A business based magazine that brings you the latest authoritative and usable business news, appealing stories & impactful blogs from Uganda, the EAC region and beyond.
A surge in export earnings and foreign direct investment has propelled Uganda’s economy to new heights, with nominal GDP reaching UGX226.34 trillion ($61.3 billion) in the financial year 2024/25.
The growth, up from UGX 203.71 trillion (USD 53.9 billion) in the previous year, reflects a resilient and expanding economy, the global trade disruptions and geopolitical tensions notwithstanding.
During the release of Quarter One expenditure for FY 2025/26, the Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, attributed the strong performance to growing investor confidence, improved household spending, and increased government investment.
“The economy is continuing to exhibit resilience and sustained growth in spite of the global uncertainties like trade wars and international conflicts. Growth averaged 6.9% in the first three quarters of the just concluded financial year,” Ggoobi said.
He noted that GDP growth was supported by fixed capital formation, government expenditure particularly under the Parish Development Model and a steady recovery in household consumption.
Real GDP is projected to grow by 7% in FY 2025/26, with expectations of reaching double-digit growth in the medium term.
Improving business conditions also supported the recovery. The Purchasing Managers’ Index stood at 55.6 in the fourth quarter of FY 2024/25, while the Composite Index of Economic Activity hit 178.58. The Business Tendency Index, a gauge of private sector confidence, was recorded at 59.17 in June 2025.
Annual headline inflation remained stable at 3.9% in June, slightly up from 3.8% in May but within the Central bank’s annual target of 5%.
Meanwhile, the Uganda Shilling appreciated by 1.3% against the US Dollar in June, driven by improved export performance, offshore investments, and higher remittances. The Ministry of Finance insists that the local currency is among the best-performing African currencies.
Exports were a major growth driver. Uganda earned USD 2.6 billion in the third quarter of FY 2024/25, up from USD 1.9 billion in the same period the previous year a 39.1% increase. The export boost was fuelled by rising volumes and international prices of coffee, cocoa, and other key commodities.
Over a 12-month period ending March 2025, Uganda’s exports reached USD 11.8 billion, up from USD 9.56 billion.
While imports also rose by 16.5% to USD 3.05 billion, the faster pace of export growth helped narrow Uganda’s trade deficit. The gap dropped from USD 757.48 million in Q3 of FY 2023/24 to USD 461.15 million in the same quarter of FY 2024/25.
Remittances rose to USD 304.48 million in the third quarter, compared to USD 231.68 million the previous year an increase of 31.4%. Total remittances for the 12 months to March 2025 amounted to USD 1.4 billion.
Uganda also recorded strong inflows of foreign direct investment. FDI in Q3 stood at USD 785.79 million, up from USD 622.06 million in the same quarter of the previous year. The total for the 12-month period rose to USD 3.48 billion from USD 2.99 billion.
These foreign inflows contributed to an improved balance of payments. International reserves increased to USD 4.3 billion by June 2025, equivalent to 3.8 months of import cover, up from USD 3.2 billion the previous year. The current account deficit also narrowed, showing greater external stability.
This year's national budget for FY 2025/26 is UGX 72.376 trillion, with resources directed toward infrastructure, service delivery, industrialisation, and economic transformation.
Uganda received a record $1.4 billion (about UGX 5 trillion) in diaspora remittances in 2024, surpassing traditional foreign exchange earners like tourism and coffee.
The surge highlights the growing influence of Ugandans abroad in shaping the country’s economic trajectory and underscores the untapped potential of diaspora capital.
According to the Uganda Bankers’ Association (UBA), remittance inflows now account for approximately 3% of Uganda’s Gross Domestic Product (GDP).
While this marks a significant milestone, the association believes the country is still scratching the surface. With the right policies and frameworks in place, remittances could grow tenfold to $14 billion (UGX50 trillion) annually over the next 15 years.
Uganda currently has over two million citizens working abroad—primarily in the Middle East, Europe, North America, and more recently, in Asia and Scandinavia. These workers regularly send money home, supporting households and contributing to broader economic activity.
To explore this potential, UBA will host the 8th Annual Bankers Conference come July 29, 2025, under the theme “Harnessing the Potential and Maximizing the Impact of Remittances on Development.”
The conference will convene stakeholders from financial institutions, government, civil society, academia, and labour export firms to examine how remittances can be better leveraged to support Uganda’s development agenda.
“Remittances are not just transfers of money; they are powerful drivers of development. They support poverty alleviation, healthcare, education, real estate and other sectors,” said Julius Kakeeto, Chairperson of UBA.
The conference, organised in partnership with the Bank of Uganda, the International Fund for Agricultural Development (IFAD), and Mastercard as the title sponsor, aims to create a roadmap for maximizing the economic and social benefits of remittances.
In the African context, Uganda is steadily climbing the ranks in remittance inflows. Egypt leads the continent with $24.2 billion annually, followed by Nigeria ($20.5 billion) and Morocco ($12.1 billion). Within the East African region, Kenya tops the chart with $4.4 billion in annual inflows.
UBA Executive Director Wilbrod Owor pointed out the complexity of the remittance ecosystem, noting that different regions contribute in varied ways. He noted that while remittances from the Middle East are frequent but smaller in size, those from Europe and North America tend to be fewer but significantly larger.
“The diverse nature of remittance flows requires targeted policy and market responses,” Owor said. “This includes creating an enabling regulatory environment, reducing transaction costs, and improving access to financial products tailored to remittance receivers.”
The conference will focus on several key areas: Mitigating risks associated with remittances, such as fraud and currency volatility; encouraging financial institutions to develop savings and investment products for recipients; strengthening regulatory frameworks to ensure transparency and consumer protection; leveraging digital technology to improve the speed, safety, and affordability of transfers.
Mastercard’s East Africa head, Shehryar Ali, highlighted the company’s role in modernising the remittance landscape.
“We’re setting new standards in payment technologies to make remittance flows faster, safer, and more inclusive,” he said, adding that digital platforms are key to unlocking the full potential of remittances.
The discussions will also feed into Uganda’s long-term economic vision. As the country works towards its Vision 2040 target of a $500 billion GDP, diversified financing strategies including diaspora remittances will be critical for infrastructure development, social services, and inclusive growth.
DFCU Bank has reported a 151% increase in profit after tax for the financial year 2024.
At the company’s 60th Annual General Meeting (AGM) held on Friday, shareholders also approved a record dividend pay-out.
Management told the shareholders that the company posted UGX 72.1 billion in profit after tax in 2024, up from UGX 28.7 billion in 2023. This significant growth also saw earnings per share more than double to UGX96.35, up from UGX38.39 the previous year.
As a result of the strong financial performance, DFCU Board of Directors proposed and secured shareholder approval for a final dividend of UGX20.09 per share, representing a 121% increase from just UGX9.10 paid in 2023. The dividend will be paid by August 30, 2025, to shareholders on the book as of August 8, 2025.
Jimmy D. Mugerwa, the Chairperson of the Board, attributed the company’s solid results to effective execution of its business strategy and resilience amid changing market conditions.
“The results we are reporting reflect the continued execution of a robust strategy and the resilience of our business,” Mugerwa stated.
“This dividend demonstrates our commitment to value creation for shareholders and is a vote of confidence in DFCU’s future.”
Charles Mudiwa, Chief Executive Officer of DFCU Bank, noted that the bank’s performance was rooted in strong governance and investment in digital transformation.
“Our performance is anchored in prudent risk management, strategic investment in innovation and digital infrastructure, and a deep commitment to serving our customers,” said Mudiwa.
Other highlights from the 2024 fiscal year include a 9% increase in total assets and improvements in both asset quality and capital adequacy. These gains reflect the bank’s growing financial strength and ability to support lending and economic activity.
The bank’s strong rebound has wider implications for the country’s banking industry, which continues to navigate challenges such as inflation, tight monetary conditions, and shifts in consumer behavior.
The bank’s success reinforces the importance of digital transformation in modern banking, having invested significantly in technology and customer service, which have contributed significantly to its financial performance.
This trend aligns with a broader shift across Uganda’s banking landscape, where digital channels are increasingly becoming central to service delivery and market expansion.
The record dividend pay-out is likely to have a positive effect on Uganda’s capital markets. As publicly listed financial institutions increase returns to shareholders, investor interest in banking stocks could grow, adding liquidity to the Uganda Securities Exchange and encouraging broader participation in the financial markets.
The bank’s results for 2024 offer a glimpse into what well-executed strategy, digital investment, and customer focus can achieve in Uganda’s evolving banking landscape.
As the sector continues its post-pandemic recovery, DFCU’s performance provides a roadmap for growth, stability, and shareholder value creation. With financial institutions playing a central role in driving economic development, DFCU’s growth story is not only a corporate success but also a positive signal for Uganda’s broader economic prospects.
Makerere University is elevating this year’s edition of the annual MakRun to a fully professional-level event following the announcement of a UGX1.45 billion sponsorship deal from NCBA Bank Uganda.
The university officials told journalists at a briefing on Wednesday that participants for this year’s run will have the opportunity to tackle a full 42.2 km elite marathon, complete with international timing and closed, traffic-free courses, alongside the well-loved 21 km half-marathon.
Vice Chancellor, Professor Barnabas Nawangwe welcomed NCBA Bank’s “generous gift,” noting that proceeds from this year’s MakRun, scheduled for August 17, 2025, will go directly toward equipping the Disability Support Centre with new assistive devices, and strengthening the scholarship fund, in order to ensure that no bright student drops out due to lack of fees.
“Gone are the logistical headaches of past years. Now we have the resources to deliver a first-class event, but also support students who need help in various ways,” he said.
Prof. Nawangwe said in the buildup to the marathon, the MakRun Club will host weekly Wednesday fun runs to energize students and the wider community, while the University Clinic will offer pre-race medical screenings to ensure all participants are race-ready.
He added that on the race day, the marathon events will be followed by family-friendly sports activities, karaoke, and dance competitions, culminating in the vibrant MakGroove2025 concert at Freedom Square.
Mark Muyobo, CEO of NCBA Bank Uganda, said the bank’s decision was driven by a belief in equity and the power of education, adding that NCBA was excited to support what is now a professionally managed event.
“At NCBA, we believe disability is not inability. We believe that all students, if given a fair opportunity, can succeed. That’s why we’re proud to walk—and run—this journey with Makerere,” he said.
Muyobo said that together with Makerere University, NCBA Bank Uganda aims to empower students with disabilities, support disadvantaged but talented learners, promote healthy and active lifestyles among youth, and contribute significantly to the Endowment Fund to benefit future generations.
The five-year partnership positions NCBA Bank Uganda as the official title sponsor of the MakRun, organized annually to mobilize resources for student scholarships, enhance learning infrastructure, and support community outreach programs.
Dr. Maggie Kigozi, the Chairperson of the Makerere University Endowment Fund (MAKEF), said the Mak-run is expected to attract elite runners from across the East Africa region, and elevate the MakRun from a community event to a premier platform for both professional and aspiring runners from Uganda and beyond.
“We are making this run professional, and that is why we are rebranding it the MakRun –marathon. We will have the professional 42.2km marathon, but those looking for a shorter challenge can choose a 10 km run," she said.
"Families, elderly people and first-time joggers can join the 5 km fun run, because this will be a top-tier experience for athletes of every level,” she added.
Uganda National Oil Company (UNOC) is on the lookout for a joint venture partner to help it explore and develop an oil block in the western part of the African country, a spokesperson for the state-owned oil firm told Reuters on Wednesday.
UNOC signed in 2023 a two-year production sharing agreement with Uganda’s government for the Kasuruban exploration block.
The agreement could be renewed twice for two years, and the state oil firm renewed the deal in March.
Kasuruban Block spans 1,285sq kilometers in Buliisa, Hoima and Masindi districts and is the biggest of the five blocks MEMD announced in the second licensing round in May 2019.
Now UNOC wants to develop the block, but is seeking a partner to do so, company spokesperson Angella Ambaho told Reuters, without giving details about the equity stake a potential JV partner would take.
UNOC wants a reputable joint venture partner with the requisite technical and financial capacities and experience, as well as the commitment to support UNOC’s national aspirations to form a joint venture partnership in the contract area.
In addition to exploration, UNOC also holds Uganda’s 40% stake in the country’s refinery project, as well as 15% stake in each of the oil projects Tilenga, Kingfisher, and East African Crude Oil Pipeline (EACOP).
UNOC operates as the bridge between Uganda’s aspirations to become an oil producer and the technical expertise of international firms like TotalEnergies and CNOOC, which are the joint venture partners to UNOC in the Tilenga and Kingfisher blocks.
Earlier this year, the $5-billion East African Crude Oil Pipeline (EACOP), which is planned to export crude oil from Uganda via a port in Tanzania, secured the first tranche of external financing for the project.
The EACOP project is for a 1,443-kilometer-long (897 miles) pipeline to be built from landlocked Uganda to the Tanga port in Tanzania.
The oil pipeline is expected to bring crude from the Lake Albert project in Uganda to the international oil market.
It is designed to transport 216,000 barrels of crude oil per day, with a ramp-up of up to 246,000 bpd, Uganda says.
EACOP shareholders are France’s supermajor TotalEnergies with a 62% stake, Uganda National Oil Company Limited (UNOC) with 15%, Tanzania Petroleum Development Corporation (TPDC) holding another 15%, and CNOOC, the state oil giant of China, with an 8% interest.
UNOC is a limited liability company owned by the government and mandated to handle commercial interests along the entire value chain in the petroleum sector ensuring that the resource is exploited in a sustainable manner.
Uganda’s banking sector continues to demonstrate resilience, strong profitability, and sound risk management, Bank of Uganda’s Quarterly Financial Stability Review has shown.
The review for the quarter ending March 2025, shows that commercial banks and other Supervised Financial Institutions (SFIs) remain well-capitalized and profitable, even as they navigate a growing exposure to public debt and evolving credit trends.
The banking industry posted a combined Net Profit after Tax (NPAT) of UGX 1.7 trillion, up from UGX 1.5 trillion the same period for the previous year, marking a 13.8 % increase.
This growth reflects improved asset quality, higher interest income, and reduced loan loss provisions. According to BoU, “Aggregate earnings and profitability of Uganda’s banking sector continued to improve over the year to March 2025, maintaining the positive trend noted in the previous review period.”
Interest income rose by UGX 578.4 billion (an 8.2 % increase), while provisions for bad debts decreased by UGX 76.8 billion, or 19.8 %. The Return on Assets (ROA) improved slightly from 3.1% to 3.2 %, underscoring more efficient use of financial resources.
