)
)
President Yoweri Museveni, this afternoon presented a confident and optimistic view of Uganda’s economy, despite facing challenges such as aid cuts from international partners.
Speaking at his final State of the Nation Address for the 2021-2026 term, Museveni stated that Uganda’s priorities remain clear, and that the government was committed to defending and transforming the nation, would not waver due to external pressure.
“We are soon finalising the construction of the 1,443 km East African Crude Oil Pipeline (EACOP) from Buliisa to Tanga. The construction of the Standard Gauge Railway (SGR) is soon starting, as well as the oil refinery in Hoima,” Museveni stated.
Despite the aid reductions from both the World Bank and the United States, he said, the government has continued to implement major projects in roads, energy, ICT, education, and healthcare.
)
)
)
President Yoweri Museveni arrives at Kololo for the State of the Nation Address
Uganda’s Economic Growth Remains Strong
The President spoke at length about the nation's impressive economic growth, which was recently ranked as the 7th fastest-growing economy in the world by the International Monetary Fund (IMF).
“The size of the economy is projected at Shs 224 trillion, or approximately $60 billion by the end of June 2025,” Museveni said, noting the growth rate of 6.7% in the last quarter of the financial year, surpassing the previous year’s rate of 5.6%.
He projected further growth, with a 7% increase anticipated in the 2024/25 financial year, when Uganda begins commercial oil production.
Additionally, the President pointed out that Uganda’s economy was projected to more than double to USD 158 billion by 2030.
These figures, he said, reflect the country's sustained growth and resilience despite external challenges, such as the recent aid cuts.
The State of the Nation address
Foreign Aid Cuts and Their Impact
In recent years, Uganda has faced reductions in foreign aid from key donors, most notably the United States and the World Bank.
These cuts were triggered mong others by concerns over Uganda’s Anti-Homosexuality Act, which attracted international criticism.
Under President Joe Biden's administration, the US suspended certain financial assistance to Uganda, while the World Bank similarly halted new financing to the country.
Despite these setbacks, Museveni said Uganda had not been derailed, citing the country’s stable currency, low inflation, and continued foreign direct investment (FDI).
The State of the Nation Address
“In the 12 months to March 2025, export receipts of merchandise trade increased to $9.3 billion,” Museveni noted.
He also pointed out that the Ugandan shilling had become the most stable currency in Africa, appreciating by 6.1% over the past year, and that inflation remained under control, with a projected rate of just 3.6% for 2024/25.
Government’s Focus on Economic EmpowermentMuseveni attributed the country’s success to deliberate and strategic government interventions over the past decade.
He pointed to investments such as the capitalisation of the Uganda Development Bank (UDB), the Parish Development Model and schemes like Emyooga and the Youth Livelihood Programme (YLP), which collectively injected Shs 8 trillion into Uganda’s economy.
The President’s address reaffirmed his administration's focus on economic growth and wealth creation as a means to uplift the nation.
“These achievements are not by accident; they are the result of deliberate and focused government interventions,” Museveni stated.