Uganda's Economy Shows Continued Improvement in April 2026

The Ugandan economy demonstrated a steady upward trajectory in April 2026, according to the latest Performance of the Economy Report. The Purchasing Managers’ Index (PMI), a key metric for economic health, rose to 55.0 from 54.3 in the previous month, signaling robust expansion. This growth was primarily fueled by increased customer demand, leading to higher output and more employment opportunities.

Business sentiment remained optimistic, with the Business Tendency Index (BTI) holding firm above the 50-point threshold at 55.8. Investors expressed positive outlooks concerning rising order volumes, expected job creation, and competitive market conditions across various sectors.

Annual headline inflation inched up to 3.0 percent in April 2026, a slight increase from 2.8 percent in March, attributed mainly to higher domestic fuel and transport costs. Global geopolitical tensions influenced international oil prices, but government measures, including centralized fuel imports by UNOC and strategic reserve management, helped stabilize pump prices, keeping them competitive within the East African Community.

The Ugandan Shilling experienced a rebound, appreciating by 0.4 percent against the US Dollar. This appreciation was propelled by increased foreign exchange inflows from exports and portfolio investments, which surpassed demand from the energy and manufacturing sectors.

The Central Bank Rate remained unchanged at 9.75 percent, with the Bank of Uganda deeming the current monetary policy stance appropriate for the prevailing macroeconomic conditions, despite potential inflationary pressures from global events.

Uganda’s merchandise trade also showed improvement in March 2026. Export earnings saw a significant year-on-year increase of 45.6 percent, largely driven by mineral exports. This surge in exports helped narrow the merchandise trade deficit substantially.

For more details on the economic performance, please refer to the full report.