According to Ritah Nansubuga, a Kampala-based financial analyst, “The sustained rise in profitability provides commercial banks with the flexibility to invest in innovation, expand access to credit, and build resilience against economic shocks.”
Commercial banks led profitability with UGX 1.689 trillion in NPAT, followed by Credit Institutions (UGX 9.7 billion) and Microfinance Deposit-taking Institutions (MDIs), whose profits surged from UGX 1.7 billion to UGX 21.2 billion.
Policy expert Patrick Mugisha noted, “The fact that banks remain well-capitalized even while growing their loan books and expanding profitability is a strong indicator of systemic stability. This allows them to support both government borrowing and private sector lending without jeopardizing their balance sheets.”
BoU also confirmed that all eligible institutions complied with the leverage ratio and systemic risk buffer requirements.
Meanwhile, only two SFIs remain below the revised minimum paid-up capital requirements UGX 150 billion for Tier I banks and UGX 25 billion for Tier II banks but both are actively implementing Capital Restoration Plans.
However, the report flagged the growing exposure of banks to public debt. “The banking sector’s exposure to public debt as a share of total assets averaged 30.4 % at the end of March 2025, compared to 29.9 % in December 2024, the review notes.
A BoU report shows credit to government nearing levels of credit to the private sector, raising the need for a cautious approach in balancing the two priorities. Experts warn that while government securities offer attractive returns, overexposure could crowd out private sector borrowing in the long term.
Credit to the private sector is on the rise, albeit still below long-term projections. Total loans extended by SFIs grew by 6.8 %, reaching UGX 22.9 trillion in the year to March 2025, up from 6.5 % growth in the previous year. This uptick was supported by a reduction in the average lending rate to 17.7 %, down from 18.3 % in December 2024.
Improved loan affordability and higher repayment ability led to increased disbursements. The loan repayment rate rose to 28.7 %, up from 25.6 %. As a result, net loan extensions for the year totalled UGX 1.5 trillion.
BoU described this trend as positive, highlighting that lower interest rates and stronger borrower performance are beginning to translate into more sustainable credit growth.
Uganda’s banking sector enters the next fiscal year with a strong capital base, sustained profitability, and prudent risk management. However, the BoU remains cautious of emerging risks, particularly rising sovereign exposure and potential external shocks.
The Uganda Revenue Authority (URA) has exceeded its revenue collection target for the 2024/25 financial year, registering a surplus of UGX 262.43 billion.
Officials told journalists at their headquarters at Nakawa on Monday that the tax body collected UGX31.63 trillion against a target of UGX 31.36 trillion, representing a performance rate of 100.84 percent and signalling improved tax compliance, administrative efficiency, and economic resilience.
URA Commissioner General John Musinguzi Rujoki said the achievement reflects significant progress in domestic revenue mobilization and points to a stronger, more formalized economy.
“We are pleased to report that for the financial year 2024/25, URA collected UGX 31.63 trillion, exceeding our target by UGX 262.43 billion. This performance was driven by a stable and resilient economy, improved administrative measures, and strong cooperation from our patriotic taxpayers,” Musinguzi said.
The total revenue marked a growth of UGX 4.33 trillion or 15.86 percent compared to the previous financial year. Gross domestic revenue collections stood at UGX 21.25 trillion, slightly above the target of UGX 21.11 trillion, registering a surplus of UGX 131.78 billion. Compared to FY 2023/24, this represented a growth of UGX 2.86 trillion or 15.59 percent.
International trade taxes also saw a positive performance, with UGX 11.10 trillion collected against a target of UGX 11.05 trillion resulting in a surplus of UGX 49.32 billion and a year-on-year growth of UGX 1.55 trillion (16.23 percent).
Beyond the numbers, this revenue performance has substantial implications for Uganda’s economy. It expands the government’s ability to fund priority sectors such as infrastructure, education, health, and security without overreliance on external debt. It also boosts investor confidence and demonstrates that Uganda is steadily moving toward financial self-reliance.
“The revenue we collect directly supports national development. Every shilling enables government to build roads, equip hospitals, improve schools, and secure our country. That is why we emphasize voluntary compliance and public trust,” Musinguzi added.
Looking ahead, the Ministry of Finance has set an even more ambitious revenue collection target of UGX 36.74 trillion for the 2025/26 financial year, representing an increase of UGX5.37 trillion or 17.12 percent.
Musinguzi expressed confidence in URA’s capacity to meet the new target. “Given the projected economic growth of about 7 percent and the revenue growth realized in the financial year 2024/25, the target for the financial year 2025/26 remains achievable,” he said.
To reach that goal, URA plans to scale up enforcement and innovation. It will continue leveraging technology, including systems like the Telecommunications Intelligence Monitoring System (TIMS) and the Data Monitoring System (DMS), which help track mobile money and betting transactions.
Tools such as artificial intelligence, digital tax stamps, the Electronic Fiscal Receipting and Invoicing System (EFRIS), and data analytics are also being used to identify revenue leakages, widen the tax base, and improve efficiency.
Musinguzi emphasized that URA’s strategy will focus on transparency, staff performance, taxpayer education, and stakeholder engagement.
“We are building a smarter, more responsive tax administration—one that supports taxpayers while ensuring fairness and accountability,” he said.
With this momentum, URA is positioning itself as a key pillar in Uganda’s economic transformation, supporting sustainable development through improved revenue collection and service delivery.
On Saturday, July 5, 2025, what began as a simple call to action; “Everybody Deserves to Be Smart”, turned into a remarkable display of generosity and shared purpose.
Through the Mark & Friends Charity Drive, dozens of community members came together to donate school uniforms, clean clothes, and sanitary products in support of pupils at Nyakabungo Equatorial Primary School in Kanungu District.
The event marked the collection phase of the initiative, mobilizing volunteers, friends, and everyday citizens to address the overlooked but critical needs that often hinder children, especially girls, from fully participating in school.
The goal is simple: remove the silent obstacles that rob students of dignity, confidence, and the chance to learn.
“Sometimes, it’s not about a lack of school fees, it’s the absence of a uniform or sanitary pads that keeps a child at home,” said Mark Rwatangabo, Team Leader of the charity drive. “Yesterday, we saw firsthand what happens when people decide to care with whatever they have. It was proof that change begins with showing up.”
Donations collected included funds for full school uniforms, clean wearable clothes, and sanitary pads.
The items are being sorted and prepared for delivery to the school in the coming days, where the team will also conduct interactive hygiene and menstrual health workshops, creating safe spaces for learning, conversation, and confidence-building.
To create a sense of celebration around giving, the day featured a FIFA gaming tournament, a Corporate Quiz Challenge, rounds of KENGAN (Advanced Matatu), and a raffle draw. These social activities turned the charity experience into something joyful, collaborative, and community-focused.
The initiative was brought to life with the support of local partners including Cornerstone Asset Managers, Tambula, Games Nation, and Mediage, who played key roles in creating a memorable and impactful experience.
But beyond the numbers and logistics, this drive proved something more powerful: you don’t need a big budget to make a big difference.
“This isn’t just about donations,” Mark added. “It’s about reminding people that you can gather your friends, use your voice, and do something meaningful. You don’t need to wait for a title or a grant, you just need to care enough to act.”
As the team prepares for the delivery journey to Kanungu, they plan to document and share the impact, not for praise, but to inspire others to start their own small acts of change.
To follow the journey or support future drives, please contact Mr. Mark Rwatangabo on rwatangabomark@icloud.com or 0751876300/0701539540 (WhatsApp)
Uganda’s Digital Transformation Roadmap, which envisions a future where digital tools drive economic productivity, efficiency in government, and inclusion across sectors, will only bear results if people are at the centre, a top MTN manager has said.
Speaking at the Middle East & Africa Digital Transformation Summit at the Kampala Serena Hotel last week, Ibrahim Senyonga, MTN Uganda’s General Manager for Enterprise Business, said digital infrastructure must be built with people at the centre - turning bold digital ambitions into bankable partnerships and real impact.
“Our task is to build secure, scalable, and intelligent solutions that let Uganda’s enterprises, public institutions and citizens take off in the digital economy,” he said.
In a room filled with policymakers, regional investors, development partners, and a who’s-who of technology leaders, Senyonga noted that “connectivity is no longer a finish line; it is merely the runway.”
MTN’s summit appearance was not just another industry engagement. It was a continuation of MTN Uganda’s deepening role in shaping the country’s digital trajectory. In May, MTN co-hosted a high-level Government ICT Round Table with the Ministry of ICT & National Guidance, bringing together key players across government and the private sector.
From that engagement, there emerged a workplan focused on modernising service delivery, expanding broadband access, and developing digital public infrastructure that empowers both government and citizens. Under the MTN Group’s Ambition 2025 strategy, the company is making a deliberate, well-resourced transition from a traditional telco into a fully-fledged TechCo.
“Everything we build must lift productivity and lower barriers. That is how technology creates shared prosperity,” said Senyonga. “When a farmer in Masindi can query real-time crop prices on a low-cost handset, or when a start-up in Jinja deploys machine-learning models without importing servers, this is the practical face of transformation; where inclusion is not an afterthought but a growth strategy.”
This commitment to innovation and relevance was made even clearer when MTN Uganda conducted East Africa’s first 5.5G (5G-Advanced) showcase last month at its Kampala headquarters. Delivering unprecedented speeds and ultra-low latency, the trial positioned Uganda at the forefront of next-generation connectivity.
As part of its infrastructure upgrade, MTN Uganda, in May this year, launched its shortest and fastest fibre route, boosting network speed and introducing vital redundancy. This new link strengthens service reliability and ensures seamless connectivity for businesses, government, and future-ready technologies like 5.5G.
Through a combination of device financing models, rural connectivity investments, youth innovation hubs, and targeted digital literacy programs through the MTN Foundation, MTN is ensuring that more Ugandans are brought online and equipped to benefit from the digital economy.
The company understands that every new digitally included person is not only a customer, but a potential innovator, employer, or change-maker.
This people-first approach was evident across the summit, especially during the Africa Youth Innovation Challenge, where students from across the continent showcased health-tech, agri-tech, and fintech innovations, many of them powered by platforms and connectivity provided by MTN.
“Our network is becoming a canvas for local ingenuity,” Senyonga noted. “We are not just enabling services; we are co-creating solutions.”
With over US $300 million committed to network expansion and technology upgrades between 2020 and 2025, MTN is aligning its investments to meet national goals.
Senyonga also stressed the important role the Government has to play to ensure the success of the digital transformation roadmap.
“Building the digital state requires spectrum policy, data protection laws, last-mile power, and affordable devices, none of which any single actor controls. Uganda’s digital decade is already under construction, and MTN is on-site for the long haul.”
Wendi, a digital wallet developed by PostBank Uganda, has processed more than UGX 1 trillion in cash disbursements to beneficiaries of the Parish Development Model (PDM).
The funds, meant to support small-scale economic activities across parishes in Uganda, have been sent directly to beneficiaries through the mobile platform.
George William Kiyingi, the Head of Agent Banking and Fintech Distribution at PostBank, says the first UGX 500 billion was received in January 2025.
All of it was sent to SACCO group accounts, and over 90 percent has already been accessed by individual beneficiaries. Another UGX 500 billion arrived in early June and has also been dispatched from the bank.
Before Wendi, beneficiaries were required to travel to physical commercial bank branches to register accounts. Kiyingi recalls people traveling from Nakapiripirit to Moroto or from Pallisa to Mbale.
Now, registration happens through a phone and a national ID, cutting the need for travel. Since 2024, more than 1.3 million PDM beneficiaries have registered on Wendi.
The system works hand in hand with the government’s PDM Management Information System (PDMIS). Before a transaction is approved, Wendi checks with PDMIS to confirm if a loan has been cleared.
If it hasn't, the payment does not go through. This link between the platforms ensures that only verified beneficiaries receive money.
The SACCO accounts also operate under shared control. Each account is managed by three leaders a chairperson, secretary, and treasurer. All three must approve a transaction for it to go through. If even one disagrees, the transaction is blocked.
Besides disbursement, Wendi allows beneficiaries to save and repay loans. The platform offers an interest rate on savings of up to 10 percent per year. This option encourages users to keep money in the system after receiving their disbursements.
PostBank plans to introduce follow-on loans for users who repay their initial PDM loans.
According to Kiyingi, the goal is to shift people from receiving one-time assistance to using financial services regularly. The plan is to expand Wendi across the country and bring more people into the financial system.
Experts who have followed the platform say it has simplified loan delivery and improved tracking of funds.
They note that disbursements are reaching the right people and that both individuals and SACCOs are now more involved in how money is managed.
As more money is distributed under the PDM, Wendi continues to grow in reach and in how it connects public funds to the people they are meant to serve.
MTN Mobile Money Uganda Limited has unveiled Cover by MoMo, a mobile-based insurance platform designed to make insurance simple, accessible, and affordable for Ugandans at the grassroots.
The product, dubbed Family Cover by MoMo, is in partnership with Sanlam Life Insurance Uganda Limited and provides both life and hospitalization insurance from as low as UGX 500 per month for up to six family members.
Speaking at the launch at the fintech’s head offices in Kampala, officials said the product aims to address Uganda’s persistently low insurance penetration of less than 1%.
Built on MTN MoMo’s expansive mobile money platform, Cover by MoMo eliminates traditional barriers such as paperwork, long queues, and intermediaries by allowing customers to enroll, manage policies, and submit claims via mobile phone using the 1657# USSD code.
The product offers two core benefits: MyLife, which provides a lump-sum full cover payout in the event of death, and MyHospital, which pays a cash benefit for hospitalization (minimum one night for accident, two nights for illness).
Premiums range from UGX 500 to UGX 4,000 per month and offer coverage of up to UGX 2 million for life and UGX 200,000 for hospital expenses.
Richard Yego, CEO of MTN Mobile Money Uganda Ltd, observed that “trust” has been essential to the success of the fintech. He noted that whereas in the past, people would travel a long distance to access banking services at a bank branch, which is not the case any more.
“MoMo is the future, and that future is being shaped right now, in Uganda.” This foundation of trust and innovation forms the backbone supporting new offerings like Cover by MoMo.
Jemima Kariuki, Chief Product Officer at MTN Mobile Money Uganda Ltd, emphasized the importance of inclusivity.
“At MTN MoMo, we believe that every Ugandan deserves access to tools that protect their financial future. Cover by MoMo was developed to make insurance simple, mobile, and inclusive. With Family Cover, we are giving our customers peace of mind because they know they can protect their loved ones affordably and conveniently, straight from their phones.”
