Uganda’s tourism sector continues to shine as a key driver of economic growth, registering a 13.1% increase in earnings to Shs5.8 trillion) in the 12 months leading to March 2025 up from Shs5.2 trillion during the same period in 2024.
The development was announced by Finance Minister Matia Kasaija while delivering the national budget speech for the 2025/26 financial year at Kololo Independence Grounds on Thursday, June 12.
Minister Kasaija attributed the growth to sustained peace, increased competitiveness in the tourism industry, and government investment in strategic tourism infrastructure across the country.
He also noted that Uganda’s diverse attractions from wildlife safaris and bird watching to cultural and adventure tourism continue to attract a growing number of visitors.
“Uganda’s tourism earnings are rising due to improved infrastructure, peace and security, and enhanced service delivery within the tourism and hospitality sectors,” Kasaija said. “We remain committed to positioning Uganda as a premier destination in Africa.”
Tourism remains one of Uganda’s leading foreign exchange earners and a major employer, supporting hundreds of thousands of livelihoods.
The sector contributes significantly to rural economies through jobs in accommodation, transportation, guiding services, crafts, and food supply chains linked to tourism activity in national parks and heritage sites.
In addition to the growth in tourism earnings, remittances from Ugandans living and working abroad also increased. In the 12 months ending March 2025, remittances reached USD 1.4 billion (about Shs5.3 trillion), compared to USD 1.33 billion (Shs5 trillion) in the same period in 2024.
These inflows play a critical role in household income, supporting health, education, housing, and business start-ups, especially in urban and peri-urban areas.
Foreign Direct Investment (FDI) also saw notable growth, underscoring Uganda’s economic resilience and attractiveness to investors.
FDI inflows rose to Shs13.3 trillion by March 2025, up from Shs11.4 trillion in the previous year.
According to Kasaija, this was due to improved macroeconomic stability, investor-friendly policies, and strategic infrastructure projects that enhance the business environment.
“Uganda has maintained its ranking among Africa’s top investment destinations,” Kasaija said. “We are seeing increased investor confidence across sectors, including tourism, agriculture, energy, and manufacturing.”
As part of the Shs72.3 trillion budget for FY 2025/26 under the theme “Full Monetisation of the Ugandan Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access,” the government has earmarked Shs6.92 trillion to enhance transport and infrastructure.
This includes roads, bridges, railways, and water transport all vital to supporting the tourism sector.
With continued investment and strategic promotion, Uganda is positioning itself as a global tourism hub. As more travelers seek authentic experiences in Africa, Uganda’s rich biodiversity, scenic landscapes, and vibrant culture stand out as key attractions.
The impressive growth in tourism earnings confirms the sector’s role in shaping Uganda’s economic future.