KAMPALA, UGANDA — Uganda’s finance minister, Matia Kasaija, announced yesterday that the nation’s economy has continued to show robust growth, with significant gains in exports, tourism, and foreign investment despite global and domestic challenges.
Kasaija said Uganda’s economy expanded to an estimated $61.3 billion in the 2024/25 fiscal year, up from $53.9 billion the previous year. The Gross Domestic Product (GDP) grew by 6.3%, an increase from the 6.1% growth rate in 2023/24, with all key sectors—agriculture, industry, and services—contributing to the expansion.
“Uganda has demonstrated remarkable resilience,” Kasaija said, attributing the performance to government initiatives like the Parish Development Model and a stronger private sector. He also credited stable inflation and a favorable exchange rate, noting that the Ugandan shilling appreciated by 0.5% in July 2025 and was ranked as Africa’s most stable currency by the International Monetary Fund.
Growth in Exports and Investment
Merchandise exports saw a sharp rise of 64.3%, reaching $1.15 billion in the 12 months ending June 2025. This growth was driven by increased receipts from coffee, minerals, tea, and fish. The country’s export base has also diversified over the past 15 years, with the share of coffee exports dropping from 75.6% in 1995 to just 20.9% in 2025.
Foreign direct investment (FDI) inflows also increased, rising to $3.3 billion in 2024, largely fueled by the oil and gas sector. Remittances from Ugandans living abroad remained the top source of foreign exchange, totaling $1.4 billion in 2024.
Mixed Reactions on the Ground
While Kasaija’s report painted a positive picture, some on the ground expressed skepticism. In his characteristic blunt style, the minister dismissed critics who complain about the economy. “It is only the lazy one who will keep saying where is the money?” he said. “But how can you get it if you wake up and spend time drinking and smoking?”
Dr. Asuman Guloba, director of development planning at the National Planning Authority, supported the minister’s data. “The economy is doing well, but it can do much better,” he said, pointing to stable inflation and new infrastructure projects as signs of robust growth.
However, Thadeus Musoke, a former leader of the Kampala City Traders Association, said the official data did not reflect the reality for many. “It is very terrible,” Musoke said. “Those people are in their ACs writing things when people are struggling. … These people need to get on the ground and see what is happening.”
Kasaija projected a continued positive trajectory for the economy, forecasting at least 7% growth in the 2025/26 fiscal year and a potential expansion to a $500 billion economy within the next 15 years, driven by agro-industrialization, tourism, and mineral industries.