Nicholas Wavamuno, the Business Intelligence and Growth Manager at Sanlam Life Insurance Uganda Ltd, noted that they are well-placed to execute the program.
“At the core of who we are is a mission to empower generations to be financially confident, secure, and prosperous. In partnership with MTN MoMo, Family Cover by MoMo delivers on this promise—offering exceptional value, seamless enrollment, flexible payment options, and digital claims processing. This product empowers Ugandans to safeguard their loved ones and pursue their aspirations with complete peace of mind.”
The service is tailored for working adults, SMEs, informal-sector workers, and peri-urban families many of whom already rely on MTN MoMo but lack access to traditional insurance due to cost, paperwork, or geography. Female-led households and young caregivers are also targeted to benefit.
Enrollment is fast and fully mobile: MTN customers simply dial 1657#, select 'Insure with MoMo', choose 'Cover by MoMo' to pick a plan, and can then add dependents, monitor their policy, and file claims via USSD or online at https://ug.coverbymomo.com.
A financial crisis is threatening to cripple the East African Community (EAC) as member states collectively owe a staggering $58 million (UGX 220 billion) in unpaid annual contributions as of March 2025.
The rising arrears have severely disrupted operations, delayed staff salaries, and put essential regional programs at risk raising fears about the future of East Africa’s integration agenda.
Each of the eight EAC member states is required to contribute $7.3 million (UGX 27.7 billion) annually to support the bloc’s operations.
These funds finance institutions such as the EAC Secretariat, the East African Court of Justice (EACJ), the East African Legislative Assembly (EALA), and a range of cross-border development projects.
However, only Kenya and Tanzania have fully paid their dues for the current financial year. Uganda has paid 99% of its obligation, while the remaining member states Burundi, Rwanda, South Sudan, and the Democratic Republic of Congo (DRC) have fallen far behind.
During the EAC Post-Budget Dialogue for the 2025/26 financial year, held at Hotel Africana in Kampala and organized by SEATINI Uganda, Uganda’s Minister for EAC Affairs, Rebecca Kadaga, expressed concern over the ongoing financial delinquency by some partner states.
“We are eight, but only four members are contributing. The others are still having a free ride, yet they continue to expect benefits from the EAC,” Kadaga said. She noted that this year’s budget had to be passed virtually due to financial constraints.
Her remarks sparked critical responses from stakeholders, including Fred Mwebya, General Manager of Startboom Digital, who urged the EAC to invest in digital infrastructure to cut costs and ensure wider participation.
“My concern is what are the other four States doing in the community? Why hasn’t the EAC invested in technology to run its affairs more efficiently?” Mwebya asked.
He also criticized the absence of DRC and South Sudan at the Kampala meeting, despite their official membership in the bloc.
While Kadaga did not name the non-paying countries, Uganda itself has been cited in parliamentary reports for failing to meet its financial obligations to international organizations.
Catherine Lamwaka, Chairperson of Parliament’s Foreign Affairs Committee, revealed that Uganda’s arrears will hit UGX 89.7 billion ($23.6 million) by June 2025.
Yet, only UGX 17.6 billion ($4.6 million) has been allocated in the 2025/26 national budget to settle these debts, leaving a shortfall of UGX 72.1 billion ($19 million).
Mwebya emphasized that the EAC must modernize to survive. “It’s high time we moved from traditional, expensive methods to modern, inclusive systems. Without adequate funding and innovation, the EAC cannot deliver on its mandate,” he said.
The Secretariat, under the leadership of Secretary-General Veronica Nduva, has been forced to scale back operations due to the shortfall. According to Zawya report the EACJ is overwhelmed with a backlog of over 260 pending cases, worsened by a shortage of permanent judges.
The EALA has skipped several sessions due to lack of funds, while the Secretariat itself is grappling with 150 vacant positions and the expected departure of 30 senior staff members by the end of the financial year.
As the East African Community (EAC) marks 25 years since its revival in July 2000, the dream of a borderless, economically integrated region remains largely unfulfilled hobbled by persistent non-tariff barriers (NTBs) that continue to suffocate trade and investment.
Despite having in place robust legal instruments like the EAC Treaty and the Customs Union Protocol, intra-EAC trade has remained dismally low.
In 2023, intra-regional trade accounted for only 15% of the region’s total trade, valued at $12.1 billion (approx. UGX 47 trillion) a far cry from the expectations of a bloc that boasts a combined GDP of over $305 billion and a market of more than 300 million people.
“The EAC integration agenda is being hindered by the proliferation of non-tariff barriers, many of which are politically motivated or protectionist in nature,” said Rebecca Kadaga, Uganda’s Second Deputy Prime Minister and Minister for EAC Affairs, during the recent EAC Post-Budget Dialogue held in Kampala.
The event was organised by SEATINI Uganda in partnership with the Ministry of Finance and the Ministry of EAC Affairs. Kadaga pointed fingers at some EAC Partner States for undermining regional agreements through unilateral trade decisions.
“It is annoying that ministers in some countries often override decisions made by the Heads of State, especially on NTBs. This undermines the very spirit of the Community,” she said.
One of the most recent NTBs shaking the bloc’s unity is Tanzania’s new Industrial Development Levy (IDL).
Introduced under the Imports Control Act, the IDL targets selected imports, including those from within the EAC - a move that many see as a direct violation of the East African Customs Union Protocol.
Moses Kaggwa, Director for Economic Affairs at Uganda’s Ministry of Finance, warned that the IDL will further erode trust and trade within the region. “This is clearly against the Customs Union Protocol and will negatively affect regional trade flows,” Kaggwa said.
Uganda has arguably borne the brunt of NTBs more than any other Partner State. Over the past decade, Uganda’s exports particularly agricultural and manufactured goods, have repeatedly faced restrictions from neighbours like Kenya, Tanzania, and South Sudan.
The worst episode came in 2019, when Rwanda closed its border with Uganda for nearly two years, causing trade between the two countries to collapse from $211 million (approx. UGX 819 billion) in 2018 to less than $5 million (approx. UGX 19 billion) in 2020.
Anna Nambooze, Country Director for TradeMark Africa (Uganda and South Sudan), cautioned that recent moves to raise import charges under the guise of boosting local production may backfire.
“Such measures increase the cost of doing business and reduce affordability for consumers. Instead of fostering industrial growth, they weaken regional competitiveness,” Nambooze said. Even as heads of state reiterate their commitment to integration, individual country interests and domestic politics continue to undermine collective progress.
Kadaga acknowledged that Kenya’s shift to a higher-income bracket under the World Trade Organisation (WTO) classification has limited its access to preferential deals, forcing it into bilateral trade pacts that sidestep regional arrangements.
Experts and policy advocates are now calling for stronger enforcement mechanisms within the EAC framework. “Legal instruments are there, but compliance remains weak. Without political will and accountability, we will continue celebrating anniversaries without meaningful integration,” Kaggwa said.
As the EAC enters its second quarter-century, the challenge remains clear: dismantling non-tariff barriers and aligning national interests with regional goals. Until then, the promise of a truly integrated East African market will remain just that a promise.
Uganda’s government raised more than UGX4.43 trillion from the sale of government securities in May 2025, according to the Performance of the Economy Report for May 2025 released by the Ministry of Finance, Planning and Economic Development.
This figure represents an increase in borrowing through Treasury Bills (T-Bills) and Treasury Bonds (T-Bonds) to support budget implementation and manage public debt obligations.
When government spending exceeds tax revenue collections, it covers the gap by borrowing. Issuing securities through the Central bank is the main way to borrow money domestically or internationally.
Governments often issue new securities to repay maturing ones—this is called rolling over debt. Through the Central bank, the governments can also use securities as a monetary policy tool given that selling securities removes money from circulation hence reducing inflationary pressures.
Of the total funds raised, UGX 755.5 billion came from T-Bills, while the larger portion UGX 3.673 trillion was raised from T-Bonds. The government allocated UGX2.42 trillion of this amount towards refinancing maturing securities, and UGX2.0 trillion was used to finance other items in the national budget.
“This increase in domestic borrowing reflects the government’s strategy to manage short-term liquidity needs and sustain public investment amidst revenue collection challenges,” the report notes in part.
During the month, the government re-opened 3-year, 10-year, and 20-year tenor bonds on the primary market, with higher yields for the investors, rising to up to 17.5%.
The yield is the return an investor earns from holding a security, basically a measure of how profitable an investment in the security is.
Yields on these instruments rose compared to the previous auction. Specifically, yields for the 3-year, 10-year, and 20-year bonds increased to 16.5%, 17.5%, and 17.9% respectively, from 16.2%, 17.1%, and 17.5% in the previous sale.
This upward trend in interest rates was partly attributed to increased borrowing requirements by the government during the month.
Yields on Treasury Bills also reflected mixed performance. The 91-day and 364-day T-Bills saw interest rates rise to 12.1% and 15.4% in May 2025, up from 9.5% and 15.1% in April 2025, respectively. Consequently, all auctions for Treasury Bills were oversubscribed.
In a related development, Uganda’s private sector credit stock experienced a modest increase of 0.8% from UGX 26.16 trillion in March 2025 to UGX 26.38 trillion in April 2025. This rise followed increased disbursements particularly to key sectors such as agriculture, manufacturing, and transport and communication.
Out of the total stock of private sector credit in April 2025, about UGX 6.76 billion was denominated in foreign currency, while UGX 16.75 trillion was Shilling-denominated. The increase in credit to productive sectors signals a continued economic recovery and stronger private sector activity.
The report notes that these developments in the government securities market and private sector lending “reflect a stable macroeconomic environment with improving investor confidence and active participation in both primary and secondary markets.”
As the government continues to rely on domestic borrowing to bridge fiscal gaps, the trend of rising yields and increased private sector credit uptake points to an evolving financial landscape that demands strategic debt management and targeted fiscal interventions.
The Uganda Development Bank Ltd. (UDB) has announced its financial results for the year 2024, highlighting its growing role in supporting Uganda’s economic development.
At its annual general meeting held at the Ministry of Finance, Planning, and Economic Development in Kampala, UDB reported that its total assets grew by 7% to UGX 1.78 trillion. Net loans and advances also rose by 9%, reaching UGX 1.53 trillion.
The bank posted a post-tax profit of UGX 57.8 billion in 2024, compared to UGX 49.8 billion in 2023. This 16% increase was attributed to careful investment strategies and efficient cost management.
Patricia Ojangole, the Managing Director of UDB, said the bank’s operations in 2024 focused on financing projects that align with national priorities. “We remained focused on advancing the Government’s development agenda through financial support to enterprises in key growth areas,” she said.
During the year, UDB disbursed UGX388 billion to new projects across the country, was supported by an increased capital base, which included UGX 80.7 billion in government contributions and UGX 437 billion collected through loan repayments. These inflows brought the bank’s total capitalization to UGX 1.46 trillion, further strengthening its ability to finance development projects.
UDB’s financing had a notable effect on employment. A total of 434 enterprises supported by the bank either created or retained 55,553 jobs in 2024, which represents a 7.2% rise from the previous year. Of these jobs, 59.9% went to young people and 31.3% to women.
Looking ahead, the bank has already approved UGX 454 billion in new loans for over 170 enterprises operating in 67 districts. These loans are expected to create an additional 17,832 jobs, generate UGX 9.7 trillion in business output, UGX 1.8 trillion in foreign exchange earnings, UGX 1.7 trillion in profits, and UGX 455 billion in tax revenue.
The industrial sector received the largest share of UDB’s financing, taking up 50% of the total disbursements. Within this sector, agro-industrialization and manufacturing attracted significant funding. The combined output from enterprises financed by UDB rose by 3.2% to UGX 6.05 trillion, while their tax contributions grew to UGX 316 billion.
The bank maintained a cost-to-income ratio of 31% throughout the year. Its return on assets stood at 3.26%, and return on equity rose slightly to 3.89%, reflecting a steady performance and consistent value delivery.
Finance Minister Matia Kasaija commended UDB for aligning its activities with the goals of Uganda’s National Development Plan and Vision 2040. He urged the bank to extend its support to more businesses, particularly those that have the potential to create employment.
“UDB’s interventions are well aligned with the government’s strategic development objectives, and I encourage them to continue expanding their reach,” Kasaija said.
In addition to lending, UDB undertook several initiatives to support business growth and entrepreneurship. The Business Accelerator for Successful Entrepreneurs (BASE) program trained 450 enterprises and incubated 71 businesses.
The bank also invested UGX 5.1 billion in project preparation and supported over 42,000 households and small businesses through its Hybrid Electricity Connections Program, aimed at improving energy access.
In 2024, UDB received several accolades in recognition of its work. It was named Regional Bank of the Year – East Africa at the African Banker Awards. It also retained its title as Sustainability Leader of the Year at the Karlsruhe Sustainability Awards for the fourth year in a row.
Additionally, Fitch Ratings assigned UDB a National Long-Term Rating of ‘AA+ (Uga)’ with a Stable Outlook, while the Association of African Development Finance Institutions gave the bank an AA rating.
These developments show UDB’s continued role in financing growth and supporting Uganda’s long-term development goals.
Uganda's private sector is experiencing a improved in May, with business confidence reaching a near two-year peak in the month.
This growth is largely fuelled by strong customer demand and a notable increase in output across various sectors.
The latest Stanbic Bank Purchasing Managers’ Index (PMI) highlights this positive trend, rising to 56.4 in May from 55.3 in April. This figure comfortably sits above the 50.0 threshold, which signifies an overall improvement in business conditions.
Christopher Legilisho, an economist at Stanbic Bank, emphasized the sustained momentum within the private sector.
"Robust new orders and output were attributed to increased sales and strong customer demand across all monitored sectors," Legilisho stated.
This heightened activity has directly translated into job creation, with Ugandan firms increasing staffing levels for the fourth consecutive month, encompassing both part-time and full-time positions, in response to the growing output.
The Stanbic PMI, compiled by S&P Global, offers a comprehensive snapshot of the local private sector. It gathers insights from approximately 400 companies spanning key sectors such as agriculture, mining, manufacturing, construction, wholesale, retail, and services.
The index itself is a weighted average that considers new orders, output, employment, suppliers’ delivery times, and stocks of purchases, providing a holistic view of business health.
The report indicates that companies have actively responded to the surge in client demand by increasing both staffing levels and input buying.
Furthermore, the positive outlook for future output has encouraged businesses to accumulate stocks, preparing for continued growth.
While the booming demand is a positive sign, it has also led to some inflationary pressures. Firms increased selling prices again in May, a direct consequence of strong demand conditions and rising purchase and staff costs.
