economy 31 July 2026 Uganda Investment Authority
Uganda's Economy Reaches USD 70 Billion, Focus Shifts to Domestic Revenue Mobilization
Uganda's economy has grown to an estimated USD 70 billion, with the Permanent Secretary of the Finance Ministry, Dr. Ramathan Ggoobi, highlighting a strong policy consensus as a key driver. The primary challenge moving forward is the low mobilization of domestic revenue. Source: https://ugandainvest.go.ug/ugandas-economy-growing-steadily-finance-permanent-secretary
The Ugandan economy has shown significant expansion, now standing at approximately USD 70 billion, according to Dr. Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury in the Ministry of Finance. This growth positions the nation to pursue its ambitious target of a USD 500 billion economy within the next 15 years.
Dr. Ggoobi emphasized a newfound “policy consensus” across government, the private sector, financial institutions, and development partners. He noted that this alignment, evident in planning frameworks like the Fourth National Development Plan (NDP IV), has been a critical missing element in past economic transformations, citing the success of the “Asian Tigers” as an example of what policy unity can achieve.
Last year, Uganda experienced a relatively stable economic climate, characterized by controlled inflation, a steady shilling, robust growth rates, and an increase in exports, particularly coffee. Dr. Ggoobi attributed this stability partly to the close collaboration between the Ministry of Finance and the Bank of Uganda in coordinating fiscal and monetary policies.
Despite the positive trajectory, Dr. Ggoobi identified low domestic revenue mobilization as the most significant hurdle to reaching the USD 500 billion economic goal. Urgent measures are needed to implement the revenue mobilization strategy effectively. Projections for Fiscal Year 2026/27 indicate an increase in domestic revenue to Shs 45.6 trillion, with a government target to raise the tax-to-GDP ratio from around 14% to 20% by 2030.
Challenges such as a narrow tax base, which places a heavy burden on a limited number of taxpayers, and the prevalence of informality in the economy, hindering tax collection, were also highlighted. To address these, the government is undertaking reforms in procurement to combat corruption, enhance project implementation, prioritize concessional financing for infrastructure, and invest in value addition for key sectors like coffee, minerals, fruits, vegetables, beef, and dairy.
Source: Uganda Investment Authority