Economic and Political Overview

flag Uganda Uganda: Economic and Political Overview

In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

 

Economic Indicators

Uganda is the third-largest economy in East Africa, after Kenya and Tanzania. The country has achieved astonishing economic performances in the last decades and, although slower, growth remains sustained. Uganda has navigated the post-pandemic recovery well and remained resilient amid global economic challenges, with growth rising to 6.1% in FY24 from 5.3% the year before. This was driven by broad-based expansion in services (43.1% of GDP) and industry (24.9%), supported by stronger net exports—particularly coffee and gold—greater oil sector investment, and easing global supply chain pressures. According to the World Bank, growth is projected to rise slightly to 6.2% in FY25, led by agriculture and services. Over the medium term, it is expected to accelerate to 10.4% by FY27 with the start of oil production, before stabilising around 6% as output levels off. While oil sector developments are set to drive growth, global trade policy uncertainty and falling commodity prices could weigh on investment and economic performance.

Regarding public finances, Uganda’s fiscal deficit narrowed slightly to 5.1% of GDP in FY24 from 5.2% in FY23, reflecting ongoing consolidation driven mainly by cuts to capital spending. The primary deficit declined to 1.6% but remains affected by weak tax revenue performance, partly due to poor enforcement of the electronic fiscal receipting system. The quality of consolidation remains a concern, with essential social programmes impacted. The deficit was largely financed domestically. The primary balance is expected to worsen to -2.3% in FY25, then gradually improve to a 0.1% surplus by FY27. Efforts to boost domestic revenue—focusing on tax administration and fairness rather than rate increases—are projected to raise tax revenue by 0.5% and 1.3% of GDP in FY25 and FY26, respectively. Public debt is forecast to rise to 52.7% of GDP in FY25, then decline to 51% by FY27 (data World Bank). Headline and core inflation dropped to 3.2% and 3.0%, respectively, in FY24, down from 8.8% and 7.4% in FY23, remaining below the Central Bank’s 5% target. The decline was driven by favourable weather lowering food prices, global economic easing, exchange rate stability, and tight monetary policy. Core inflation is projected to rise to 3.7% in FY25 and reach 5% in FY26. As per the World Bank, Uganda’s key challenges include a persistent human capital gap and the absence of a robust productive jobs strategy amid a growing working-age population. While services dominate the economy, they generate fewer jobs than agriculture, which employs two-thirds of the workforce but suffers from low productivity, limited modernisation, and vulnerability to climate shocks. Moreover, climate adaptation efforts remain insufficient.

According to the National Bureau of Statistics, the unemployment rate stood at 12.3% as of 2024. Poverty at the international poverty line (USD 2.15 in 2017 PPP) was estimated at 41.3% in the same year and is projected to decline slightly in FY25, with a faster reduction expected as economic growth strengthens in the medium term. If oil revenues are effectively invested in social services, infrastructure, and human capital, poverty could drop to 38% by 2027. Lastly, the country’s GDP per capita (PPP) was estimated at USD 3,683 in 2024 by the IMF.

 
Main Indicators 2023 (E)2024 (E)2025 (E)2026 (E)2027 (E)
GDP (billions USD) 51.0955.5962.9272.4378.17
GDP (Constant Prices, Annual % Change) 4.65.97.512.36.2
GDP per Capita (USD) 1,1231,1871,3041,4501,497
General Government Gross Debt (in % of GDP) 51.051.450.344.841.7
Inflation Rate (%) 5.43.54.44.95.0
Current Account (billions USD) -3.77-3.67-4.17-1.61-1.86
Current Account (in % of GDP) -7.4-6.6-6.6-2.2-2.4

Source: IMF – World Economic Outlook Database , Latest available data

Note: (e) Estimated Data

Main Sectors of Industry

Uganda has considerable natural resources, including fertile soils, regular rainfall, significant reserves of recoverable oil, and small deposits of copper, gold, cobalt, limestone, and other minerals. Agriculture is the leading sector of the economy, employing 65.9% of the workforce and accounting for 24.1% of the GDP. As per the Food and Agriculture Organization, Uganda possesses fertile agricultural land that can sustainably feed 200 million people. Despite 80% of Uganda's land being arable, only 35% is presently under cultivation. The country boasts a diverse range of agricultural products, including coffee, tea, sugar, livestock, fish, edible oils, cotton, tobacco, plantains, corn, beans, cassava, sweet potatoes, millet, sorghum, and groundnuts. However, the full commercial potential of the sector is hindered by farmers' limited access to fertilizer and high-quality seeds, as well as a lack of irrigation infrastructure, leaving production susceptible to adverse weather conditions and pest outbreaks. As per data by FAO, the agricultural growth rate in FY 2023/24 was 5.1%, driven by increasing production and private sector investments.