Legilisho pointed out that escalating operating expenses and higher costs for essential goods like cement, soap, and food have contributed to a "moderate build-up in inflationary pressures."
Despite these cost increases, the general sentiment among businesses remains highly optimistic. Ugandan firms are anticipating continued growth in customer demand and output over the next 12 months, reflecting strong confidence in the economic landscape.
This optimism is further underscored by expanded purchasing activity and increased inventory levels in response to the robust demand.
The growth in employment across all five monitored sectors has also allowed companies to effectively reduce their outstanding work for the fifth consecutive month, signalling improved operational efficiency.
This sustained upward trend in the PMI suggests a resilient and expanding private sector in Uganda, poised for continued growth in the coming months.
Uganda’s industrial sector is experiencing an unprecedented transformation, with far-reaching effects on job creation, economic growth, and the standard of living. The shift, which has seen the number of factories surge to over 50,000, has positioned industry as a key pillar in Uganda’s development strategy.
Evelyn Anite, the State Minister of Finance for Investment and Privatisation, says the industrial sector has now overtaken the public service in terms of employment. “Today, our country boasts over 50,000 factories, employing 1.2 million Ugandans, surpassing the total number of jobs in the public service (490,000),” she said. “Our sons and daughters are now manufacturing quality products that compete locally and beyond.”
Speaking at te Mbale Industrial Park recently, Anite underscored that this growth has had a profound impact on the lives of ordinary Ugandans. With over 1.2 million people directly employed and many more indirectly benefiting from industrial activities, the sector has created a ripple effect across various aspects of the economy.
Data from the Uganda Bureau of Statistics (UBOS) shows that the contribution of industry to GDP increased from 26.3% in FY2018/19 to 28.5% in FY2023/24 - driven by expansion in manufacturing, agro-processing, and construction.
Disposable income among factory workers and suppliers has also improved, leading to increased consumer spending in rural and peri-urban communities. “This is the future we envisioned, led by industry, driven by Ugandans,” Anite added.
To match the pace of industrial growth with worker welfare, Anite revealed that the government is actively considering the implementation of a national minimum wage. “As we move toward implementing a national minimum wage, I’m curious to hear from you: What do you believe would be a fair and decent wage for our factory workers?” she asked.
Currently, Uganda does not have a statutory national minimum wage, though the Minimum Wages Advisory Board has previously recommended UGX 136,000 per month, a figure considered outdated in today’s economic climate. Comparatively, some sectors such as floriculture and textiles offer as low as UGX 120,000 per month, while others, like beverages and cement, can pay upwards of UGX 300,000 depending on skill level and experience.
Labour rights activists argue that a revised minimum wage of at least UGX 250,000 would reflect the rising cost of living and motivate productivity in factories.
With over 22 industrial parks across the country and plans to expand to 25 by 2026, the government has created an enabling environment for both domestic and foreign investors. Key facilities like the Namanve Industrial Park, Soroti Fruit Factory, and Mbale Industrial Hub are already attracting significant private capital.
According to the Uganda Investment Authority (UIA), industrial investments grew from UGX 7.2 trillion (€1.7 billion) in 2020 to UGX 9.5 trillion (€2.2 billion) in 2024, with China, India, Turkey, and the UAE among the top sources of foreign direct investment in the sector.
Anite emphasized the government’s open-door policy: “I encourage all investors, current and prospective, to tap into the opportunities offered by the sector to be part of Uganda’s growth story.”
The industrial boom has also contributed to reducing Uganda’s import bill. For instance, locally manufactured products now meet up to 48% of Uganda’s domestic demand for goods such as cement, steel, plastics, and pharmaceuticals, according to the Ministry of Trade, Industry and Cooperatives.
Furthermore, the sector is embracing value addition to agricultural produce, a critical step in enhancing export revenues. Uganda exported manufactured goods worth over USD 1.5 billion in 2024, up from USD 1.1 billion in 2021.
With continued government support, strategic policy frameworks like the National Industrial Policy 2020, and the East African Community (EAC) market of over 300 million people, Uganda’s industrial sector is well-positioned for continued expansion.
Uganda’s industrial revolution is no longer a vision—it is a visible and measurable reality reshaping the economic landscape. The sector’s growth offers not just numbers, but stories of opportunity, innovation, and resilience. With over 1.2 million Ugandans already reaping the benefits and countless more to follow, the path toward inclusive, industry-led development is now clearer than ever.
As the government moves forward with discussions on worker welfare and fair wages, the balance between industrial competitiveness and decent living standards will be key to sustaining this momentum. Investors, workers, and policymakers must now collaborate to ensure that Uganda’s industrial story remains a model of inclusive economic transformation.
MTN Uganda and its partners have today donated digital equipment and vocational tools to the Busoga Kingdom, reaffirming their commitment to bridging the country’s digital divide and empowering youth through practical skills development.
The support, part of MTN’s annual 21 Days of Y’ello Care volunteerism campaign, was received by Busoga Kingdom’s 2nd Deputy Prime Minister, Osman Noor Ahmed on behalf of the Kingdom, at the Inebantu Alice Mulooki Memorial Library and ICT Centre in Jinja City.
The donation included ten computers with one-year internet subscriptions, ten tailoring machines, ten hairdressing kits, and water-harvesting tanks to support kitchen gardening initiatives.
The intervention aims to enhance digital literacy and create income-generating opportunities for teenage mothers and young women, while also improving household food security within the region.
“We greatly thank MTN for its continued support in empowering our young people with the tools and skills they need to thrive in a rapidly changing world,” said Ahmed during the event. “This partnership strengthens Busoga’s commitment to youth development and resilience through technology and training.”
This initiative comes at a critical time, as Busoga faces some of Uganda’s highest teenage pregnancy rates, estimated at over 30% among adolescent girls, according to the Ministry of Health.
Digital access remains low across Uganda, with only 10% of the rural population owning or able to use a computer, and just 27% regularly going online, according to the Uganda Bureau of Statistics.
Juliet Kakayi Nsubuga, Managing Director of Bayobab Uganda, an MTN Uganda affiliate, described the initiative as part of a broader agenda for digital inclusion.
“Connectivity is no longer a luxury but a necessity,” she said. “Our partnership with Busoga reflects a commitment to inclusive growth through expanded access to digital infrastructure and knowledge.”
Nsubuga said the vocational tools, backed up with connectivity, form part of MTN’s broader strategy to reduce economic vulnerability among young women by equipping them with employable skills that promote independence.
This is the second time Busoga has benefited from MTN’s Y’ello Care campaign. In 2016, MTN donated 20 computers to the same centre, resources that have since helped equip thousands of learners with essential digital skills. The 2025 campaign, themed “Connecting at the Roots – Connecting Communities through Digital Tools,” builds on that foundation and extends support across five regions.
MTN Uganda is implementing similar projects nationwide, including Kampala City where it is partnering with the Kampala Capital City Authority (KCCA) to tackle urban youth unemployment through the Kabalagala Youth Centre.
The campaign, worth UGX500 million, is being implemented in partnership with various organisations including the Ministry of ICT and National Guidance, MTN Mobile Money Uganda Ltd, Bayobab, Maendeleo Foundation, AYO Uganda, Roofings Group, Transsion, Xeno Investment, and AYO.
Launched in 2007, the 21 Days of Y’ello Care campaign mobilises MTN staff across Africa each June to volunteer their time and expertise in community service. The initiative closely aligns with MTN Uganda’s Ambition 2025 strategy, which places digital and financial inclusion at the heart of its vision for sustainable national development.
MTN Uganda is part of the South Africa-based MTN Group, with over 240 million customers in 21 countries in Africa and the Middle East.
The MTN Yello Care is a community support initiative that is carried out by MTN staff in all the countries where they operate.
Finance Minister Matia Kasaija has presented the national budget amounting to UGX 72.4 trillion (approximately USD18.8 billion), underscoring the government's strategic focus on transforming the economy, fostering wealth creation, and enhancing the livelihoods of its citizens.
The comprehensive fiscal plan, unveiled at Kololo Independence Grounds, is anchored on the theme ‘Full Monetization of the Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation, and Market Access,’ shows that the economy is projected to achieve a robust growth rate of 7% in FY 2025/26, elevating the Gross Domestic Product (GDP) to UGX 254.2 trillion (USD 66.1 billion).
Per capita income is anticipated to increase to USD 1,324 from USD 1,263 in the preceding year. Inflation, which stood at 3.4% in May 2025 is projected to remain below the Central bank target in the new financial year.
Kasaija attributed this positive economic trajectory to sustained government investments in critical infrastructure, the prevailing peace and stability, and the strategic implementation of science-led innovation and wealth creation initiatives.
Key programs such as the Parish Development Model (PDM), Emyooga, and the INVITE and GROW projects have been instrumental in driving economic progress at the grassroots level.
The FY 2025/26 budget will be primarily financed through domestic revenue collection, projected at UGX 37.2 trillion. This comprises UGX 33.9 trillion from tax sources and UGX 3.3 trillion from non-tax sources.
The remaining financing gap will be bridged through a combination of domestic borrowing (UGX 11.4 trillion), external loans and grants (UGX 13.4 trillion), and the refinancing of domestic debt (UGX 10 trillion).
To bolster revenue mobilization, the Uganda Revenue Authority (URA) is set to intensify efforts in tax base expansion, optimize digital enforcement tools including the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), and mitigate tax leakages through targeted legal reforms.
The budget outlines allocations across various expenditure categories notable of which are domestic debt refinancing and interest payments, which would swallow more than UGX21.3 trillion, more than half of the projected revenue collection of UGX37 trillion.
The budget prioritizes key sectors deemed critical for socio-economic development:
1. Health: UGX 721 billion is earmarked for enhancing healthcare services, including the procurement of essential medicines, immunization programs, and the upgrading of health infrastructure. Significant progress has been made with the commissioning of new blood banks and oxygen plants, alongside the expansion of specialized facilities for cancer and cardiac care.
2. Education: A substantial UGX 5.04 trillion is allocated to support Universal Primary and Secondary Education, facilitate the rehabilitation of traditional schools, recruit additional teachers, ensure adequate textbook supply, and operationalize Bunyoro and Busoga universities.
3. Social Protection: Over UGX 811 billion will be channeled towards supporting elderly persons under the Social Assistance Grants for Empowerment (SAGE) program, alongside significant investments in youth and women entrepreneurship initiatives and support for persons with disabilities.
4. Science, Technology, and Innovation: The government continues to champion the biotechnology and pharmaceutical sector. Notable progress includes continued support to Dei BioPharma in Matugga, which has commenced local medicine manufacturing, with over UGX 724 billion invested in the facility to date.
5. Infrastructure: Sustained investment in road connectivity and electricity coverage has yielded significant results, with electricity access now reaching 57% of Ugandans, a substantial increase from 11% in 2010.
The budget introduces new tax policy reforms anticipated to generate an additional UGX 538.6 billion. These reforms aim to streamline tax legislation by removing ambiguous provisions, enhancing digital compliance enforcement, and rationalizing tax exemptions to align with industrial policy objectives.
Uganda’s export sector has registered remarkable growth, with total exports of goods and services reaching USD 11.8 billion (UGX 45.4 trillion) in the 12 months to March 2025, up from USD 9.56 billion (UGX 36.7 trillion) during the same period in 2024, Finance Minister Matia Kasaija has said.
Presenting the National Budget for the 2025/26 Financial Year at Kololo Independence Grounds on Thursday, June 12, Kasaija said goods exports alone surged by 26%, climbing to USD 9.3 billion (UGX 35.8 trillion) from USD 7.3 billion (UGX 28.1 trillion) a year earlier.
This growth reflects Uganda’s rising industrial and agricultural output, as well as its competitiveness in regional and global markets.
“Our export performance is a testament to the growing capacity of Uganda’s economy and the resilience of our farmers, manufacturers, and traders,” said Kasaija. “We are seeing the fruits of deliberate investments in infrastructure, trade facilitation, and export-oriented production.”
Leading the export list was gold, which brought in $3.8 billion (UGX14.6 trillion), followed by coffee, which earned $1.83 billion (UGX 7 trillion).
Kasaija highlighted coffee’s rapid rise, saying: “It took Uganda over 100 years to reach $1 billion in annual coffee export earnings. In just one year, we have nearly doubled that figure. This is the kind of leap we envisioned under the Tenfold Growth Strategy.”
Other major exports included industrial products worth $626.5 million (UGX 2.4 trillion), cocoa beans at USD 410.8 million (UGX 1.6 trillion), and milk products at $285 million (UGX 1.1 trillion).
Uganda also exported base metals and related products ($230.6 million or UGX 887 billion), sugar ($186.5 million or UGX 718 billion), fish and fish products ($177.7 million or UGX 685 billion), and maize ($86.37 million or UGX 333 billion).
A wide range of other agricultural products, including tea, tobacco, cotton, beans, simsim, nuts, vanilla, fruits, vegetables, flowers, and grains, earned a combined $575.9 million (UGX 2.2 trillion).
The Middle East was Uganda’s top export destination, followed by the East African Community (EAC), Asia, and the European Union. The country recorded trade surpluses of $186.3 million (UGX 716 billion) with the Middle East and $117.7 million (UGX 452 billion) with the EU, largely from coffee, mineral, and industrial product exports.
Kasaija praised the impact of the government’s strategy to expand manufactured exports: “Our efforts to increase the share of manufactured goods in total exports are yielding results. Uganda is now exporting more complex products than expected for our income level.”
A recent study by the Harvard Economic Growth Lab confirmed that Uganda has added 31 new products to its export basket over the last 15 years. These include ICT equipment, vaccines, medicines, new pneumatic tires, gas turbines, electronic components, and measurement instruments.
The country is also exporting more light-manufactured goods like cement, steel, ceramics, processed foods, dairy products, pharmaceuticals, and textiles.
Uganda is now poised to harness the potential of 50 additional complex products referred to as “strategic bets,” which could unlock new markets and increase foreign exchange earnings.
“Our job now is to support value addition, innovation, and industrial development so that we continue growing our export base,” Kasaija added.
“Exports are not just about trade they are about jobs, incomes, and our future as a middle-income country.”
MTN Uganda has taken its flagship staff volunteerism initiative, the 21 Days of Y’ello Care, to the Alur Kingdom in Pakwach District, intensifying its commitment to community development with a focus on healthcare, digital inclusion, and youth empowerment.
The Alwi Health Centre III became a beehive of activities on Thursday, bringing together cultural leaders, government officials, health workers, and corporate partners including ATC Uganda, Tecno Uganda, Ayo, Maendeleo Foundation, and Clinic Pesa.
