KAMPALA, Uganda — President Yoweri Kaguta Museveni on Thursday projected that Uganda’s economy will reach $66.9 billion by June 2026, using the foreign exchange method, and grow by 7% this financial year. He said the momentum would escalate to double-digit growth once oil production begins.
Speaking at the 63rd Independence Day anniversary celebration on Oct. 9, 2025, Museveni credited the ruling National Resistance Movement, or NRM, with rescuing the country from the economic collapse, constitutional decay, and mass killings that plagued Uganda between 1971 and 1986. He estimated 800,000 Ugandans were killed extra-judicially during that period.
Economic Strategy and Priorities
The president warned against what he termed “Kumemerera” (scattering thin) resources across too many sectors, a practice he said delayed the repair of tarmac roads and diluted the impact of wealth creation and infrastructure spending.
Museveni noted that the NRM government inherited an economy valued at $3.9 billion in 1986. Since then, he outlined five phases of growth: minimum economic recovery, economic expansion, diversification with commercial production of new items like milk and bananas, value addition to raw materials, and the knowledge economy of science, technology, and innovation.
He insisted on maintaining budget prioritization, as he had done in 2006, by focusing on roads and electricity. This boost saw the Ministry of Works budget increase from 373.9 billion Ugandan shillings in 2005 to 1,215 billion Ugandan shillings by 2010. Over the same period, the electricity budget moved from 133.47 billion Ugandan shillings to 698.9 billion Ugandan shillings.
Focus Areas for Oil Revenue
Even with oil revenue, Museveni proposed that initial budgeting concentrate on a minimum set of areas:
- Defense
- Roads (tarmac and murram)
- Electricity
- Education
- Health
- Water for drinking and irrigation
- The railway
- Wealth creation programs (including PDM, UDB, and Ghetto funds)
- Science and innovation (mentioning Kira Motors and Magoola)
- Salaries for specific public servants, including government scientists, the judiciary, and security personnel.
Social Progress and Regional Integration
The president highlighted significant social progress, noting that in spite of the population rising from 14 million in 1986 to 46 million in 2024, key indicators have improved:
- Infant mortality has fallen from 119 deaths per 1,000 live births to 28 deaths.
- Life expectancy has increased from 43 years to 68 years.
- The literacy rate has risen from 43% in 1986 to 80% today.
Museveni also stressed the need for the economic integration of East Africa to ensure a large market for wealth creators. This, he added, should lead to the political integration of East Africa and a political federation that would act as a “center of gravity for the black race” and create a strong defense potential.
In a final note on peace and reconciliation, the president welcomed back Col. Samson Mande, who had previously fled into exile due to “internal intrigue” and engaged in rebel activities but agreed to return to Uganda. Museveni recalled Mande’s service in 1979 as a volunteer scout for the Task Force Division of the TPDF and his command of the 15th battalion during the 1985 Siege of Masaka.
