By David Rupiny
Uganda’s Minister of Finance, Planning, and Economic Development, Matia Kasaija, has revealed that Foreign Direct Investment (FDI) amounted to 3.30 billion dollars in 2024, up from 2.99 billion dollars in 2023, largely hinged on the developments in the oil and gas sector.
While briefing the country on the state of the economy, Minister Kasaija said the size of the economy has expanded to 61.3 billion dollars, up from 53.9 billion dollars in financial year 2023/2024.
The Minister said Uganda’s economy has continued to grow steadily despite global, regional, and domestic challenges, with significant gains in exports, tourism, investment, and overall economic performance.
Here are the 15 highlights of the state of the economy:
- In FY 2024/25, the size of the economy expanded to UGX226.3 trillion (61.3 billion dollars) from UGX203.7 trillion (53.9 billion dollars) in FY 2023/24.
- GDP per capita also increased from 1,159 dollars in FY2023/24 to 1,263 dollars in FY2024/25.
- In real terms, GDP grew by 6.3 percent compared to 6.1 percent in the previous financial year.
- As of July 2025, Uganda’s economy was characterized by stable inflation, increased private sector activity, a stronger and stable shilling, and prudent fiscal and monetary management.
- Inflation has been well-managed, with headline inflation easing to 3.8 percent in July 2025 from 3.9 percent in June 2025.
- To maintain inflation within the medium-term target of 5 percent, the Central Bank Rate (CBR) was maintained at 9.75 percent for the tenth consecutive month in July 2025.
- Economic indicators point to a vibrant economy with growing activity and positive business sentiments.
- Uganda’s currency continues to be competitive against the US Dollar. The Shilling appreciated by 0.5 percent in July 2025. The Shilling has been ranked the most stable currency in Africa by the International Financial Statistics Division of the International Monetary Fund (IMF).
- Over the last 15 years, 32 new export products have emerged comprising majorly manufactured goods – processed foods, ceramic tiles, veneer sheets, soya bean residues, manufactured tobacco, fireboard, butter, casein, gelatine, hair products, steel products, etc.
- The proportion of people living below the poverty line reduced from 20.3 percent in FY 2019/20 to 16.1 percent in FY 2023/24.
- Foreign Direct Investment (FDI) amounted to 3.30 billion dollars in 2024, up from 2.99 billion dollars in 2023, largely hinged on the developments in the oil and gas sector.
- Life expectancy of Ugandans has increased from 63.7 years to 68.9 years (Source: Uganda Bureau of Statistics).
- In the last 12 months ending June 2025, merchandise exports surged by 64.3 percent to 1.15 billion dollars, up from 702.5 million dollars in June 2024, due to higher receipts from export items such as coffee, mineral products, tea, fish and flowers, among others.
- Tourism inflows grew to 1.52 billion dollars in 12 months to March 2025, up from 1.36 billion dollars during the same period in 2024.
- The economy is projected to grow faster by at least 7.0 percent in this current Financial Year 2025/26, and to double digits in the medium-term following commencement of oil and gas production.
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