Uganda: Museveni – Uganda’s Economy to Double to $150 Billion

Kampala — President Yoweri Museveni has assured Ugandans that the country is now unstoppable in terms of economic growth and socioeconomic transformation and will in the next five years be a 500 billion dollar economy.

“What I have said in this long speech is that Uganda is now unstoppable in terms of economic growth and socioeconomic transformation. Our security apparatus is also robust. All this is in spite of the mistakes of the careerists that infiltrated the civilian echelons of the NRM and even within the UPDF to some extent,” Museveni said.

Delivering his State of the Nation Address, which also launches the fifth and last session of the current (11th) Parliament, the President also projected that in purchasing power parity, the economy will reach $296 billion by 2030.

By the end of this financial year (end of June 2025) the size of the economy is estimated at 60 Billion Dollars, up from $53.6 Billion (202.7 Trillion Shillings)

“The fast economic growth I talked about in the Economy, is on account of four factors. These are: the correct philosophical, ideological and strategic positions of the NRM as already pointed out; the NRM/UPDF that liberated the country and has ensured peace eversince; the wealth creators in the four sectors of Agriculture, Manufacturing (industries), Services and ICT; and the responsible political actors in the NRM and others that have contributed to harmony,” he said.

The President attributed this growth to strategic investments in infrastructure, value addition and industrialization aimed at transforming Uganda into a modern, self-sustaining economy.

This was supported by the growing export earnings, which are said to have reached $11.1 Billion by March 2025, a growth of 9.3 percent.

The exports were led by gold with 3.7 billion, coffee 1.8 billion, cocoa 410 million, milk 285 million, metal products which earned 230 million, fish 177 million and sugar 190 Million Dollars .

Uganda’s bilateral trade with Algeria and Nigeria, especially with Uganda exporting milk products there, has resulted in an increase in the value of milk and milk products from $28.7 million in financial year 2014/2015 to $285 Million in 2024, according to official figures.

Tourism earnings rose to $1.4 billion in 2024 showing a significant recovery from the 5.62 million in the COVID19-hit 2020. Museveni attributed the current good performance of the sector to the sustainable peace and security in the country.

He also hailed the growing manufacturing industry with the country now producing and exporting electronics, pharmaceuticals, solar energy products, new tires, batteries, and measuring instruments.

Some of the new products include electronics at the Namanve Industrial Park, with a company producing 120,000 hair dryers and 60,000 refrigeration parts annually, while pharmaceutical companies are producing 4 million single HIV pills and 2 million other medicines per year.

However, it will take more than that to achieve the projection.

Museveni said with the projected growth at 6.3 percent this financial year and being the seventh fastest growing in the world according to the International Monetary Fund, further growth is expected when oil and gas production and exportation starts in 2027.

The government is forecasting 7 percent growth next year and double-digit rates in the subsequent years.

He promised that, “During the Budget speech, I will talk about two issues: corruption and the East African Federation. In spite of these mistakes and the external meddling, as you have seen, Uganda is unstoppable. Why? It is on account of our correct positions on philosophy, ideology and strategy and the fear of God.”

“Therefore, the malignment notwithstanding, Uganda is moving forward. It is now irreversibly a middle-income country with a GDP per capita of USD 1,263 as already pointed out. It is number 7 among the fastest growing countries in the whole world (Source: IMF). It is growing at 6.3% per annum, it is projected to be 7% next year 2025/2026 and will grow in double digits after oil. ”

He cited the signing of a memorandum of understanding with Alpha MBM Investments LLC from the United Arab Emirates to start the construction of the oil refinery in Hoima, as well as the ongoing construction of the 1,440-kilometre crude oil export pipeline, vital infrastructure for the commercialisation of the sector.

He also acknowledged the role of scientists for their active role in developing automobiles, vaccines, electronics, among others, noting that the electric mobility industry lead by Kira Motors would be another factor in the growth of the economy.

Another government strategy, he said, was investing in tourism, not only by growing tourist numbers, but their spending in the country.

The priorities for the tourism sector will include branding Uganda as a top destination, improving infrastructure and sanitation at key sites, building highway refreshment centers, and improving tourism security.

The President also launched the Fourth National Development Plan that will be the blueprint for economic progress, taking effect next financial year.

On job creation, Museveni said manufacturing would be key in ensuring that the high numbers of graduates annually are catered for, since the government cannot provide more than half a million positions.

It is one of the reasons, he said, he banned the exportation of raw minerals, which has seen the establishment of processing plants especially for gold, steel and cement.

The ban on unprocessed mineral exports is a strategic step towards promoting industrialization and adding value to the nation’s resources, he said, adding that exporting raw materials had been Africa’s biggest problem.

“This means we are donating all the benefits, such as jobs and money to other countries.”

Growth will also be supported by the ongoing investments into agriculture modernisation, especially in expanding irrigation.

Modernisation of agriculture is vital for not only expanding production and productivity, but also helping reduce the number of households still in subsistence agriculture.

It is now estimated by that 33 percent of Ugandans are still outside the money economy, mainly in agriculture, down from 39 percent in 2019/2020.

“In 1986, over 90 percent of Uganda’s population relied solely on subsistence farming, producing just enough for survival without surplus for trade. Today, that number has significantly dropped to 33 percent, reflecting substantial progress in economic transformation,” he said.

The President said the ongoing implementation of wealth creation programmes like Emyooga and Parish Development Model will not only grow the economy but also greatly improve the livelihoods of many Ugandans.

Museveni reiterated that the government is aiming at making Uganda a 500-Billion Dollar economy by 2040, and this will be possible by prioritizing peace and security, accelerating industrialisation using local materials, promoting exports, strengthening the private sector, skilling the youth, widening the tax base, transforming households and fighting corruption.

By Independent (Kampala).