Uganda posts strongest balance of payments surplus in 15 years

KAMPALA — Uganda has recorded a surplus balance of payments of USD 2.37 billion, the highest in the last 15 years, signalling strong economic fundamentals in an election year, Permanent Secretary to the Treasury Dr. Richard Ggoobi has said.

Appearing on NBS TV on Thursday, Dr. Ggoobi said the country has enjoyed a stable inflation rate, a strengthened shilling, and continued investor confidence, with foreign capital inflows totaling USD 3.5 billion in foreign direct investment (FDI) and USD 1.7 billion in portfolio investment. Tourism revenues contributed USD 1.8 billion, while remittances brought in USD 1.5 billion.

“The main source of this strength is the financial account,” Dr. Ggoobi said, noting that the performance reflects a vote of confidence in Uganda’s economy. Export receipts — both merchandise and services — reached USD 14.4 billion by the end of September 2025. According to Dr. Ggoobi, export diversification beyond traditional products such as coffee has expanded the nation’s trade, with 34 new products added to the export basket in the last 15 years.

He also reassured the public that election-year spending will not destabilize the economy, emphasizing that the money circulating is already accounted for in the economic base and that Uganda has strengthened capacity to prevent illicit financial flows.

On the oil front, Dr. Ggoobi said Uganda expects its first oil production in the second half of 2026, with revenues earmarked for infrastructure development, including roads, electricity, railways, and industrial parks.

He further addressed the status of Uganda Airlines, announcing that a turnaround in management is underway and that a new CEO will soon be recruited to improve services.

Looking ahead, Dr. Ggoobi said the 2026/27 national budget and the National Development Plan IV will prioritize infrastructure, revenue mobilization, and enabling sectors to sustain economic growth and public confidence.

“The economy has had a comfortable year contrary to public perceptions,” he said, highlighting the stability of Uganda’s economic fundamentals and the resilience of its financial systems.