Uganda eyes 10.2% economic growth as oil production looms

Uganda’s economy is poised for its most significant expansion in decades, with official projections forecasting a robust 10.2% growth for the Financial Year 2026/27. This accelerated growth is primarily attributed to the impending start of commercial oil production, a long-awaited milestone for the nation.

Minister of Finance, Planning and Economic Development, Henry Musasizi, announced this optimistic outlook during the presentation of the National Budget. He highlighted that achieving double-digit growth would be a return to levels not seen since the economic reforms of the 1990s. Musasizi emphasized the broader benefits, stating that a larger economy will translate into more jobs, increased household incomes, expanded business opportunities, and greater resources for vital public services like education, healthcare, and infrastructure.

Despite global economic uncertainties, Uganda’s economic fundamentals are described as strong and stable. Inflation has been kept low, averaging 3.8%, and the exchange rate remains steady. Foreign Direct Investment (FDI) has seen a substantial increase, reaching $3.2 billion in the year leading up to March 2026, with local startups attracting significant venture capital. Remittances from Ugandans abroad have also surged, contributing to the positive economic picture.

The tourism sector has shown a strong recovery, with earnings in 2025 surpassing pre-pandemic levels. The government plans to further boost this sector through infrastructure development and enhanced economic diplomacy. Additionally, the Ugandan shilling is noted as one of Africa’s best-performing currencies, supported by increasing foreign exchange reserves and significant export earnings, which reached $18.04 billion in the 12 months to March 2026.

This projected growth signifies a new era for Uganda, with the oil sector expected to be a major catalyst for transformation and improved livelihoods across the country.

Source: Daily Monitor (Uganda)