Uganda’s economy continues to show resilience, registering steady growth across multiple sectors, according to the Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi.
Speaking on Morning Breeze, Ggoobi highlighted robust economic expansion, controlled inflation, a stable currency, and increased export earnings, painting an optimistic picture of the country’s financial trajectory.
Uganda’s economy has consistently grown at a rate exceeding 6%, with the latest quarter registering a 6.1% increase.
This marks a significant rebound from the 3% growth recorded in June 2020 at the height of the COVID-19 pandemic.
The overall economy is projected to reach $59 billion by June, with further acceleration expected once oil revenues start flowing. Per capita income has also risen, now standing at $1,154.
Inflation, which peaked at 10% in October 2022, has been successfully managed. As of January 2025, inflation stands at 3.6%, slightly up from 3.3% in December due to increased spending during the festive season.
However, the government remains confident that inflation will stay within the 5% target range.
The Ugandan shilling has demonstrated remarkable stability over the past decade, in contrast to several other African currencies that have faced volatility. The stability is attributed to growing foreign exchange earnings and effective interventions by the central bank.
Interest rates have also remained relatively stable, supporting a balanced financial environment. The surge in non-performing loans (NPLs) during the COVID-19 period has since been curtailed, dropping from over 6% to approximately 4.5%, further strengthening the financial sector.
Uganda’s export earnings have experienced a notable increase, reaching USD 10.25 billion by June 2024, up from approximately USD 6 billion in the previous year.
This growth is largely driven by the strong performance of key sectors, including coffee, gold, and tourism.
Additionally, foreign direct investment (FDI) inflows now exceed USD 3 billion, mainly fueled by investments in the oil and gas sector. Remittances from Ugandans in the diaspora have also risen to USD 1.35 billion, further bolstering the economy.
Ggoobi expressed confidence in Uganda’s economic trajectory, citing a combination of strong growth, macroeconomic stability, and rising investor confidence.
However, analysts note that challenges such as external shocks, regional trade dynamics, and public debt sustainability remain critical areas for continued government focus.
Despite these hurdles, Uganda appears poised for sustained economic expansion in the coming years.
