investments.

Foreign direct investment typically involves long-term investments in businesses, factories, infrastructure or projects, while portfolio investments usually involve financial assets such as government securities and shares.

Health and social indicators also featured prominently in the ministry’s update.

According to the figures shared, life expectancy in Uganda has risen from roughly 50 years in 2000 to about 68.8 years in 2024.

Life expectancy is often used globally as a broad measure of healthcare access, living standards, nutrition and overall public health conditions.

The ministry further stated that the proportion of Ugandans living within five kilometres of a health facility had increased from about 80% to 91%.

Improved physical access to health centres can significantly affect maternal care, disease treatment, emergency response and child survival rates, especially in rural areas where distance has historically remained a major barrier to healthcare access.