Uganda’s economy has demonstrated strong resilience despite mounting global uncertainties, growing by a robust 6.3 percent in the financial year 2024/25, according to the Pre-Election Economic and Fiscal Update published by the Ministry of Finance, Planning and Economic Development.
The update, released in line with the Public Finance Management Act (PFMA) Cap 171, Section 18(1)(a), is a statutory requirement that obliges the Minister of Finance to publish an economic and fiscal outlook not earlier than four months before polling day in a general election year.
In the report, the Ministry notes that Uganda’s economy has remained steady in the face of global shocks ranging from trade wars to heightened geopolitical tensions, which have disrupted supply chains and slowed growth in many parts of the world.
The update attributes the strong performance to continued macroeconomic stability, supported by effective coordination between fiscal and monetary policy. This policy alignment, the Ministry says, has helped keep inflation in check, stabilise the exchange rate and maintain investor confidence.
Speaking on the outlook, the Permanent Secretary and Secretary to the Treasury (PSST), Dr Ramathan Ggoobi, said government remains committed to safeguarding macroeconomic stability to sustain and accelerate growth.
“With stability preserved, economic growth is projected at 6.6 percent in FY 2025/26, and is expected to continue strengthening to over 7 percent over the medium term,” Dr Ggoobi said.
He added that government will continue taking deliberate policy actions to ensure the economy remains on a strong growth trajectory, even as the country heads into a politically sensitive election period.
The pre-election update also addressed financing of the general elections scheduled for this week, with Dr Ggoobi emphasising that the Ministry of Finance’s role is to ensure that adequate resources are availed to facilitate a smooth electoral process.
“I am pleased to report that since the start of financial year 2023/24, the Ministry of Finance has allocated and released a total of Shs 1,116.72 billion to the various agencies responsible for implementing the electoral roadmap,” Dr Ggoobi said.
He reaffirmed government’s commitment to continue supporting electoral institutions to ensure the elections are conducted efficiently and without financial constraints.
The release of the update is aimed at promoting transparency and accountability in public finance management, particularly during an election period when fiscal pressures often rise. It also seeks to reassure citizens, investors and development partners that Uganda’s economic fundamentals remain sound despite political transitions.
As Uganda prepares to go to the polls, the Finance Ministry’s outlook suggests that the economy is entering the election period on a relatively strong footing, with positive growth prospects and a stable macroeconomic environment expected to carry into the next financial year and beyond.
