Uganda’s Economy on Growth Track Despite Global Challenges

Genevieve Nambalirwa, Africa One News |Economy

Tuesday, August 26, 2025 at 3:35:00 PM UTC

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Uganda’s economy has maintained steady growth despite global headwinds and regional challenges, Finance Minister Matia Kasaija has announced. Speaking at a press briefing on Tuesday, Kasaija revealed that the country’s GDP grew to Shs 226.3 trillion (USD 61.3 billion) in 2024/25, up from Shs 203.7 trillion (USD 53.9 billion) the previous year.

The minister noted that growth was broad-based, cutting across agriculture, industry, and services such as ICT. He credited the resilience to government-led initiatives like the Parish Development Model, the Uganda Development Programme, and the Small Business Recovery Fund, which have stimulated economic activity and created opportunities for citizens.

Despite persistent global financial pressures and regional instability, Uganda has managed to keep inflation under control. The headline rate eased to 3.8% in July 2025, down slightly from 3.9% in June. The central bank’s consistent policy rate of 9.75% has also helped maintain stability, reinforcing investor confidence and supporting private sector growth.

Kasaija highlighted that business activity remains strong, with rising demand for goods and services, increased employment, and a positive investment climate. “Investor confidence is strong, driven by increasing business orders and favorable demand for goods and services,” he emphasized.

The Ugandan shilling has also shown resilience, appreciating by 0.5% against the US dollar in July 2025, buoyed by foreign remittances, steady corporate earnings, and inflows of foreign investment.

Concluding his remarks, Kasaija urged Ugandans to recognize the country’s positive trajectory. “The economy is moving. Ugandans should engage responsibly, invest in themselves, and take advantage of the opportunities available,” he said.

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