The country’s industrial sector is small and is dependent on imported inputs such as refined oil and heavy equipment. A number of supply-side constraints, including insufficient infrastructure, lack of modern technology, and corruption, hamper productivity. The sector contributes to 25.8% of GDP but employs only 7.1% of the workforce. The most important subsectors are the processing of agricultural products, the manufacture of light consumer goods and textiles, and the production of beverages, electricity, and cement. Most industries are small, local firms with limited manufacturing added value, while the larger industries in the country are predominantly foreign-owned. The manufacturing sector as a whole accounts for 16% of GDP (World Bank).

The services sector in Uganda represents 42.5% of GDP and employs 27% of the active population; however, it is detached from primary sectors like agriculture and manufacturing, thus lacking the ability to spur economic growth. ICT is one of Uganda’s fastest-growing sectors, recording double-digit growth over the last few years, largely driven by the telecommunications sector. Concerning the tourism sector, available data indicates that international tourist arrivals jumped by 7.7% in 2024, climbing from 1,274,210 in 2023 to a remarkable 1,371,895 visitors. This surge in arrivals has led to a record-breaking revenue for the tourism sector, reaching USD 1.28 billion (+26% y-o-y), supported by extended visitor stays and greater tourist expenditure.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 65.9 7.1 27.0
Value Added (in % of GDP) 24.1 25.8 42.5
Value Added (Annual % Change) 4.5 4.0 5.9

Source: World Bank - Latest available data.

 

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Monetary Indicators 20162017201820192020
Uganda Shilling (UGX) - Average Annual Exchange Rate For 1 MUR 96.23104.73109.83105.2694.42

Source: World Bank - Latest available data.

 
 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
58,6/100
World Rank:
106
Regional Rank:
14

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

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Foreign Trade in Figures

Uganda is open to foreign trade, which accounts for one-third of its GDP (World Bank). The country is a member of numerous international organizations, such as the WTO, COMESA, EAC (East African Community), ESAAMLG (anti-money laundering group in Eastern and Southern Africa), and IGAD (Intergovernmental Authority for the Development of the Horn of Africa States). In 2023, Uganda’s top exports were gold (44.4% of total exports), coffee (13.9%), refined petroleum (1.9%), dried/salted/smoked/brined fish (1.4%), and cement (1.3%); whereas the main imports were refined petroleum (16.8%), gold (15.8%), packaged medicaments (2.9%), palm oil (2.8%), and cars (2.4% - data OEC).
 
 In the same year, the main export destinations were India (21.1%), United Arab Emirates (15.9%), Hong Kong (10.2%), South Sudan (7.5%), and Kenya (6.2%), with imports coming chiefly from China (19.3%), United Arab Emirates (12.1%), Tanzania (11.3%), India (10.3%), and Kenya (7.4%). The country's trade policy aims to encourage cooperation and integration in East Africa to stimulate production and increase export earnings. Tariffs are not very high and the country has few non-tariff barriers to trade. However, corruption and underdeveloped infrastructure remain major obstacles to trade. The political situation in South Sudan, one of the country's main trading partners with Kenya, continues to affect trade flows.

Uganda's trade balance is structurally in deficit. In 2023, exports of goods almost doubled to USD 6.16 billion (from 3.77 one year earlier), while imports reached USD 12.15 billion (+24.9% y-o-y). As for services, exports totalled USD 2.05 billion, while imports amounted to USD 3.59 billion. The overall trade balance was estimated to be in deficit by 10.1% of GDP by the World Bank (compared to 10.5% one year earlier).

 
Foreign Trade Indicators 20192020202120222023
Imports of Goods (million USD) 7,6968,2519,0869,73212,159
Exports of Goods (million USD) 3,5644,1493,9653,7726,162
Imports of Services (million USD) 2,9453,1113,1463,1983,591
Exports of Services (million USD) 2,0761,1601,7371,8402,049
Imports of Goods and Services (Annual % Change) 7.10.418.9-7.0-4.4
Exports of Goods and Services (Annual % Change) 4.3-1.20.2-19.70.3
Imports of Goods and Services (in % of GDP) 22.321.625.922.521.7
Exports of Goods and Services (in % of GDP) 17.115.415.812.011.6
Trade Balance (million USD) -2,755-2,637-3,046-3,673-3,149
Trade Balance (Including Service) (million USD) -3,623-4,587-4,389-4,964-4,768
Foreign Trade (in % of GDP) 39.437.041.734.533.3

