The Minister of State for General Duties, Henry Musasizi, presented the Ministerial Policy Statement for the Ministry of Finance, Planning, and Economic Development (MoFPED) to Parliament’s Finance Committee, highlighting Uganda’s robust economic performance.
“The economy has demonstrated strong and broad-based growth, expanding by 8.5% in the second quarter of FY 2025/26, up from 5.4% in the same period last year,” Musasizi said.
The growth has been supported by effective economic management, strategic investments in sectors such as ICT, construction, and machinery, and prudent fiscal and monetary policies. Inflation has also eased to 2.9% in February 2026, down from 3.2% in January.
On trade, Uganda recorded a merchandise trade surplus of $147.26 million in January 2026, marking a positive turnaround from previous deficits.
Despite this, domestic revenue mobilization fell short, with net revenue collection reaching Shs16,476.07 billion against a target of Shs17,511.59 billion.
Looking ahead, Musasizi highlighted developments in the East African Crude Oil Pipeline (EACOP) project, which is now 80% complete.
The government expects to generate Shs 2.2 trillion from oil revenues in FY 2026/27, with Shs 1.4 trillion earmarked to support the national budget.
“The Government expects about Shs 2.2 trillion from oil revenues next fiscal year, of which Shs 1.4 trillion is programmed to finance the budget,” Musasizi added.
