The Minister for Finance, Henry Musasizi, has presented the Shs84 trillion national budget for the 2026/27 financial year.
The budget aligns government spending to the ATMS growth framework—Agro-industrialisation, Tourism, Manufacturing, and Science, Technology and Innovation.
The strategy is intended to accelerate economic transformation and expand Uganda’s GDP from about $50 billion to $500 billion by 2040.
The budget prioritises value addition, industrialisation and productivity growth across key sectors seen as drivers of structural economic change.
Agro-industrialisation remains the dominant pillar, receiving Shs2.26 trillion, the largest allocation ever directed to the agriculture sector.
Government says the investment is aimed at shifting agriculture from subsistence to commercial production through irrigation expansion, agro-processing, improved input distribution, and stronger market systems.
Musasizi said the focus is on the entire agricultural value chain—from production and storage to processing and distribution—with major emphasis on irrigation schemes such as Kabuyanda dam and others across the country.
Key interventions include agricultural research, anti-tick vaccine commercialisation, extension services, quality inputs, post-harvest handling, agro-processing, certification and expanded market access.
“Uganda’s future prosperity will not come from producing more raw commodities alone,” Musasizi said, noting that the goal is to transition farmers into organised commercial value chains that feed agro-industries and export markets.
Tourism has been allocated Shs567.32 billion as government seeks to strengthen Uganda’s global competitiveness under the “Explore Uganda, The Pearl of Africa” brand. The sector remains a key foreign exchange earner and job creator.
Musasizi described tourism as one of Uganda’s strongest export industries, supporting thousands of enterprises and showcasing the country internationally.
Planned interventions include global marketing campaigns, tourism infrastructure development, improved hospitality standards, construction of sanitation facilities and tourism centres along highways, conservation of wildlife, and promotion of health tourism and economic diplomacy.
Manufacturing has received Shs1.03 trillion to accelerate industrialisation and expand value-added production. Government plans to strengthen industrial parks, special economic zones, and agro-processing and mineral beneficiation.
The Uganda Development Corporation (UDC) will be further capitalised to support investments in textiles, pharmaceuticals, agro-processing and infrastructure, while presidential industrial hubs continue skills training for youth.
Officials say Uganda now has over 10,000 factories, reflecting growing industrial activity driven by both public and private investment.
“Nations achieve prosperity not by exporting raw materials but by transforming them into high-value products,” Musasizi noted.
Science, Technology and Innovation (STI) has been elevated as a central pillar of transformation, with increased investment in research, digital infrastructure and commercialisation of innovation.
Key focus areas include electric mobility, biotechnology, pharmaceuticals, space science and digital systems.
Government highlighted ongoing investments in firms such as Microhaem Scientifics, Dei BioPharma and Jena Herbals, which are strengthening local pharmaceutical production and improving health security while creating high-value jobs.
Priority STI interventions include establishment of a Hi-Tech City, expansion of digital infrastructure, growth of Business Process Outsourcing, strengthening intellectual property protection, and commercialisation of innovations such as Kiira Motors vehicles, coffee products, vaccines and banana-based industries.
Digital expansion has already reduced internet costs and boosted mobile money usage, financial inclusion and e-commerce.
Manufacturing and industrial development remain central to the agenda, with Shs1.03 trillion allocated for industrial parks, value addition, special economic zones strengthening, industrial research and regional incubation hubs.
The FY2026/27 budget marks a continued push toward industrialisation and innovation-led growth, though comparative allocations for FY2025/26 were not provided in the statement to establish year-on-year changes across the ATMS pillars.