Uganda's GDP Poised for Significant Growth to $80 Billion, President Museveni Announces

President Yoweri Museveni has outlined an optimistic economic outlook for Uganda, forecasting a rise in the nation’s GDP from the current $69.3 billion to $80 billion by the next financial year. This projection comes as the country prepares for the commencement of oil production expected by the end of 2026.

During his 2026 State of the Nation Address, President Museveni highlighted that the economy is set for “further and faster economic growth and transformation.” He anticipates economic growth to accelerate to 10 percent in the coming year, a substantial increase from the current 6.8 percent, fueled significantly by the burgeoning oil sector.

The President noted that Uganda’s economy has demonstrated remarkable resilience, expanding 17 times over the past four decades. Key sectors like commercial agriculture, manufacturing, services, and information and communication technology (ICT) are identified as the primary drivers of this sustained growth. Uganda has now achieved lower-middle-income status, with a per capita income of $1,279, and this figure is expected to continue climbing as the nation’s entrepreneurial middle class expands.

Furthermore, Uganda’s export basket has seen significant diversification, with 39 new products, including pharmaceuticals, refined gold, steel, ICT goods, and dairy, now contributing to international trade. Exports reached $18 billion in the twelve months leading up to March 2026, with gold alone generating $851.35 million. The country also enjoys surpluses in numerous products, ranging from milk and coffee to cement and maize.

The government is actively supporting this economic expansion through initiatives like the Uganda Development Bank, which has allocated 1.6 trillion shillings to support investors and businesses in key sectors. Recent economic data shows strong performance, with Uganda’s economy growing by 8.5 percent in the second quarter of the 2025/26 financial year, led by robust activity in the industry sector.

Dr. Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, attributed this strong growth to factors including the Parish Development Model, infrastructure investments, increased foreign direct investment, the impending oil production, and export momentum, all supported by a stable macroeconomic environment. Uganda also boasts the lowest inflation rate in the East African Community at 3.2 percent and has seen its currency, the shilling, strengthen against the US dollar.

Source: Uganda Investment Authority