Finance Ministry Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi has strongly pushed back against sceptics of Uganda’s economic progress, declaring it “foolhardy” for anyone to dismiss the country’s growth trajectory.
His remarks were made on Friday at the 5th edition of the Absa Post-Budget Forum, a high-level annual engagement that brings together key stakeholders from government, the private sector, development partners, academia and the media to unpack the implications of the national budget following the Thursday reading.
“What do you see about inflation, about the exchange rate, about availability of the foreign exchange in the country, about the growth of economic activity itself? The economy is doing well at a macro level and it’s only someone who’s not actually very honest and goodwill who can say any different,” said Ggoobi.
This comes as government revealed a series of macroeconomic milestones and fiscal measures with positive potential for the private sector as the GDP stands at USD 69.3 billion today. The economy is projected to grow by to 10% in FY2026/27, which would translate into an expansion of approximately USD 80 billion.
Notably, the projected 10% growth is expected before the commencement of commercial oil production, positioning oil as an additional catalyst for expansion.
On the trade front, Uganda’s exports reached USD 18 billion in the 12 months ending March 2026, with the country having added 31 new products to its export basket over the last 15 years, including pharmaceuticals, refined gold, steel products, ICT products, ceramics, plastics and dairy products.
Absa Uganda Chief Finance Officer, Michael Segwaya also acknowledged the encouraging macro environment while urging all stakeholders to focus on converting this momentum into tangible outcomes for the economy.
During the panel discussion at the forum, Segwaya said, “Every national budget tells a story. Beyond the numbers, it reflects the choices a country is making about its future, the opportunities it seeks to unlock and the challenges it is prepared to confront.
Segwaya added, “Optimism alone is not enough. The real question is how we convert this moment into lasting impact for businesses, households and communities across the country.”
Ggoobi also reminded the audience that the largest share of government revenue is generated through taxation, making economic growth and compliance critical to funding national priorities. He explained that approximately 95% of the budget has been allocated towards what he termed the “ATMs of the economy i.e Agriculture, Technology (ICT) and Manufacturing as the most productive sectors along with their enablers, with a renewed emphasis on implementation discipline to ensure that planned outcomes are actually delivered on the ground.
He also highlighted key measures introduced to strengthen budget discipline and accountability, including a requirement for Accounting Officers to sign a Budget Discipline and Accountability Charter, a move designed to reinforce personal responsibility for the management of public resources.
The planned reduction in domestic borrowing from UGX 11.4 trillion to UGX 9.0 trillion is a welcome step toward fiscal consolidation as this should ease pressure on local credit markets and support more affordable capital for businesses.
Equally significant is the substantial increase in allocations for clearing domestic arrears from UGX 200 billion to UGX 1.4 trillion aimed at providing much-needed liquidity to SMEs, contractors, and suppliers, strengthening business confidence and continuity. GDP per capita now standing at USD 1,278 above the USD 1,136 threshold for Lower Middle-Income Country status.
On energy, Uganda’s electricity generation capacity has grown from 60MW in 1986 to 2,098MW, with a long-term ambition of reaching 50,000MW through a diversified mix of hydro, solar, gas, wind, nuclear and geothermal sources.
To support affordable financing, the government has capitalised the Uganda Development Bank with approximately UGX 1.6 trillion, offering lending rates of 12% per annum, while the Parish Development Model is providing loans at 6% interest to approximately 3.7 million households.
