Kampala: – Uganda’s economy has more than doubled in size over the past five years, despite the global economic shocks caused by the COVID-19 pandemic and disruptions in international markets, according to government figures highlighting the country’s performance under the ruling National Resistance Movement (NRM).
Officials say, the growth reflects the outcomes of sustained macro-economic stability, low inflation, a steady exchange rate, and disciplined fiscal and monetary management which have anchored Uganda’s free-market economy and helped it withstand global turbulence.
According to the report, the size of the economy expanded from Shs 128.5 trillion (USD 34.7 billion) in 2019 to Shs 226.3 trillion (USD 61.3 billion) in the 2024/25 financial year, representing an average annual growth rate of 6.3 percent. By the end of FY 2025/26, the economy is projected to reach Shs 254.2 trillion (USD 66.1 billion).
Government economists attribute the recovery to resilience in agriculture, industry, and services, as well as to increased investment in infrastructure, industrial parks, and wealth-creation initiatives.
Uganda Crosses into Middle-Income Status
In March 2024, Uganda officially met the criteria for graduation from the category of Least Developed Countries (LDCs), marking its entry into the lower-middle-income bracket.
The report indicates that GDP per capita rose from Shs 3.15 million (USD 891) in FY 2019/20 to Shs 4.52 million (USD 1,263) in FY 2024/25, and is expected to reach Shs 4.76 million (USD 1,324) by the end of FY 2025/26.
“This milestone sets the foundation for Uganda’s continued socio-economic transformation,” the manifesto document states.
Poverty and Inequality Decline
Officials report that the share of Ugandans living in poverty has dropped from 21.4 percent in 2016 to 16.1 percent in 2025.
Similarly, the proportion of households dependent on subsistence farming declined from 68.9 percent in 2010 to 33.1 percent by FY 2023/24.
The improvements are linked to government programs such as Operation Wealth Creation (OWC), the Parish Development Model (PDM), and Emyooga, which aim to increase household incomes and promote financial inclusion.
Income inequality has also narrowed, with the Gini coefficient falling from 41 percent in 2020 to 38 percent in 2024, its lowest level in three decades.
Employment Recovery and Informal Sector Growth
The report shows that new job creation, which had slumped to 258,286 in FY 2020/21 during the COVID-19 lockdown, rebounded to 345,039 in FY 2021/22 and is projected to reach 399,083 by FY 2025/26.
The informal sector, a critical part of Uganda’s economy, grew from 9 million workers in 2019/20 to 10.5 million in 2024/25, now accounting for over 85 percent of the workforce and contributing 51 percent of GDP.
Public sector employment also rose from 329,633 workers in 2020 to 366,574 in 2024/25.
Currency, Prices, and Revenue Stability
Uganda’s inflation has remained low, and the report notes that the shilling was among Africa’s most stable currencies during FY 2024/25, appreciating even as other regional currencies weakened.
“The cost of living has been well managed,” the report asserts, citing stable prices for basic commodities such as sugar, salt, soap, and fuel.
Revenue performance improved markedly, with total tax and non-tax collections rising from Shs 17.6 trillion in FY 2019/20 to Shs 32 trillion in FY 2024/25, nearly doubling within five years.
Industrial and Export Expansion
Uganda’s industrialization drive continues to gain momentum, supported by government investment in industrial parks and value-addition enterprises.
The number of factories increased from 37,559 in 2019/20 to about 50,000 by 2024/25, of which 10,437 are formal and 690 operate within designated industrial parks.
Exports have also diversified and grown, with total earnings from goods and services reaching USD 13.3 billion in FY 2024/25, up from previous years. Goods exports alone accounted for USD 10.6 billion.
Top export earners included gold (USD 4.2 billion), coffee (USD 2.2 billion), manufactured products (USD 2.4 billion), cocoa beans (USD 620 million), and fish (USD 149 million).
Other growing exports were sugar, tea, maize, cement, fruits, and milk products, signalling a more diversified and sophisticated export portfolio.
Remittances and Power Generation
Remittances from Ugandans abroad rose from USD 1.1 billion in FY 2020/21 to USD 1.6 billion in FY 2024/25, contributing an estimated Shs 5.76 trillion to the economy.
Electricity generation increased from 1,839 megawatts in 2019 to 2,051 megawatts in 2024 following completion of key projects such as Karuma and Isimba hydropower plants.
As a result, national electricity access reached 60 percent of the population, up from 51 percent five years ago.
Tourism Recovery and Wealth-Creation Investment
Tourism earnings grew by 13.1 percent to USD 1.52 billion in the 12 months to March 2025, from USD 1.36 billion in the previous year — a rebound attributed to peace, marketing, and investments in Uganda Airlines and other infrastructure.
Over the last decade, government has injected about Shs 11 trillion into wealth-creation programmes, contributing to a reduction in poverty from 56.4 percent in 1992 to 16.1 percent in 2024, and slashing the number of households in the subsistence economy by half.
According to government projections, these interventions coupled with ongoing industrialization, regional trade, and youth skills development are expected to sustain economic growth above 6 percent annually as Uganda pursues its vision of attaining upper-middle-income status in the coming decade.
