Uganda’s Economy Grows 6.4% Under New Development Plan

Uganda’s economy expanded 6.4% in the 2025/26 fiscal year, edging up from 6.3% the previous year as nominal GDP climbed to 250.4 trillion Ugandan shillings, according to the government’s annual report.

Finance Minister Henry Musasizi presented the figures on November 11 in an Annual Budget Performance Report to Parliament’s Committee on Budget. That growth outpaced the prior year’s rate and brought total output to 250.4 trillion Ugandan shillings.

Tax Collections Hit Annual Targets

Tax revenue climbed 14% to 34.05 trillion shillings, hitting the government’s target for the year. Total revenue and grants reached 37.99 trillion shillings.

“Government continued implementing strategic interventions aimed at increasing household incomes, promoting enterprise development and accelerating economic transformation,” Musasizi told Parliament’s Committee on Budget.

Parish Development Model Funding Reaches 92%

Authorities disbursed 92% of funding earmarked for the Parish Development Model during the fiscal year. The program channels money into small household businesses and local production.

Cumulative recoveries through the Wendi platform reached 5.466 billion shillings as of November 3, 2026.

“Government’s priority is to translate this financing into sustained production, higher incomes, improved market access and value addition,” Musasizi said.

Tenfold Growth Strategy Targets $500 Billion Economy

The fiscal results mark the first year of the Fourth National Development Plan. The framework anchors the country’s Tenfold Growth Strategy to scale output to $500 billion by 2040.

State spending prioritizes agro-industrialization, tourism, mineral-based manufacturing, and science and technology. The government also plans to expand commercial agriculture, accelerate industrialization and digital transformation, and invest in infrastructure to support businesses and industry.

Frequently Asked Questions About Uganda’s Economy

What was Uganda’s GDP in the 2025/26 fiscal year?

Nominal GDP rose to 250.4 trillion Ugandan shillings, up from 227.9 trillion shillings the previous year, according to the Ministry of Finance.

How much did tax revenues increase?

Tax collections grew 14% to reach 34.05 trillion shillings, which met the government’s annual target.

What is the target of the Tenfold Growth Strategy?

The long-term plan aims to expand Uganda’s economy to $500 billion by 2040 through investments in agriculture, tourism, mining, and technology.