Overview:
Leveraging Uganda’s strategic location in Africa, particularly within the East African Community (EAC), the strategy aims to position the country as a leading investment, trade, and tourism hub.
The government of Uganda has released Shs17.18 trillion as expenditure for the first quarter of the 2025/2026 financial year, marking 23.7 percent of the approved budget and signalling the official start of implementing the ambitious Ten-Fold Growth Strategy.
This strategy aims to rapidly transform Uganda’s economy into a sustainable, inclusive, and high-growth powerhouse, targeting double-digit GDP growth by 2040. The government plans to expand the export basket, boost tourism, consolidate human and natural capital, and develop a knowledge-based economy driven by technological innovation.
Leveraging Uganda’s strategic location in Africa, particularly within the East African Community (EAC), the strategy aims to position the country as a leading investment, trade, and tourism hub.
At the release ceremony, the Permanent Secretary of the Ministry of Finance, Planning, and Economic Development (MoFPED) and Secretary to Treasury, Mr. Ramathan Ggoobi, emphasized the need for technical efficiency and prudent financial management across government ministries, departments, agencies, and local governments. He reiterated the commitment to timely payment of salaries, pensions, and gratuities by the 28th of every month, and stressed strict adherence to budget limits to avoid accumulating domestic arrears and penalties. Mr. Ggoobi highlighted the critical importance of ensuring that contracts and payments are executed in Uganda shillings and within budgetary provisions.
Breaking down the expenditure, statutory obligations received Shs2.26 trillion for government wages and salaries, alongside Shs482.7 billion for pensions and gratuities. Parliament was allocated Shs249.38 billion, while the Electoral Commission received Shs468.72 billion.
The Judiciary was given Shs47.37 billion, the Auditor General Shs19.14 billion, and the National Planning Authority Shs53.72 billion, underscoring the government’s focus on maintaining core institutional functions. Agro-industrialisation, a key pillar of the Ten-Fold Growth Strategy, secured Shs215.28 billion, with Shs62.41 billion earmarked for research and operations, and Shs152.86 billion for development projects. Tourism development received Shs20.5 billion, directed to the Ministry of Tourism, Wildlife, and Antiquities, as well as the Uganda Tourism Board.
In the minerals sector, including oil and gas, Shs26 billion was released, divided between the Ministry of Energy and Mineral Development (Shs19.5 billion) and the Petroleum Authority of Uganda (Shs6.5 billion), excluding funds retained by the Uganda National Oil Company. Science, Technology, and Innovation sectors garnered Shs139.13 billion to support ICT, creative industries, and innovation-driven development, with a significant portion allocated to artists and the Ministry of Gender, Labour, and Social Development.
Security remains a top priority, with the Ministry of Defence and Veteran Affairs receiving Shs719.12 billion, Uganda Police Force Shs130.73 billion, and Uganda Prisons Service Shs87.15 billion, alongside other security-related agencies. Infrastructure development also featured prominently, with Shs1.076 trillion released to the Ministry of Works and Transport, including Shs942.9 billion allocated to contractors for ongoing projects.
The Ministry of Energy and Mineral Development received Shs420.76 billion, largely focused on rural electrification and power generation projects such as Karuma. Kampala Capital City Authority was allocated Shs148.32 billion for urban development projects including roads and drainage.
On human capital development, the Ministry of Education and Sports was allocated Shs143.75 billion to support non-wage recurrent activities and educational projects such as the Uganda Secondary Education Expansion Project (USEEP). Public universities and tertiary institutions received Shs157.73 billion to support their operations and development plans.
The Ministry of Health was given Shs262.88 billion, with a major focus on health infrastructure development, vaccine procurement through the Global Alliance for Vaccines and Immunization (Gavi), and ongoing health programs. The National Medical Stores received Shs173.96 billion to purchase essential medicines.
Social development initiatives were also supported, with the Ministry of Gender, Labour, and Social Development receiving Shs118.23 billion, including Shs83.64 billion for operational costs and social protection programs like the Social Assistance Grants for Empowerment (SAGE). The Uganda Cancer Institute and Uganda Heart Institute were allocated Shs80.18 billion for contractual and operational expenses, while regional referral hospitals such as Mulago and Butabika received Shs40.99 billion primarily for non-wage recurrent costs. Local governments received Shs382.03 billion, most of which (Shs342.52 billion) covers operational expenses, while Shs39.5 billion funds projects with contractual obligations.
Despite the significant budget release, challenges persist in project management and implementation at the local government level, including delays, limited supervision, and unfinished construction projects, according to Dr. Arthur Bainomugisha, Executive Director of the Advocates Coalition for Development and Environment (ACODE). He noted that these issues undermine the impact of government investments despite ongoing efforts to improve public investment systems.
Economically, Uganda continues to demonstrate resilience amid global uncertainties such as trade wars and international conflicts. The country achieved an average growth rate of 6.9 percent during the first three quarters of the previous financial year. Inflation remains subdued and within the government’s target range, recording 3.9 percent in June 2025, a slight increase from 3.8 percent in May. The Uganda shilling has strengthened against the US dollar, reflecting a stable currency environment.
Uganda’s export sector showed impressive growth, with total earnings for the third quarter of FY 2024/2025 reaching $2.6 billion (approximately Shs9.32 trillion), representing a 39.1 percent increase compared to $1.9 billion (Shs6.81 trillion) in the same period the previous year. This surge is attributed to higher volumes and prices of key export commodities like coffee and cocoa, which more than doubled within the year.
Foreign direct investment and remittances also play a crucial role in Uganda’s economy. The country ranks among the top ten African nations receiving remittances, with $304.48 million (Shs1.09 trillion) recorded in the third quarter of FY 2024/2025, up from $231.68 million (Shs835 billion) in the corresponding quarter of the previous year. These inflows are vital for supporting household incomes and economic stability.
The first quarter budget release for FY 2025/2026 underscores Uganda’s commitment to implementing the Ten-Fold Growth Strategy through targeted investments in infrastructure, human capital, industrialization, security, and social services. While challenges remain, particularly in project execution and local government capacity, the government’s strategic focus and fiscal discipline aim to catalyze transformative economic growth and position Uganda as a competitive regional player by 2040.