economy 25 March 2026 Daily Monitor (Uganda)
Uganda's Economy Accelerates in February with Strong Sectoral Gains
Uganda's economy demonstrated robust growth in February, fueled by agriculture, industry, and services amid rising investments and demand. Key indicators like PMI and BTI highlighted business expansion, falling inflation, and a trade surplus. Source: https://www.monitor.co.ug/uganda/news/national/what-drove-economic-growth-in-february--5403490
Uganda’s economy gained momentum in February, with positive signals from high-frequency indicators. The Purchasing Managers’ Index climbed to 54.2 from 52.6 in January, reflecting higher demand, new orders, and job creation across manufacturing, services, agriculture, and construction.
The Business Tendency Index rose to 58.70, boosting confidence especially in agriculture, manufacturing, financial services, and trade, though construction remained cautious. The Composite Index of Economic Activity continued its upward streak, reaching 183.90 in January 2026.
Overall, the economy grew 8.5 percent in Q2 of FY2025/2026, up from 5.4 percent last year, supported by exports, tourism, and oil activities. Inflation dropped to 2.9 percent, the lowest this financial year, thanks to cheaper food from better harvests and lower service costs.
State Minister Henry Musasizi credited policy measures and investments in ICT, construction, and machinery. Exports jumped 72.1 percent year-on-year to $1.453 billion, led by gold and coffee, yielding a $147 million trade surplus despite rising imports.
The shilling depreciated slightly to Shs3,568 against the dollar, while the Bank of Uganda held the CBR at 9.75 percent. Government raised Shs1.613 trillion via securities. Oil prospects brighten with the EACOP at 80 percent complete, eyeing Shs2.2 trillion in revenues for 2026/27.
Source: Daily Monitor (Uganda)