Uganda earmarks Shs11 trillion for wealth creation in new budget

The Ugandan government has announced a significant investment of close to Shs11 trillion to bolster wealth creation across the nation, targeting households, farmers, youth, and businesses. Finance Minister Henry Musasizi unveiled the budget, emphasizing that these initiatives are designed to dismantle economic barriers and foster widespread opportunities.

A central pillar of this strategy is the Parish Development Model (PDM), which the government views as crucial for transitioning Ugandans from subsistence living to active participation in the money economy. Over the past five years, Shs4.4 trillion has been disbursed to parishes nationwide as revolving capital, with over four million beneficiaries expected by June. The PDM’s next phase will focus on enhancing productivity, promoting value addition, and improving market access, with plans to eventually establish a self-sustaining PDM Bank.

Beyond the PDM, several other programs are receiving substantial funding. The Emyooga initiative, aimed at empowering savings and credit cooperatives (SACCOs), has received Shs760 billion, supporting over 2.48 million members. The iKatale Loan Facility will be expanded to provide affordable working capital to urban traders, while the Small Business Fund continues to support SMEs recovering from the COVID-19 pandemic.

In the agricultural sector, the Agricultural Credit Facility has been allocated an additional Shs47.68 billion for 2026/27, building on Shs371.7 billion already contributed by the government. Large-scale farmers will continue to benefit from subsidized interest rates on loans.

The Uganda Development Bank (UDB) will receive a further Shs442.2 billion to boost its industrialization and value-addition efforts. Women entrepreneurs are supported through programs like GROW and UWEP, with new funding ensuring continued access to soft loans. Youth-focused initiatives, including the Youth Livelihood Programme, are also expanding, alongside a new Shs33 billion revolving fund for musicians and creative artists.

Even teachers are included in the wealth creation drive, with Shs20 billion allocated to private teachers’ unions for access to affordable credit. The overall allocation of Shs2.49 trillion for wealth creation in the 2026/27 financial year underscores the government’s commitment to accelerating economic growth and prosperity for all Ugandans.

Source: Daily Monitor (Uganda)