The event was graced by the Alur Kingdom Deputy Prime Minister, Hon. Prince Vincent Ochaya Orach, who represented His Majesty the Paramount Chief of Alur, His Royal Highness Rwoth Ubimu Phillip Rauni III.
“We are deeply grateful to MTN Uganda and its partners for choosing Alur Kingdom as part of this meaningful national initiative,” said His Royal Highness. “This is not just about technology or health infrastructure; it’s about restoring hope and dignity to our people especially our youth and young mothers.”
To improve healthcare service delivery at Alwi Health Centre III, MTN Uganda staff and partners renovated the facility’s kitchen and sanitation blocks, installed a rainwater harvesting system, donated hospital beds, and planted trees to enhance the environment and sustainability.
In partnership with ATC Uganda, solar lighting was also installed to ensure a steady power supply; crucial during childbirth and emergency cases.
“This campaign is not just an act of charity,” said Sylvia Mulinge, MTN Uganda CEO, who led the delegation.
“It is a deliberate investment in Uganda’s future, connecting people at the roots, addressing the causes of child marriage, school dropout, and poverty through technology, education, and empowerment.”
Dorothy Ssemanda, CEO of ATC Uganda, echoed similar sentiments: “We are honoured to partner with MTN Uganda for this year’s 21 Days of Y’ello Care initiative. It goes beyond powering connectivity to investing in infrastructure that directly improves healthcare, education, and sustainability, particularly in in rural and underserved areas,” she said.
“When we say infrastructure should serve people, this is exactly what we mean. Today, we celebrate not just what we’ve built, but the lives that will be transformed because of it.”
In a significant digital milestone, MTN Uganda also handed over eight internet-connected computers to the health centre to enhance patient records management and medical research access.
“This support is more than we hoped for,” said Hadijja Aliku, the in-charge at Alwi Health Centre III. “With improved lighting, better facilities, and now computers for digital health records, we are better equipped to provide quality care, especially to expectant mothers and young girls who need it most.”
Recognizing that true community development requires inclusive economic empowerment, MTN also donated two computers to the Pakwach Art and Craft Association –a youth-led initiative that will now leverage internet access and MoMo Market to promote and sell local crafts to a wider audience.
Further demonstrating its commitment to education and youth development, Tecno Uganda, one of MTN’s partners, is supporting the construction of a football pitch in Nebbi District. The facility is intended to offer young people a safe and positive space to build life skills, teamwork, and leadership through sports.
This latest development builds on MTN Uganda’s growing partnership with the Alur Kingdom, including ongoing efforts to use sports as a platform for raising awareness about child marriage and teenage pregnancy.
MTN’s ongoing collaboration with cultural institutions including the Alur, Tooro, and Busoga Kingdoms, and the Nnabagereka Development Foundation, underscores a holistic approach to national development that integrates health, education, and enterprise support with Uganda’s cultural heritage.
The Minister of State for Industry, David Bahati, has made a passionate appeal to Uganda’s financial sector to urgently reform its lending practices, cautioning that the current system, marked by exorbitant interest rates, inflexible loan conditions, and prolonged bureaucratic processes, is undermining industrial growth and threatening the country’s broader economic transformation agenda.
Speaking at the Second Annual Uganda Manufacturers Association (UMA) Financial Symposium and Exhibition held in Kampala, Bahati emphasized that access to affordable, timely, and flexible financing remains one of the biggest barriers to unlocking Uganda’s industrial potential.
“Interest rates between 17% and 23%, combined with short loan tenures and lengthy approval procedures, are simply unsustainable. Manufacturers walk into banking halls and wait weeks for a decision. That level of delay is unacceptable—they need answers within days,” Bahati stated.
He urged financial institutions to rethink their approach to credit assessment by moving beyond rigid, collateral-based lending models. Bahati also called for a paradigm shift towards evaluating entrepreneurs based on their vision, capacity for innovation, and long-term growth potential, factors he described as more reflective of a dynamic, modern economy.
He acknowledged the persistent concerns raised by Uganda’s manufacturing community, particularly around the high cost of credit and limited access to long-term financing, and assured stakeholders that their voices have not gone unheard.
The Uganda Manufacturers’ Association (UMA) Financial Symposium is a flagship annual event that brings together key stakeholders across industry and finance to address the pressing financial needs of Uganda’s manufacturing sector. The symposium serves as a strategic platform for engagement, innovation, and actionable dialogue between manufacturers, financial institutions, policymakers, and development partners.
Reaffirming government’s commitment to creating a more supportive financial environment, the Minister pledged that actionable recommendations emerging from the symposium would once again be tabled before Cabinet for consideration and follow-through. He pointed to concrete steps the government is already taking to ease the financing burden on industrial players. “These include the ongoing capitalization of the Uganda Development Bank (UDB), which now offers sector-targeted loans at interest rates as low as 8%, a substantial departure from prevailing commercial rates,” he said.
He cited efforts to strengthen institutions like the Uganda Development Bank (UDB), now offering loans at rates as low as 8%, and government-backed financing schemes such as the $217 million GROW Project supported by the World Bank. The Minister also referenced subsidized lending models where borrowers repay only the principal, with interest costs covered by government.
Diamond Trust Bank (DTB) Uganda Chief Executive Officer, Godfrey Ssebaana, joined the chorus for urgent financial sector reform, describing Uganda’s current industrial financing ecosystem as outdated and ill-suited for the demands of a modern, fast-growing economy.
“Manufacturing is the backbone of national transformation, and so, it is the engine of job creation, value addition, and export competitiveness. But without a robust and responsive financial architecture, Uganda cannot unlock the full potential of its industrial base,” he stated.
Ssebaana warned that the structural deficiencies in Uganda’s financial system, including the chronic shortage of affordable, long-term capital and a lack of sector-specific financial products, continue to hinder the growth of local manufacturers, especially small and medium-sized enterprises (SMEs) that make up the bulk of the industrial ecosystem.
He stressed that if Uganda is to transition from a raw-materials-based economy to one driven by productivity, innovation, and resilience, it must undertake bold, systemic reforms that realign industrial financing with the country’s long-term development aspirations.
Ssebaana outlined three critical strategic pillars that he believes must underpin the transformation of Uganda’s industrial financing. These he said include blended finance and patient capital, green finance, and fintech-enabled solutions.
He advocated for the adoption of hybrid financing models that combine concessional public funds with private sector investment to de-risk high-impact projects, particularly in agro-processing, light engineering, and other productive sectors that are essential for sustainable industrialization.
“We must create financial instruments that recognize both risk and long-term value. Blended finance and patient capital allow us to support projects that may not yield immediate returns but have profound socio-economic impact over time,” Ssebaana noted.
In addition to broad strategic reforms, Ssebaana proposed a series of targeted interventions aimed at unlocking financing for Uganda’s manufacturing sector such as fiscal incentives to drive industrial sustainability, including tax breaks for manufacturers investing in energy-efficient technologies and green infrastructure. Such incentives, he argued, would not only lower production costs but also accelerate the country’s transition to an environmentally resilient economy.
MTN Uganda has summoned its minority shareholders for an Extraordinary General Meeting to vote for a key decision to separate its mobile money business from the telecommunications company.
A press release published in the media today indicates that the Extraordinary General Meeting (EGM) is to be held on Wednesday July 2, to endorse the structural separation of MTN Mobile Money (U) Limited (MTN MoMo) from the core telecom business.
“MTN Uganda will hold an Extraordinary General Meeting (EGM) on Wednesday, 2 July 2025 at 3:00 p.m. to seek shareholder approval for the Proposed Transaction,” the release says, adding that the EGM is to be conducted as a hybrid meeting (physical and electronic).
The structural change that MTN aspires to achieve would see the mobile money and fintech business operate under an entirely new mobile money and fintech division under the MTN Group.
The transaction, which has been undergoing intense scrutiny by different regulators for over a year, is part of MTN Group’s long-term strategy to accelerate growth in its fintech portfolio and unlock value for shareholders and attract targeted investment, and better position the fintech business for future opportunities.
MTN Uganda, which was listed on the Uganda Securities Exchange (USE) in December 2021, is partly owned by minority shareholders who own 23.985% shares.
MTN MOMO has become a cash-cow for the shareholders, and has partly contributed to the share price rising from the IPO price of UGX200 to UGX271 currently.
In 2024, MTN Mobile Money transactions hit UGX158 trillion, and saw total revenue grow by 22.8% to UGX947.5 billion.
The proposed separation involves the transfer of the mobile money business to a new company to be jointly owned by MTN Group Fintech Holdings B.V. and a ‘trust’ representing the minority institutional and retail shareholders.
Last month, MTN held its AGM for the year ended December 2024, at which it announced a profit after tax of UGX641.5 billion, representing a 30% growth compared to the previous year. This growth was partly attributed to the company's strategic investments in fintech.
The AGM approved a dividend payment of UGX22.1 per share, reflecting a 22.8% increase compared to the previous year.
The company says structurally separating MTN MoMo is critical as it would fulfil one of the core objectives of ‘MTN’s Ambition 2025 strategy’: To “build valuable platforms” and “transform the MTN portfolio” by deliberately evolving and adapting MTN’s traditional telecommunications business to take advantage of the growth of technology-enabled services across the world.
“The structural separation is also expected to attract strategic investors and partners at the MTN Group Fintech level, with a view to bringing onboard capital, technologies and critical sector capabilities that will enable MTN New FinCo to benefit from new strategic partnerships,” the press release added.
For example, the MTN Group and the global payments giant Mastercard in 2023 signed a MoU for a minority investment into MTN Group Fintech across 13 African countries. The multi-market partnership would involve Mastercard investing $200 million for a 3.8% stake in the company.
The partnership has so far introduced virtual and physical Mastercard companion cards to every MoMo wallet, granting users access to over 100 million acceptance locations globally.
The Mastercard partnership has so far introduced virtual and physical Mastercard companion cards to every MoMo wallet, granting users access to over 100 million payments locations globally, thus strengthening MTN's digital payment ecosystem, hence opening up additional revenue streams for shareholders.
MTN Mobile Money Uganda Ltd on Thursday extended its 2025 edition of the 21 Days of Y’ello Care campaign to Luwero District, marking the second major activation of this year’s employee volunteerism initiative.
Following its initial launch in Kampala, the campaign now deepens its grassroots impact with a focus on digital transformation in agriculture and healthcare.
Under the theme “Connecting at the Roots – Connecting Communities through Digital Tools,” this year’s campaign runs from June 1 to June 21. It seeks to bridge the digital divide by bringing connectivity and digital literacy to underserved communities, empowering them through education, agribusiness development, and improved health support.
MTN Mobile Money (U) Limited (MTN MoMo) is a 100% subsidiary of MTN Uganda Limited and the leading Mobile Financial Services provider in Uganda, providing services to over 12 million customers.
The campaign in Luwero is part of a larger, multi-regional effort valued at over UGX 500 million. Now in its 18th year, the 21 Days of Y’ello Care remains MTN’s flagship staff volunteer initiative. It reflects the company’s broader Ambition 2025 strategy, which aims to drive digital and financial inclusion for sustainable development.
MTN Mobile Money Uganda Ltd and its partners—including Maendeleo Foundation, the Nnabagereka Development Foundation, AYO Uganda, Bega Kwa Bega, Burn Radio, and others—engaged in a series of transformative community-based activities. These included the renovation of infrastructure at St. Mary’s Health Centre in Kasaala and the unveiling of a digital agribusiness initiative at St. Andrew Kaggwa Secondary School.
Speaking during the event, Richard Yego, Managing Director of MTN Mobile Money Uganda Ltd, underscored the deeper purpose behind the campaign. “Today is more than a handover. It is a celebration of what we can achieve when we combine purpose with partnership, and tradition with technology,” he said.
“Across this district, like much of rural Uganda, we see youth leaving their communities to look for jobs in urban centers or even abroad. Yet, the land beneath their feet holds untapped promise. The key is to transform how we look at farming—not as subsistence, but as agribusiness. Not as tradition alone, but as an enterprise powered by innovation, data, and digital connectivity.”
At St. Andrew Kaggwa Secondary School that has over 1,180 learners, MTN handed over eight internet-connected computers to support digital learning and promote exposure to modern agricultural practices such as climate-smart farming, agri-fintech solutions, mobile market access, and precision agriculture.
The school’s four-acre model farm also received new fruit trees and technical support from MTN staff and partner volunteers, who will continue offering agricultural extension services.
“This contribution will go a long way in transforming the mindset of our learners,” said the school’s head teacher, Mary Gorret Nabacwa. “The computers will open up a world of knowledge, and the improvements on the farm will make agriculture more appealing as a career. MTN has not only given us tools—they’ve planted seeds of change.”
The company also renovated key structures at St. Mary’s Health Centre, Kasaala. The upgrades were accompanied by the donation of smart medical equipment, including computers and a smart infant monitor. These are expected to enhance maternal and neonatal healthcare, improving the overall quality of service delivery.
Samuel Mulwana, the chairperson of the health centre, expressed her appreciation. “The support we’ve received from MTN will significantly strengthen our capacity to serve the community, especially mothers and newborns. The smart infant monitor is a timely and lifesaving addition.”
Yego said the campaign aims to unlock a future where rural youth can thrive without leaving their communities.
“We know that technology is the game-changer. It can connect farmers to weather forecasts, real-time market prices, financial services, and global knowledge networks,” Yego said.
“But first, we must ensure that rural youth have access, skills, and the belief that they can succeed right here; without needing to migrate to Kampala, Nairobi, or beyond.”
As Finance Minister Matia Kasaija prepares to unveil Uganda’s national budget on June 12, civil society organizations (CSOs) are intensifying calls for greater fiscal discipline, transparency, and improved service delivery warning that without these, public investments will fail to meet the country’s development goals.
Speaking at a press briefing in Kampala on June 8, the Civil Society Budget Advocacy Group (CSBAG) presented an in-depth analysis of the FY2025/26 budget. The group praised some government efforts but raised major concerns about persistent inefficiencies and accountability gaps.
CSBAG welcomed progressive reforms, such as income tax exemptions for start-ups during their first three years and the adoption of 47% of the group’s recommendations in the final budget.
“We acknowledge the strides made by the government, particularly in supporting agro-industrialisation and start-ups,” said Julius Mukunda, CEO of CSBAG. “But it is not enough to allocate money we must ensure that every shilling spent delivers value for citizens.”
Mukunda warned that without stricter project preparation and monitoring, many infrastructure projects will continue to face delays and cost overruns. He cited 15 out of 49 loan-funded projects launched between FY2018/19 and FY2023/24 that lacked proper feasibility studies.
