Uganda's 2026/27 budget: Opportunities hidden amidst trader concerns

Uganda’s Shs84.3 trillion national budget for the 2026/27 financial year has been unveiled, yet many local businesses and agricultural producers express confusion and frustration regarding its practical impact on their operations. Traders like Baker Bahasha and Jennifer Aber find the budget’s economic promises opaque, while farmers in regions like West Nile cite immediate concerns about market access and storage facilities that remain unaddressed.

Urban traders, particularly in Kampala’s textile sector, are grappling with a heavy tax burden, with cumulative taxes reportedly reaching 90-95 percent. This situation leads to opposition to certain import taxes and valuation methods that inflate costs and shrink profit margins, making the budget feel disconnected from the reality of ordinary traders.

Despite these concerns, the budget highlights substantial opportunities, particularly in sectors poised for growth. The oil and gas sector is projected to contribute significantly to GDP by 2030, with Shs473.51 billion allocated to support investments in the East African Crude Oil Pipeline (EACOP), the Uganda Refinery Project, and Kabalega Industrial Park. This influx is expected to create demand for local suppliers in various specialized services.

Manufacturing and industrial parks also receive a significant boost with Shs1.03 trillion, aiming to expand infrastructure for import substitution and regional exports. The creative sector is targeted for investment to combat youth unemployment, with projections of employing over a million Ugandans through film, music, and digital content creation.

Furthermore, the government is pushing for a transition in agriculture towards commercial, export-led production, with investments in areas like horticulture and food processing. The digital economy is also a focus, with Shs514 billion allocated to ICT infrastructure to drive digital employment and support the growth of Business Process Outsourcing (BPO).

Budget analysts emphasize that the success of these ambitious plans hinges on effective implementation and ensuring businesses, especially SMEs, have access to finance. The budget includes substantial allocations for agricultural finance, supporting institutions like the Uganda Development Bank and various wealth creation programs, alongside initiatives like the Parish Development Model aimed at boosting household incomes.

Source: https://www.monitor.co.ug/uganda/business/prosper/where-is-the-money-in-the-2026-27-budget—5586416