Uganda's Economic Growth Prospects Strengthened by Oil Production

Uganda's economic growth prospects have strengthened due to improving macroeconomic stability, stronger foreign exchange reserves, and anticipated oil production. Economist Stella Otieno told a recent Equity Bank Uganda trade and investment webinar that the country has sustained economic growth of more than six percent over the past three financial years.

Inflation has remained within the Central Bank's target range, and policy rates have been stable, providing a predictable environment for investors. Otieno said real GDP growth for the 2025/26 financial year was about six percent, while inflation stood at four percent in July, below the medium-term target of five percent.

The anticipated start of oil production is expected to be a major catalyst for growth, with Otieno projecting that economic growth could accelerate to between eight and ten percent in the 2026/27 financial year. Oil revenues are also expected to strengthen the country's fiscal and external positions.