Mukunda also raised concerns about the poor absorption of funds at local government levels, with large sums remaining unspent. “For example, UGX 463.77 billion under the USMID program and UGX 89.3 billion under UgIFT were unutilized last year. This undermines local service delivery and frustrates communities,” he noted.
He further called on the government to prioritize payment of contractors to unblock stalled projects such as the Busabala Flyover, which has raised public safety concerns.
Beyond infrastructure, CSBAG advised reforming government credit programs such as the Parish Development Model and Small Business Recovery Fund. “These initiatives must be backed by strong recovery and reinvestment strategies to ensure long-term sustainability,” said Mukunda.
Meanwhile, Jane Nalunga, Executive Director of SEATINI Uganda, urged the government to better align budget priorities with Uganda’s industrialisation goals. “We cannot continue underfunding sectors like tourism, manufacturing, and agro-industry if we are serious about transforming Uganda’s economy,” Nalunga said in a separate interview.
Tourism’s contribution to GDP has grown from 4.7% in 2022 to 6.6% in 2024, yet the sector was allocated only UGX 427.59 billion far below the NDP IV target. Nalunga warned that such funding gaps could derail Uganda’s ambition to multiply its GDP tenfold by 2040.
Uganda’s soaring public debt, now at UGX 107 trillion, was another focal point. Interest payments are projected to consume UGX 9.44 trillion 25.4% of total revenue while debt servicing will take up 53.34% of GDP, well above the government’s 50% threshold.
“Our growing debt burden is alarming,” Nalunga emphasized. “Government must curb the use of unsanctioned supplementary budgets and stop the unchecked rise of domestic arrears.”
Domestic arrears surged from UGX 10.5 trillion in FY2022/23 to UGX 13.8 trillion in FY2023/24. Despite allocating UGX 1.4 trillion for arrears clearance, new unpaid bills continue to accumulate faster than repayments.
CSOs also flagged risks to social services. Funding for essential medicines under the National Medical Stores has slightly declined, while the Ministry of Education and Sports faces a UGX 9.8 billion budget cut. “These cuts, combined with declining donor support in health and the recent mergers of agricultural agencies, could widen service delivery gaps,” Mukunda warned.
With the FY2025/26 budget set to drive the first year of NDP IV and national elections on the horizon, CSOs stressed that spending quality not just quantity will determine Uganda’s development trajectory.
“As we approach the new political cycle, this budget must focus on impact, not just allocations,” said Mukunda. “Ugandans deserve a budget where every shilling truly counts.”
The financial sector will continue facing challenging market conditions and banks in particular, will be required to be more agile and resilient in order to take advantage of new opportunities in the fast-evolving financial landscape.
Godfrey Sebaana, who recently made one year in office as the Managing Director of Diamond Trust Bank (DTB) Uganda, singles out commitment to innovation, customer -centricity and sustainability as among the key factors that will shape the financial services landscape in 2025.
“Indeed, over the past 12 months, DTB has continued to buttress its status as a pillar of financial strength, built on a foundation of resilience, strategic growth, and customer trust.
In an interview, Sebaana described 2024 as a year that “marked a transformative phase for DTB Uganda,” as the bank implemented key strategic refinements aimed at optimising operational efficiency and asset allocation. These strategic initiatives, he says, have strengthened DTB’s ability to meet evolving market demands, enhance customer experience, and reinforce its financial stability.
“As a result, fees and other income grew by 25%, while total income grew by 8%, reflecting the bank’s expanding revenue base and diversified financial streams. Additionally, loans recorded a 3% growth, reaffirming DTB’s commitment to supporting businesses and individuals with accessible financing solutions. At the same time, the bank’s customer base grew by 3%, further demonstrating increased customer trust and engagement,” he adds.
However, some of the bank’s corporate customers struggled to recover after the COVID-19 pandemic and as a result, the bank made a one-off provision that affected its net operating income. Nevertheless, Sebaana insists that the fundamentals are solid as DTB Uganda remains a well-capitalized and financially stable bank, providing long-term security for its customers.
For example, the bank’s core capital ratio of 21.2% surpasses the statutory minimum of 12.5%, while total capital to risk-weighted assets stands at 21.9%, significantly exceeding the regulatory threshold of 14.5%.
“These figures underscore DTB’s commitment to financial strength, instilling confidence among customers, partners, and stakeholders,” he says. With UGX3.04 trillion in assets and UGX2.26 trillion in deposits, DTB stands as a solid financial institution, enabling businesses, entrepreneurs, and individuals to access tailored financial solutions that fuel sustainable growth.
Through strategic connections to major trade corridors including Uganda-China, India-Uganda, Uganda-Europe, and Uganda-America, the bank is empowering the business community with seamless access to international markets. Additionally, the bank is driving Uganda’s key economic sectors by consistently investing in key economic sectors such as agriculture, real estate, construction, telecommunications, and hospitality - fostering interconnected growth across industries.
“Our support strengthens the entire ecosystem - ensuring businesses and individuals thrive. Our investment in agriculture has enhanced raw material production, directly fueled manufacturing and industrialization while creating employment opportunities, improving livelihoods, and driving infrastructural development,” says Sebaana.
Over the past three decades, DTB has been entrenched in traditional banking through brick and mortar, dealing directly with grass roots customers. But in the past 12 months, Sebaana has deployed his previous experience in ICT-based service delivery to put innovation at the core of the bank’s mission to transform financial access, deepen inclusion, and elevate customer experiences.
For example, the bank has invested heavily in ICT development and partnering with telecom and fintech innovators, powering mobile money operators to launch virtual cards, and enabling swift and secure global payments to benefit millions of people. Over 120,000 customers now enjoy enhanced security, frictionless convenience, controlled spending, and instant issuance, setting new standards in digital banking.
The bank has also deployed popular micro-lending platforms including DTB Kash Now and Kwasa Kwasa, which are empowering individuals through instant microcredit, hence fueling business growth and enhancing livelihoods across Uganda. These investments are expected to reap ample dividends in the near future, as digitalisation is known to create a virtuous cycle of reduced costs and increased revenues, leading to sustainable long-term profitability through improved efficiency, enhanced customer relationships, and new revenue streams. This digital transformation represents a strategic necessity for the bank as it seeks to maintain profitability in an increasingly digital financial landscape.
“We are continuously evolving by leveraging innovative technology partnerships and empowering our people with the skills to drive the future of banking,” said Sebaana. “By staying ahead of emerging trends and identifying potential risks, we proactively enhance security and safeguard customer value, ensuring a first-class banking experience that is convenient, reliable, and future-ready.”
Furthermore, the bank’s Agent Banking Network has expanded countrywide, currently numbering over 1,000, an initiative that is breaking barriers and bringing transformative financial services to previously unbanked communities.
“By continuously investing in technology-driven accessibility, DTB is redefining financial convenience across Uganda,” says Sebaana. On his vision for the future of DTB Uganda, Sebaana says: “With a resilient and agile approach, DTB is well-positioned to seize new opportunities in the evolving financial landscape, reinforcing our commitment to innovation, customer-centricity, and sustainability.”
Coffee remains Uganda’s most reliable source of foreign exchange, with the latest report from the Coffee Development Department revealing significant growth in both export volume and earnings.
According to the April 2025 Coffee Report, Uganda exported 7.17 million 60-kilogram bags of coffee worth US$1.97 billion (Shs 7.6 trillion) between May 2024 and April 2025.
This reflects a 21.7% increase in quantity and a massive 94.6% rise in value compared to the 5.90 million bags worth US$1.01 billion exported the previous year.
In April. the country exported 694,318 bags of coffee, generating US$214.38 million (UGX827 billion) in revenue at an average price of US$5.15 per kilo.
This was one US cent higher than the March 2025 average and US$1.53 higher than April 2024’s price of US$3.62 per kilo.
“The value of coffee exports was higher due to the high global coffee prices as dry conditions in Brazil and Vietnam, the world’s largest producers of Arabica and Robusta coffee respectively, continue to fuel uncertainty of the global coffee supply,” the report reads in part.
Sustainable Arabica recorded the highest international price, averaging US$8.70 per kilo. Meanwhile, farmers in Uganda enjoyed improved farm-gate prices: Robusta Kiboko was sold at UGX7,200 per kilo, FAQ at UGX14,500, Arabica parchment at UGX14,800, and Drugar at UGX14,000 per kilo.
Uganda’s coffee continued to perform strongly in Europe, which accounted for 71% of total exports in April. Italy was the largest buyer, importing 42.02% of the coffee, followed by Germany (11.3%), Spain (7.46%), India (6.79%), and Sudan (4.72%).
On the export front, Ugacof (U) Ltd maintained the lead with a 12.58% market share, trailed by Export Trading Company (7%), Ideal Quality Commodities (6.89%), and Olam Uganda (6.7%).
In total, the top ten exporters accounted for 68.43% of Uganda’s coffee exports in April, slightly up from 68% in March.
Among international buyers, Sucafina emerged as the top foreign importer with a 12.67% share, ahead of Louis Dreyfus (8.61%), Olam International (7.13%), and Ecom Agro Industrialist (6.44%).
Looking to the future, coffee exports are projected at 680,000 60-kilogram bags in May 2025 as the main harvest season in Greater Masaka and the fly crop north of the equator gets underway.
Uganda’s coffee sector continues to be a vital pillar of the economy, supporting millions of households and contributing significantly to the country’s foreign earnings. With global demand remaining strong and prices favorable, the outlook for Uganda’s coffee industry remains bright.
Despite several challenges facing the coffee value chain, the growth in coffee exports remains a cornerstone of Uganda's development strategy, with ongoing efforts to enhance productivity, quality, and sustainability to maximize the crop’s economic benefits.
MTN Uganda today kicked off the 2025 edition of 21 Days of Y’ello Care, the company’s annual employee volunteerism initiative. This year’s campaign, themed “Connecting at the Roots – Connecting Communities through Digital Tools,” is to run from June 1 to June 21, 2025, and focuses on supporting communities that continue to face barriers to digital access and connectivity.
In line with the group-wide campaign theme, MTN Uganda and its partners including Ministry of ICT and National Guidance, MTN Mobile Money Uganda Ltd, Bayobab, Maendeleo Foundation, AYO Uganda and Roofings Group, Transsion and Xeno Investment Ltd among others, is implementing a series of grassroots initiatives aimed at expanding digital inclusion and connectivity in underserved areas.
Planned activities include the provision of full studio equipment for photo and videography, fully paid internet for one year, installation of MTN Skills Academy, tree planting, business mentorship workshops, digital literacy training, solar and rainwater harvesting installations, among others.
Speaking at the official launch event held at Kabalagala Youth Centre in Kampala, Enid Edroma, General Manager, Corporate Services at MTN Uganda, said: “The digital divide is not just a technology issue—it’s a social and economic one.
This year’s Y’ello Care campaign is about responding to that challenge with care, collaboration, and long-term thinking. Our teams are working with local partners and communities to develop practical solutions that meet real needs, particularly in areas where connectivity is limited.”
MTN Uganda, in partnership with KCCA, has supported the Kabalagala Youth Centre with a fully equipped creative studio featuring video and photography to facilitate digital marketing and digital content creation.
Additional support includes tree-planting, garbage recycling for green jobs, business mentorship, and landscaping to enhance sports and provide urban youth with opportunities for self-employment in Kampala.
The Centre, which has trained thousands of youth since 2017, is among several grassroots institutions benefiting from the 2025 21 Days of Y’ello Care campaign.
MTN Uganda is also extending this initiative to other regions: partnering with the Nnabagereka Development Foundation to support agribusiness among youth in Luwero District in the Greater Central region; promoting digital tourism and HIV/AIDS awareness in Tooro Kingdom in the western region; addressing teenage pregnancies through digital education in Ker Alur Kingdom in the northern region; and enhancing vocational skills and youth empowerment with the help of technology in Busoga Kingdom in the eastern region.
These interventions, valued at over UGX500 million, reflect MTN Uganda’s commitment to digital inclusion and community transformation.
Now in its 18th year, Y’ello Care is MTN’s flagship group-wide employee volunteering initiative that encourages staff (MTNers) to volunteer their time and expertise to support positive social change. The campaign reflects MTN’s purpose of enabling the benefits of a modern connected life for everyone and is anchored in the company’s core values.
“Y’ello Care is a reflection of how we work and what we stand for,” Edroma added. “This year, we are focusing on places where even modest gains in digital access and connectivity can open the door to long-term opportunity.”
Daniel Kaserengenyi, Deputy Director of Gender, Community Services, and Production at Kampala Capital City Authority (KCCA), welcomed the initiative.
“Access to digital tools has become increasingly vital for education, healthcare, and economic opportunity. We commend MTN Uganda for partnering with local communities to bridge these gaps in a way that is both sustainable and inclusive. Initiatives like this demonstrate the powerful impact that can be achieved when the private sector and communities work together with a shared vision,” he said.
Laura, the Marketing Manager for TECNO mobile phones, expressed excitement to join the initiative to support football in Uganda and empower the next generation.
Pastor Mike Preson, the CEO of Burn Radio said it was an honor to ask questions, gain knowledge, and be inspired. I would like to sincerely appreciate MTN Y’ello Care for providing such a powerful leadership platform and for finding meaningful ways to positively influence young people,” he added.
Uganda’s Annual Headline Inflation rose to 3.8% in the 12 months ending May 2025, up slightly from 3.5% in April 2025, according to the latest Consumer Price Index (CPI) report by the Uganda Bureau of Statistics (UBOS).
The increase, though modest, reflects mounting pressure on consumer wallets, mainly due to rising food and core commodity prices.
The report shows that Annual Core Inflation climbed to 4.2% in May, from 3.9% in April, with the "Other Goods" category being a major driver. Prices for essential commodities such as beef, maize flour, and fish saw notable increases.
Beef prices rose by 16.3% in May, up from 10.1% in April 2025, according to the report, while maize flour inflation jumped to 7.4%, compared to just 0.2% a month earlier.
Fish and seafood prices increased by 8.1% in May, from 3.1% in April. Even though sugar prices remained in deflation territory, the pace of decline slowed, with the commodity registering a -4.0% change in May compared to -10.8% in April.
In addition, Annual Food Crops and Related Items Inflation significantly contributed to the inflationary rise, hitting 4.3% in May, up from 2.4% in April. This was primarily driven by sharp increases in the prices of staple foods.
“Cooking bananas (Matooke) increased by 29.8%, a dramatic jump from 2.9% the previous month, while sweet potatoes rose by 27.8%, compared to 14.5% in April 2025,” the report stated.
