Overview:
According to the national budget speech delivered by Finance Minister Matia Kasaija on June 12 at Kololo Independence Grounds, the government identified STI—including ICT and the creative industry—as a critical avenue for Uganda’s transformation into a knowledge-based economy.
The Ugandan government has significantly ramped up its investment in science, technology, and innovation (STI), with a budget allocation of Shs 814.2 billion in the 2025/26 financial year, a move intended to drive industrialisation, job creation, and high-tech exports.
According to the national budget speech delivered by Finance Minister Matia Kasaija on June 12 at Kololo Independence Grounds, the government identified STI—including ICT and the creative industry—as a critical avenue for Uganda’s transformation into a knowledge-based economy.
“STI provides an important avenue for the country to develop high-tech exports and add new sources of growth and jobs,” Mr Kasaija told Parliament.
Key Investments in STI
Among the headline achievements for the 2024/25 fiscal year was the completion and operationalisation of the Kiira vehicle plant in Jinja, which now produces electric and diesel buses. So far, 41 buses have been assembled—29 of them electric, with a capacity of 500 km per full charge. The plant has already signed a letter of intent to export 3,700 electric buses to West Africa, and it is expected to create more than 14,000 jobs, directly and indirectly.
In addition, the government continued its investment in pharmaceutical innovation, particularly in vaccine development and drug manufacturing. Notably, Dei BioPharma in Matugga has received a cumulative public investment of Shs 724 billion and has started producing a range of generic medicines including tablets, powders, and antifungal drugs. The facility is now licensed by the National Drug Authority.
Efforts are also underway to develop vaccines for Crimean-Congo haemorrhagic fever and Rift Valley fever, while the Alfasan vaccine plant has been accredited to manufacture anti-tick vaccines.
Research and innovation at public universities have also received a boost. For example, scientists at Makerere University developed a PCR testing kit that has been used in over 2 million tests at half the cost of imported alternatives, saving Uganda an estimated USD 37 million. Gulu University developed rapid test kits for cassava and sweet potato diseases.
Furthermore, government has invested in a coffee processing plant in Ntungamo, which will soon start producing instant, roast, and ground coffee for local consumption and export. The project is aimed at fast-tracking local value addition in the coffee sector, Uganda’s top export earner.
Budget Priorities for FY 2025/26
For the new financial year, the STI budget will focus on:
- Scaling up vaccine research and production.
- Supporting electric vehicle manufacturing and innovation.
- Enhancing development of industrial and digital technologies.
- Investing in diagnostics, therapeutics, and ICT solutions.
- Commercialising scientific innovations and supporting creative industries.
The government will also enhance partnerships with academia and industry to ensure that innovations are aligned with national priorities and translated into market-ready products.
The STI investment is part of Uganda’s broader strategy to accelerate economic growth through industrialisation, commercial agriculture, digital transformation, and value addition. Minister Kasaija said the budget aligns with Uganda’s Vision 2040 and the upcoming Fourth National Development Plan (NDP IV), which prioritises a knowledge-driven economy.
The government believes that science-led development will be essential for job creation, self-sufficiency in health and food systems, and building competitive industries in the global market.