Business
Uganda remains classified as a low-income economy - World Bank
While the country has posted commendable Gross Domestic Product (GDP) growth rates in recent years, supported by agriculture, services, oil sector preparations, and infrastructure projects, it has not yet translated this into a sufficient lift in Gross National Income (GNI) per capita to exit the low-income bracket, according to the report.
Uganda remains classified as a low-income economy in the 2026/2027 global rankings according to the World Bank Group. (File photo)
By: Ali Twaha, Journalist @New Vision
__________________
Uganda remains classified as a low-income economy in the 2026/2027 global rankings according to the World Bank Group’s annual update to country income classifications, released on July 1, 2026.
While the country has posted commendable Gross Domestic Product (GDP) growth rates in recent years, supported by agriculture, services, oil sector preparations, and infrastructure projects, it has not yet translated this into a sufficient lift in Gross National Income (GNI) per capita to exit the low-income bracket, according to the report.
The World Bank classifies African economies into four income groups (low, lower-middle, upper-middle, and high) based on GNI per capita using the Atlas method. The classification thresholds are updated annually on July 1 to serve as a global reference.
Uganda remains in the low-income classification, along with Rwanda, Burundi, South Sudan, Ethiopia and the Democratic Republic of Congo.
While Uganda and Rwanda have reported strong growth figures over the past decade through infrastructure and services, they have not yet matched the per capita momentum needed for reclassification by the World Bank.
Speaking during the State of the Nation Address, President Yoweri Museveni said the economy remains one of the best-performing economies in the world and that, by the foreign exchange method, it already qualifies for the middle-income status classification.
Uganda remains in the low-income classification, along with Rwanda, Burundi, South Sudan, Ethiopia and the Democratic Republic of Congo.
While Uganda and Rwanda have reported strong growth figures over the past decade through infrastructure and services, they have not yet matched the per capita momentum needed for reclassification by the World Bank.
Speaking during the State of the Nation Address, President Yoweri Museveni said the economy remains one of the best-performing economies in the world and that, by the foreign exchange method, it already qualifies for the middle-income status classification.
“Uganda has graduated from the least developed countries to a lower-middle-income country. Our GDP rose from $3.9b in 1986 to $69.3b today, according to the foreign exchange method. Per capita income has increased to $1,278, surpassing the lower-middle-income threshold of $1,136,” he said.
Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, said the country satisfied all requirements and is currently undergoing assessment by the UN for graduation.
The UN Committee for Development Policy confirmed in March 2024 that Uganda, along with Rwanda and Tanzania, had met the minimum requirements for graduation from the list of least developed countries (LDC).
The decision was based on progress in human development, and in reducing economic and environmental vulnerabilities. The country will need to maintain that progress when the UN carries out its second assessment in 2027 before a graduation date is set.
Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, said the country satisfied all requirements and is currently undergoing assessment by the UN for graduation.
The UN Committee for Development Policy confirmed in March 2024 that Uganda, along with Rwanda and Tanzania, had met the minimum requirements for graduation from the list of least developed countries (LDC).
The decision was based on progress in human development, and in reducing economic and environmental vulnerabilities. The country will need to maintain that progress when the UN carries out its second assessment in 2027 before a graduation date is set.