Samuel Echoku, Head of Macroeconomic Statistics at UBOS, explained that the increases were linked to seasonal transitions and unpredictable weather patterns.
“Season changes have greatly contributed to the price changes for food crops like Matooke,” Echoku said. “A lot of Matooke was sold off or dried during the dry season. With the onset of rains, farmers have replanted, but the new crops are not yet ready for harvest.”
This supply gap has resulted in heightened demand and consequently, price surges for key staples.
Meanwhile, Annual Energy Fuel and Utilities (EFU) Inflation dropped to -0.9% in May, from 0.0% in April. This decline is mainly attributed to reduced prices of liquefied petroleum gas, kerosene, petrol, diesel, and a slowdown in the price increase of charcoal and firewood. The EFU decline provided some relief amid the broader inflationary environment.
UBOS data revealed disparities in inflation across regions, with Masaka recording the highest annual inflation at 5.3%, while Mbale registered the lowest inflation rate at just 0.5%.
Despite the annual increase, Monthly Headline Inflation remained steady at 0.5% in May, mirroring April’s figure. This stability was maintained despite rising costs in food and core goods, thanks in part to the continued decline in energy-related inflation.
Economists warn that while the inflation figures remain within the Central bank’s target range, the underlying trends in food and essential commodity prices could undermine purchasing power, especially for low-income households. The increase in food prices could also ripple into other sectors, impacting the cost of living, business operations, and wage demands.
If seasonal conditions do not improve quickly, food inflation may continue to pressure headline inflation in the coming months. Policymakers and supply chain actors may need to focus on stabilizing agricultural output and food exports and mitigating the prices of inputs to prevent further inflationary build-up.
The shareholders of Stanbic Uganda Holdings Limited (SUHL) have held their Annual General Meeting (AGM) at which they approved a final dividend.
Consequently, each of the 22,400 shareholders will smile their way to the bank with a dividend payment of UGX 3.31 per share for the fiscal year 2024, totalling UGX155 billion.
In March, the company released its balance sheet for the year ended December 31, which indicated that the company made a total profit of UGX411 billion, up from UGX357 billion in 2022.
"We are delighted to announce a dividend of UGX 3.31 per share, a clear testament to our strong financial performance in 2024 and our unwavering commitment to delivering exceptional value to our shareholders," said a post-AGM press release.
"This pay-out reflects our resilience and strategic focus within a dynamic economic environment."
The approved dividend is scheduled for payment on or before June 27 to all shareholders registered by the book closure date of June 6, 2025.
SUHL, which is listed on the Uganda Securities Exchange, comprises five subsidiaries with a total market capitalization amounting to more than UGX1 trillion.
The subsidiaries are; Stanbic Bank Uganda Ltd, the leading commercial bank in the country, Stanbic Properties Limited, a real-estate company; and SBG Securities Uganda Ltd, an investment and brokerage firm.
The others are; Stanbic Business Incubator Ltd, an enterprise development institution, and FlyHub Uganda Ltd, a technologies and innovations company.
Board Chairman Baker Magunda reflected on the past year's achievements, which he said was “an undoubtedly strong year for us, and I am immensely proud of the significant progress we have made towards achieving our purpose under the diligent stewardship of our boards."
Echoing this sentiment, Francis Karuhanga, CEO of Stanbic Uganda Holdings Ltd, highlighted the impressive returns for investors.
"We are very pleased with the return on the money you invest in this company, which increased by 1.8% to 24.3%. This is notably the highest return, especially within the banking and financial services sector."
The AGM also ushered in significant changes and re-affirmations to SUHL's governance structure. Norbert Kagoro was formally appointed as an Independent Non-Executive Director.
Magunda and Mrs. Agnes Asiimwe Konde were re-elected as Independent Non-Executive Directors, while Ernst & Young Uganda (EY) was re-appointed as the External Auditors.
The meeting also marked a moment of respectful farewell as shareholders acknowledged the retirement of Mrs. Eva Kavuma from the Board of Stanbic Bank Uganda Limited after nine years of service.
"We extend our deepest gratitude to Eva Kavuma for her invaluable contributions and dedicated service over nearly a decade," said Rita Kabatunzi, Company Secretary, on behalf of the Board.
The Uganda Electricity Distribution Company Limited (UEDCL) has embarked on an ambitious plan to add up to 225,000 new electricity connections across the country within the next eight months, signalling a new era in power distribution since acquiring the distribution license last year.
Paul Mwesigwa, UEDCL’s Managing Director, told journalists at a briefing on Wednesday that the utility resumed new connections in mid-April 2025, starting with three-phase and no-pole household connections.
“Our connection teams are on the ground, and we have the required meters in stock,” he said, adding that the online application system is fully functional, eliminating the need for middlemen.
As part of its network overhaul, UEDCL has completed the replacement of 116 faulty transformers inherited during the takeover on April 1, 2025. These transformers, ranging from 25kVA to 1MVA, were replaced in various parts of the country, significantly improving power reliability in affected communities.
To further strengthen the distribution system, UEDCL launched planned nationwide power shutdowns starting in May 2025. This coincided with scheduled maintenance by UETCL at major substations including Mutundwe, Namanve, Kawanda, Nkenda, and Mbarara North, aimed at upgrading the backbone of Uganda’s electricity infrastructure.
With a UGX 274 billion capital investment budget approved by ERA for 2025, UEDCL is set to refurbish old lines, construct new substations, and install over 518 transformers in high-demand areas before the year ends. “The goal is to build a robust, future-ready distribution network that meets growing consumer demand,” noted Mr. Kiiza, a senior official at UEDCL.
In an effort to fast-track electrification and expand access to power, UEDCL has activated 100 service centers across Uganda, with 96% of staff already onboarded and deployed following a mass recruitment drive.
The remaining 4% of required expertise will be sourced externally, with employees currently undergoing intensive training at the Njeru training center a facility now fully operational and focused on skills development, change management, and cultural alignment.
To enhance customer service, UEDCL has launched a 24/7 contact center and digital touchpoints across various platforms including X (formerly Twitter), LinkedIn, YouTube, WhatsApp, TikTok, and Instagram. Customers can now pay their electricity bills using all telecom networks, banks, mobile banking apps, and other digital channels, anytime and anywhere.
“We will be wherever our consumers are,” Mwesigwa emphasized, highlighting the utility’s commitment to digitally empowering customers and streamlining service delivery.
Despite these strides, UEDCL is grappling with a surge in vandalism and illegal power connections, which have raised operational costs and safety risks. In its first month of operations, the company reported nine vandalism incidents in Nakasongola and Luwero, with more cases emerging from Mityana and Mukono.
“These actions are damaging to our reputation and have caused prolonged outages in affected areas,” Mwesigwa lamented.
To curb the vice, UEDCL is working closely with security agencies and the public, urging citizens to report incidents via toll-free lines 0800203088, 0800285285, and 0800385385, or through local authorities and media channels. In addition, community barazas are planned in Wabigalo, Kakoge, Katugo, and Nakasongola starting next week to strengthen community vigilance and public awareness.
"The journey has just begun," said Mwesigwa, calling for public patience and continued support as the utility works to stabilize the electricity network and deliver reliable, efficient, and secure power distribution services to Ugandans.
Uganda is accelerating its journey toward nuclear energy, with the government announcing plans to commission the first 1,000 megawatts (MW) from the Buyende Nuclear Power Plant by 2031.
This milestone would mark a major step in Uganda’s ambitious bid to diversify its energy mix and meet growing electricity demands.
The Buyende Nuclear Power Plant (NPP), located on Kasaato Hill in Buyanja Sub-county, Buyende District, is poised to become Uganda’s flagship energy infrastructure project under the forthcoming National Development Plan IV.
The move follows the selection of UK-based Currie Consultants Limited (CCL) in 2023 to lead the Resettlement Action Plan (RAP) for the project. The RAP is a critical component in preparing the site for development and ensuring affected communities are adequately compensated and resettled.
Speaking to journalists on Tuesday, the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, reaffirmed the government’s commitment to the 2031 commissioning goal.
“By 2031, I would like to see the initial 1,000MW. For the 8,400MW planned in Buyende, we will start with 1,000MW,” she said. “We cannot put all the 8,400MW on the grid at once it would collapse. You have to make sure the off-takers, grid infrastructure, and distribution network are prepared.”
The Buyende project is one of four nuclear power stations included in Uganda’s 2023 Energy Policy roadmap. Others include the Nakasongola NPP (7,200MW), Kiruhura NPP (4,800MW), and Lamwo NPP (4,000MW). Together, these projects are expected to contribute 24,000MW of nuclear energy toward Uganda’s overall electricity generation target of 52,481MW.
Progress on the Buyende plant advanced further with the recent signing of a site evaluation contract between the Ugandan government and Korea Hydro and Nuclear Power (KHNP), a leading South Korean firm. The contract authorizes KHNP to begin on-site assessments that will guide the project’s feasibility, environmental safety measures, and social safeguard planning.
“The contract will enable KHNP to go on site in Buyende, after which the real development begins,” said Minister Nankabirwa.
“This site evaluation is a critical prerequisite before the full feasibility study is prepared which will also cover compensation and resettlement planning.”
At least 30% of the project work under this contract will be subcontracted to Ugandan companies. KHNP will also collaborate with MEMD to build local capacity through staff training and knowledge transfer.
The Korean Ambassador to Uganda, H.E Sung-Park commented: “We hope to become a strong and reliable partner in Uganda’s vision to become a nuclear-operating nation and deliver 24 gigawatts of nuclear power generation capacity.”
This agreement builds on a Memorandum of Understanding (MoU) signed between the Korean government and MEMD during the African Nuclear Business Platform Conference held in Kampala in March 2023.
Irene Bateebe, the Permanent Secretary at MEMD, emphasized the strategy’s significance. “Stakeholder engagement is fundamental to the success of Uganda’s nuclear power programme. This strategy will guide our efforts in building trust, transparency, and national support.”
Uganda has repeatedly stated its commitment to the peaceful use of nuclear technology, not only in power generation but also in critical sectors such as healthcare, agriculture, industry, and water resource management.
If successful, the Buyende NPP will position Uganda among a small but growing group of African nations embracing nuclear energy as a sustainable solution to energy poverty and industrial growth.
It’s not often that you find a room packed to capacity with the country’s top brains in the information, communication and technology (ICT) sector, and more so if they all representing public sector institutions such as Ministries, Departments and Agencies.
According to Ambrose Ruyooka, a commissioner and a top technocrat at the Ministry of ICT & National Guidance, all public agencies and employees now understand how the Government wants the ICT sector to be a key pillar in the country’s development agenda.
Speaking in Kampala at a forum whose objective was to accelerate the implementation of Uganda’s National Digital Transformation Roadmap, Ruyooka stressed the point that ICT is indeed “a priority sector,” which aims at the integration of ICT into every citizen’s way of life.
MTN Uganda hosted the High-Level Government Roundtable in partnership with the Ministry of ICT and National Guidance, to lay strategies for a joint workplan featuring actionable frameworks and minimum viable projects (MVPs) that can be carried out through public-private collaboration.
The telecom giant, whose top managers insisted that the company has “transformed from a mere telcom into a techcom,” showcased their current digital capabilities including; Fintech, Cloud computing, Internet of Things (IoT), Managed Networks, and e-Government solutions, which have effectively positioned it as the preferred technology partner for different MDAs including NSSF, Electoral Commission, UBOS, NIRA, among others.
The one-day engagement brought together senior Government officials, policymakers, ICT leaders, and the MTN Uganda top executives to explore practical strategies for accelerating the implementation of the five-year National Digital Transformation Roadmap.
Ruyooka insisted that that the country has sufficient infrastructure to support the implementation of the roadmap, whose purpose is to capitalize on emerging technologies, enhance economic competitiveness, and improve the lives of Ugandans.
Sylvia Mulinge, the MTN Uganda CEO, emphasized the importance of public-private partnerships in achieving an inclusive digital development agenda.
She insisted that MTN has invested heavily over time to ensure that the country’s digital transformation is inclusive, practical, and locally relevant and “unstoppable.”
“Through this Round Table, we are deepening our partnership with Government to co-create sustainable solutions that improve lives and enable Uganda’s digital vision,” Mulinge said.
She added: “One of the biggest value propositions that we have as MTN is that we are able to integrate all the various trends in our connectivity, as well as our fintech and infrastructure platform to provide an integrated solution that not only makes it cheaper for public service delivery but also provides the capacity to demand more in order to make every MDA truly unstoppable.”
While positioning MTN Uganda as the preferred technology partner for MDAs, the interactive forum provided a platform to showcase the evolution of the company’s digital capabilities aimed at enhancing service delivery across the different MDAs.
“We are showcasing solutions that can immediately add value to public service delivery—from secure cloud infrastructure to smart government platforms and managed connectivity. Our goal is to walk this journey hand in hand with Government, building what matters most to citizens,” said Ibrahim Senyonga, the General Manager for MTN’s Enterprise Business Unit.
One of the key challenges that were highlighted at the event was the fact that data in the different MDAs was scattered (stored in silos) and poorly integrated, which makes it hard to use for decision-making and effective service delivery.
Also, the rapidly evolving ICT landscape is putting serious strain on the traditional IT environments in many MDAs, which find it difficult to cope due to various challenges including limited funding, access to equipment and training for staff.
Nevertheless, the participants were told that the ICT sector continues to grow at an average growth rate of 14.8% and contributes 9% to Uganda’s Gross Domestic Product (GDP). The growth is a result of a combination of policy decisions and investments that have led to the scaling up of infrastructure coverage, increased internet penetration and the rolling out of e-services among others.
The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), in partnership with the World Bank, is implementing the Uganda Climate Smart Agriculture Transformation Project (UCSATP) across 69 districts, including seven refugee-hosting areas.
With a budget of $350 million (approximately UGX 1.3 trillion), the project is designed to modernize agriculture, build resilience against climate change, and improve market access for more than 3.5 million smallholder farmers.
Officials told journalists on a field visit recently that the project aims to address key challenges in Uganda’s agricultural sector, such as low productivity, poor infrastructure, limited access to quality inputs, and post-harvest losses.
According to the Uganda Bureau of Statistics, up to 68% of households depend on subsistence farming, and as much as 40% of food is lost after harvest due to poor handling and storage facilities.
Officials from MAAIF and the World Bank recently visited districts such as Kumi, Serere, and Kyegegwa to inspect infrastructure under construction, including feeder roads, irrigation schemes, and value addition centers. These investments are aimed at helping farmers access markets more easily and increase household incomes.