Source: WTO – World Trade Organisation ; World Bank , Latest Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2021
United Arab Emirates 26.8%
Kenya 13.3%
South Sudan 12.2%
Democratic Republic of Congo 8.6%
Italy 5.3%
See More Countries 33.9%
Main Suppliers
(% of Imports)
2021
China 18.2%
India 11.6%
Tanzania 9.0%
United Arab Emirates 8.9%
Kenya 8.5%
See More Countries 43.8%

Source: Comtrade, Latest Available Data

 
 

Main Products

4.0 bn USD of products exported in 2021
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 26.0%
Coffee, whether or not roasted or decaffeinated;...Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion 18.1%
Cocoa beans, whole or broken, raw or roastedCocoa beans, whole or broken, raw or roasted 2.7%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.5%
Dried leguminous vegetables, shelled, whether or...Dried leguminous vegetables, shelled, whether or not skinned or split 2.5%
See More Products 48.2%
9.1 bn USD of products imported in 2021
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 13.6%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 12.0%
Palm oil and its fractions, whether or not refined...Palm oil and its fractions, whether or not refined (excl. chemically modified) 4.0%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.2%
RiceRice 2.5%
See More Products 64.7%

Source: Comtrade, Latest Available Data

 
 

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Main Services

Source: United Nations Statistics Division, Latest Available Data

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Sources of General Economic Information

Ministries
Official list of ministries
Ministry of Finance, Planning and Economic Development
Ministry of Agriculture, Animal Industry and Fisheries
Ministry of Energy and Mineral Development
Ministry of Commerce, Industry and Cooperatives
Ministry of Water and the Environment
Ministry of Tourism, Wildlife and Antiquities
Statistical Office
Uganda Bureau of Statistics – UBOS
Central Bank
Bank of Uganda
Stock Exchange
Uganda Securities Exchange (USE)
Search Engines
Google Uganda
Uganda Business Directory
Data.ug
Economic Portals
Financial Times
Uganda Business News

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Political Outline

Current Political Leaders
President - Gen. Yoweri Kaguta Museveni (since 29 January 1986)
Prime Minister - Robinah Nabbanja (since 21 June 2021)
Next Election Dates
Presidential: 2026
Legislative: January 2026
Main Political Parties
In 2005, Ugandans held a referendum and voted for a return to multi-party politics. Before that, only one political organisation, the National Resistance Movement, was allowed to operate in the country.
However, the National Resistance Movement (also known simply as the Movement) is still the ruling political party in Uganda. The party was originally founded as a liberation movement to oppose dictatorial regimes. In the 2021 general election, the Movement obtained 336 out of 529 seats.
Other major parties include the National Unity Platform (the main opposition party, centre-left, with 57 seats in the Parliament), the Forum for Democratic Change (opposition party, centre-right, 32 seats); the Democratic Party (moderate conservative, with 9 seats in the Parliament) and the Uganda People's Congress (which also holds 9 seats in the Parliament).

Other minor parties in the country are: Justice Forum (JEEMA), People's Progressive Party (PPP), and Alliance for National Transformation (ANT).

Type of State
Uganda is officially a Republic with a multiparty system, but its political landscape is heavily influenced by the military.
Executive Power
The Ugandan President holds executive power; he assumes the functions of head of state, head of government, and commander-in-chief of the armed forces. The President is responsible for the appointment of Cabinet, as well as the implementation and enforcement of laws drafted by Parliament. The president is elected for a five-year term, with the possibility of reelection without any term limits.
Legislative Power
According to the 1995 Constitution, legislative power in Uganda is vested in both the government and the unicameral Parliament. The term of Parliament is five years, though an earlier attempt to extend it to seven years was later invalidated by the Constitutional Court. Currently, the Ugandan Parliament is composed of 556 members: 353 are elected through first-past-the-post voting in single-member constituencies, 146 are reserved for women district representatives, and the remaining 30 seats are allocated to special interest groups. These include 10 representatives from the Uganda People’s Defence Forces, 5 from youth, 5 from people with disabilities, 5 from workers' unions, and 5 from older persons. Each of these groups must elect at least one woman, except for the Defence Forces group, which must have at least two women.
 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
125/180
 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Partly Free
Political Freedom:
6/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

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Latest Update: May 2025