Uganda’s economy grew by a strong 8.5% in the second quarter of the 2025/26 financial year, up from 5.4% recorded during the same period last year, government officials have announced.
The Minister of State for General Duties at the Ministry of Finance, Planning and Economic Development, Henry Musasizi, revealed the figures on Tuesday, March 24, 2026, while appearing before Parliament’s Committee on Finance. He was accompanied by the Ministry’s Under Secretary and Accounting Officer, Sengonzi Damulira, along with a technical team to present the Ministerial Policy Statement for Vote 008.
According to Musasizi, the strong economic performance reflects effective macroeconomic management, supported by robust aggregate demand and increased investment in key sectors such as ICT, construction, and machinery.
“These sectors are critical for long-term growth and structural transformation,” he noted.
He added that Uganda has maintained macroeconomic stability, with inflation easing to 2.9% in February 2026, down from 3.2% in January. This, he said, was driven by prudent fiscal and monetary coordination, as well as improved food supply conditions.
Musasizi further reported that the country recorded a merchandise trade surplus of USD 147.26 million in January 2026, marking a notable shift from previous trade deficits.
On domestic revenue mobilization, he said net revenue collection for the second quarter reached Shs16,476.07 billion against a target of Shs17,511.59 billion, translating to a performance of 94.09%. This represents revenue growth of 8.05% compared to the same period in the 2024/25 financial year.
On developments in the oil sector, Musasizi highlighted significant progress toward first oil production. He revealed that the East African Crude Oil Pipeline is now 80% complete, while engineering studies for the proposed oil refinery are ongoing.
“The government expects about Shs2.2 trillion in oil revenues in the 2026/27 financial year, of which Shs1.4 trillion is projected to finance the national budget,” he said.
Musasizi reaffirmed the government’s commitment to sustaining economic growth through continued investment in productive sectors and prudent fiscal management. He emphasized that with anticipated oil revenues and ongoing infrastructure development, Uganda is well positioned to achieve greater economic resilience and inclusive growth in the coming years.
