The Ministry of Finance, Planning, and Economic Development has announced the release of funds for the fourth quarter (Q4) of the 2024/25 financial year, alongside a positive outlook on Uganda’s economic performance. The press statement, delivered by Permanent Secretary Ramathan Ggoobi, highlights strong GDP growth, stable inflation, and a resilient external sector, underpinned by strategic investments in key sectors.
Ramathan Ggoobi said that this growth is mainly attributed to increased manufacturing activity, food production, as well as wholesale trade and transport activities.
Uganda’s economy continues to expand, with GDP growth rates of 6.7% and 5.3% in the first and second quarters of FY 2024/25, respectively. The government projects an annual growth rate of 6.4%, driven by manufacturing, agriculture, and services. High-frequency indicators such as the Purchasing Managers’ Index (PMI) and Business Tendency Index (BTI) reflect optimism, with PMI at 52.6 (above the 50 benchmark for expansion) and BTI at 59.39.
Inflation has eased to 3.4% in March 2025, supported by lower food prices and stable transport costs. The Ugandan shilling has also demonstrated remarkable stability, appreciating by 0.3% against the US dollar in March 2025 and emerging as Africa’s best-performing currency in 2024 with a 6.1% gain.
Export earnings rose by 12.1% to USD 2.17 billion in Q2, fueled by higher coffee prices and increased shipments of minerals, fish, and electricity. Foreign Direct Investment (FDI) surged by 20.6%, reaching USD 902.59 million, largely due to oil and gas sector investments. Remittances grew modestly by 1.1% to USD 355.60 million.
Domestic revenue collection stood at Shs 22.379 trillion by March 2025, slightly below the target of Shs 22.516 trillion. The Uganda Revenue Authority (URA) aims to collect Shs 9.37 trillion in Q4 to bridge the gap.
The allocation of Uganda’s Q4 budget, totaling Shs 19.79 trillion (25.64% of the revised budget), highlights a strategic approach to balancing fiscal responsibility and development objectives. The significant allocation to debt and treasury operations (Shs 8.126 trillion) underscores the importance of managing financial obligations, while investments in sectors like infrastructure (Shs 2.11 trillion), agro-industrialization (Shs 524.68 billion), and the Parish Development Model (Shs 529 billion) reflect a commitment to stimulating economic growth and improving livelihoods.
The government reiterated its commitment to fiscal discipline, urging accounting officers to prioritize timely salary payments and settle arrears to avoid penalties. The statement also emphasized compliance with budget transparency initiatives, directing stakeholders to the ministry’s website and call center for detailed information.
Uganda’s economy remains on a steady growth trajectory, supported by prudent policies and strategic investments. The Q4 releases aim to sustain momentum in critical sectors while ensuring service delivery and fiscal accountability. As the financial year concludes, the focus remains on achieving inclusive growth and leveraging opportunities in oil, agriculture, and technology to drive long-term prosperity.