Dr. John Ilukor, an Agricultural Economist with the World Bank, encouraged local communities to take full advantage of the project. “The project is now left with two and a half years of implementation. It is critical that farmers, local governments, and stakeholders prepare adequately to fully benefit from the interventions being rolled out,” he said during a field visit in Kumi District
However, local authorities expressed concerns about inadequate staffing and logistical support. “Our agriculture department is operating at just 28% of the required personnel,” a Kumi district official said. “Extension workers lack transportation, which makes it difficult to reach farmers in remote areas. We urge MAAIF to secure more funding to address these issues.”
In Serere District, officials visited the Kyere Okungoro Omikid Fish Farming Project, which has faced declining productivity in recent years.
Project leader Opolot Moses shared the group’s struggles: “In 2021, we earned UGX 3.6 million, followed by UGX3.2 million in 2022, but last year our income dropped to UGX2.1 million. We are requesting both financial support and technical training to help us recover.”
Pushina Kunda Ng’andwe, the UCSATP Task Team Leader, described the project as a timely and comprehensive government-led effort to address the most pressing issues in the agriculture sector.
“The Uganda Climate Smart Agriculture Transformation Project is designed to enhance production and productivity, build climate resilience in selected value chains, and support smallholder farmers in accessing markets to improve their incomes,” she said.
The project supports 13 value chains across crops, livestock, fisheries, and even bees for apiculture. It introduces climate-smart farming practices and market-oriented strategies to help farmers adapt to changing conditions while increasing output and profitability.
One key component is the rollout of matching grants and an e-voucher system, which will help farmers access subsidized seeds, fertilizers, and agrochemicals. Input dealers and service providers will be linked through a digital platform to streamline deliveries and ensure transparency.
Transportation challenges also rank high among farmers’ concerns. Poor rural roads often prevent produce from reaching markets in time, resulting in post-harvest spoilage and low prices. To tackle this, UCSATP is funding the rehabilitation of feeder roads and construction of market collection centers to shorten travel time and reduce spoilage.
“There are planned interventions to improve road access in the identified districts,” said Pushina. “Additionally, the project is addressing post-harvest challenges through investment in storage facilities, drying platforms, and processing units to enable value addition and prolong shelf life of agricultural commodities.”
“There are planned interventions to improve road access in the identified districts,” said Pushina. “Additionally, the project is addressing post-harvest challenges through investment in storage facilities, drying platforms, and processing units to enable value addition and prolong shelf life of agricultural commodities.”
The East African Crude Oil Pipeline (EACOP) project is going on according to schedule, with an official stating that the pipeline has now reached 58% completion.
Speaking at the 2025 Energy Convention held in Kampala recently, Natasha Kassami, the National Content and Capacity Building Lead at EACOP, said; “We are pleased to report that the EACOP project has now achieved a 58% overall completion rate,” outlining a series of technical milestones across the pipeline’s 1,443-kilometre stretch from western Uganda to the Tanzanian port of Tanga.
According to Kassami, engineering works stand at 98% completion, procurement is at 83%, and 80% of the pipeline's components have been manufactured in China and shipped to Tanzania for protective coating.
She noted that 553 kilometres of the pipeline have undergone thermal insulation, 233 kilometres have been welded, 57 kilometres coated, and 17 kilometres buried.
Uganda's share of the pipeline includes two pump stations and two pressure reduction stations currently under construction. “Foundation work and equipment installation are actively ongoing,” Kassami said, adding that fibre optic systems and pig launchers have been incorporated to monitor safety and efficiency.
However, Sarah Kyeyune, a petroleum engineer and energy consultant, expressed skepticism about the EACOP’s claims.
“The numbers may look impressive on paper, but what exactly is being counted in that 58%?” she asked. “Completion should be measured by operational readiness and community engagement, not just procurement or overseas manufacturing of pipes. There’s still considerable work pending, especially within Uganda’s territory, where land acquisition and environmental compliance remain unresolved.”
Kyeyune called for greater transparency, particularly in distinguishing between technical progress and actual deliverables on the ground. “We need an independent audit of the project milestones before we celebrate. Uganda must not be rushed into a false sense of readiness.”
Kassami stated that 90% of the workforce, totalling 2,483 individuals, are Ugandan nationals and some $111 million has been injected into local procurement.
Ronald Musoke, an energy economist and lecturer at Makerere University, welcomed the progress as a significant step forward. “Reaching this milestone shows the resilience of the EACOP project in the face of financing and logistical delays,” he noted.
“The integration of local labour and skills development is particularly commendable. It’s not just about exporting oil; it’s about building long-term capacity.”
Musoke also commended EACOP’s collaboration with universities and vocational institutions, calling it “a model of how infrastructure can spur academic and economic linkages.”
Construction of accommodation camps at the Main Camp and Pipe Yards (MCPYs) in both Uganda and Tanzania is progressing, with five camps already operational. Civil and foundation works at the pumping stations in Uganda are also progressing, with equipment being delivered to construction sites.
The EACOP is owned by a consortium of four main shareholders, which include; TotalEnergies (62%), Uganda National Oil Company, UNOC (15%), Tanzania Petroleum Development Corporation, TPDC, (15%), and China National Offshore Oil Corporation, CNOOC, (8%).
The partners announced the closing of the first tranche of external financing for the project in March 2025, provided by a syndicate of financial institutions including regional banks. The project has secured $2 billion in global financing to date and is seeking another $3 billion in debt financing.
‘First oil’ production from the associated upstream Tilenga and Kingfisher projects is expected later this year, with the pipeline expected to come online in 2026.
The Uganda Tourism Board (UTB), in collaboration with the Ministry of Tourism, Wildlife and Antiquities, has launched an ambitious five-year National Destination Marketing Strategy (NDMS) aimed at transforming Uganda into a globally competitive and sustainable tourism destination.
The strategy, unveiled this week in Kampala, seeks to boost the tourism sector’s contribution to the economy from the current $2 billion to $50 billion by 2040.
“This bold five-year strategy is our blueprint to elevate Uganda’s global tourism appeal and position the country as a premium destination,” said Basil Ajer, the Director of the Tourism ministry. “It’s a deliberate move to unlock $50 billion in tourism revenues by 2040 through strategic marketing, product development, and partnerships.”
The plan aligns with Uganda’s broader Vision 2040, which aims to grow the country’s economy to $500 billion, with tourism contributing 10% to the national GDP.
Currently, tourism contributes 5.5% to GDP, equivalent to about UGX 7.6 trillion, and supports over 750,000 jobs, 58% of which are held by women and 77% by youth.
At the core of the NDMS is a strategic pivot toward attracting high-value visitors travellers who spend more, stay longer, and engage deeply with Uganda’s unique offerings. These include eco-tourism, cultural tourism, adventure travel, and wellness tourism.
“The new strategy identifies priority markets such as North America, Europe, and Asia, and provides tailored approaches for each,” Ajer explained.
“It also places strong emphasis on digital marketing, destination branding, and product diversification to meet the demands of post-COVID travelers who are more conscious about sustainability and authenticity.”
Uganda is globally renowned for its biodiversity and unique attractions, including the world’s largest population of mountain gorillas (53.9%), over 1,060 bird species, the source of the River Nile, and 10 national parks that showcase the Big Five and dramatic landscapes from Rwenzori Mountains to Kidepo Valley.
In 2023, Uganda received over 1.5 million tourist arrivals, generating more than $1.2 billion in foreign exchange earnings. The new strategy aims to double annual visitor numbers and significantly increase per capita tourist spending by 2030.
Bradford Ochieng, Acting CEO of the Uganda Tourism Board, emphasized that collaboration is central to the strategy’s success.
“We’re building a tourism economy that is inclusive, innovative, and resilient,” he said. “This strategy is about more than numbers it’s about unlocking the full potential of tourism to drive sustainable development and empower communities. By working with both public and private stakeholders, we can reimagine Uganda as a year-round destination rooted in culture, nature, and authentic African experiences.”
The strategy also outlines plans to enhance tourism infrastructure such as roads, airstrips, and accommodation facilities. It also commits to supporting local tour operators and SMEs through capacity building, access to finance, and digital tools to improve service delivery.
Doreen Katusiime, the Permanent Secretary at the Ministry of Tourism, Wildlife and Antiquities, said the strategy is designed to be inclusive, with a strong focus on youth engagement and entrepreneurship.
“This is not just a government program—it’s a platform for the next generation of tourism growth,” she said. “We’re looking at tourism as a vehicle for youth empowerment and job creation. This strategy will encourage innovation, enterprise, and local ownership across the tourism value chain.”
The NDMS will run from 2025 to 2030, forming the first phase of Uganda’s long-term tourism transformation agenda. Its implementation will be supported by government investments, donor funding, and strategic partnerships with international tourism bodies.
The Uganda Communications Commission (UCC) has teamed up with MTN Uganda, Airtel Uganda, and ATC to launch a nationwide anti-vandalism campaign aimed at safeguarding the country’s critical telecom infrastructure including wires, cables and towers.
The campaign, dubbed ‘Tokigeza’, is a result of the National Telecom Stakeholder Forum on Vandalism held last year and aligns with a high-level commitment from President Yoweri Museveni, who pledged decisive action to tackle vandalism targeting telecom infrastructure.
Vandalism has increasingly threatened Uganda’s communication backbone, with telecom operators reporting over 820 incidents of cable theft, 283 cases of fuel theft, 90 battery thefts, and multiple network disruptions between 2022 and 2024. These acts have caused major service outages, with some lasting more than 134 hours, crippling services in key districts such as Sheema, Kaliro, and Masaka.
While launching the campaign today at the UCC head offices in Kampala, Nyombi Thembo, the UCC Executive Director, reinforced this commitment: “Telecom infrastructure is the backbone of our development. Vandalism disrupts lives, security, and opportunity. Tokigeza is our united front to stop this trend.”
Nicholas Beijuka, the General Manager of Capital Projects at MTN Uganda, emphasized the human impact of vandalising telecom infrastructure.
“As the largest telecom operator in Uganda, we’ve seen firsthand the pain caused by outages due to theft and vandalism. When a tower is vandalized, it’s not just equipment lost, it’s your child missing an online class, your loved one unable to reach help in an emergency, or your business losing revenue. Through the campaign, we are calling on every Ugandan to help protect what connects us all.”
The campaign comes on the heels of President Museveni’s pledge to support the designation of telecom towers as ‘Critical National Infrastructure’ (CNI), which would allow for tougher penalties, enhanced enforcement, and integration of telecom security with national surveillance systems.
The President also backed legal reforms to categorize vandalism of telecom infrastructure as economic sabotage, signaling a new era of accountability.
MTN Uganda, alongside its industry peers, is investing in community sensitization, renewable energy, and network expansion—but these efforts are jeopardized by continued vandalism.
“We believe community partnerships are essential to securing our network,” added Beijuka.
“We are working closely with UCC, government agencies, landlords, boda boda riders, and local leaders to create a united front against this growing threat.”
Soumendra Sahu, the Managing Director of Airtel Uganda, expressed support for the call for comprehensive legislation and stronger policing.
Dorothy Kabagambe Ssemanda, CEO of ATC Uganda, also expressed strong support for the campaign and emphasized the collective responsibility required to protect infrastructure:
“Our infrastructure plays a pivotal role in connecting millions of Ugandans to essential services—from mobile banking to emergency healthcare. Every time a tower is vandalized, communities are silenced, and progress is delayed.
ATC Uganda is fully committed to working with government, operators, and communities to ensure that no one is left behind because of criminal activity.
Members of the public are advised to report vandalism through the toll-free hotline 0800282662.
The Monetary Policy Committee of the Bank of Uganda has decided to keep the Central Bank interest rate at 9.75% for May.
The decision highlights the Central bank's strong focus on keeping people's expectations about future price increases stable and supporting a strong and long-lasting economic path for the country, even with the current unpredictable global economic outlook.
Dr. Michael Atingi-Ego, the BoU Governor, told journalists at a briefing on Tuesday that the current monetary policy stance remains optimally calibrated to navigate prevailing economic headwinds.
He emphasized its suitability for maintaining inflation within the targeted range, thereby creating a stable macroeconomic environment conducive to long-term socio-economic transformation.
"The Monetary Policy Committee (MPC) has determined that the existing policy framework is best positioned to ensure inflation remains aligned with our objectives, while simultaneously supporting robust economic expansion and the nation's broader development agenda," stated Atingi-Ego.
Since 2011, Uganda has been using a specific method called "inflation targeting" to manage how fast prices go up. This approach has clearly helped the country to keep price increases under control, which in turn has supported economic growth and the development of its financial system.
Recent information from April 2025 shows that the general inflation rate was 3.5%, and the core inflation rate (which excludes some unstable prices) was 3.9%. These are slightly higher than they were in the previous month.
Looking forward, the Bank of Uganda expects the core inflation rate to be around 4.5% to 5.0% in the next financial year that starts in June, which is close to its long-term goal of 5%.
However, the Central bank remains acutely aware of potential upward risks to inflation. Atingi-Ego highlighted escalating domestic demand, fuelled by strategic investments in Uganda's burgeoning oil and gas sector, ongoing global supply chain vulnerabilities, regional geopolitical complexities, and the impact of unpredictable weather patterns on agricultural output as key factors warranting close monitoring.
Furthermore, exchange rate fluctuations stemming from global financial uncertainties present a potential pathway for increased import costs, thereby adding further inflationary pressure. Counterbalancing these risks, the BoU anticipates that improved agricultural yields, a strengthened exchange rate underpinned by capital inflows into the oil sector, and a moderation in global energy and commodity prices could exert downward pressure on inflation.
Despite the complexities of the global economic environment, Uganda's economic fundamentals exhibit notable resilience. Business confidence remains positive, and private sector activity demonstrates steady momentum. Nevertheless, the BoU adopts a cautious outlook, acknowledging potential downside risks such as subdued external demand, tightening global financial conditions, and policy uncertainties that could potentially temper future growth prospects.
Fred Muhumuza (PhD), a senior economist and lecturer at Makerere University, commended the BoU's prudent decision, emphasizing the predictability it offers to both businesses and consumers.
"Maintaining the CBR at 9.75% reflects a judicious balancing act by the BoU, acknowledging the imperative of inflation control alongside the need to nurture economic growth. In the current climate, characterized by global instability and significant investments in the oil sector, introducing further monetary adjustments would be imprudent," Muhumuza observed.
He further noted the potential for sustained medium-term growth driven by oil and gas investments but cautioned against the resurgence of domestic inflation without diligent oversight.
Diana Kibuuka, Head of Research and Market Development at Equity Bank Uganda, also welcomed the decision, saying the consistent rate allows financial institutions to maintain established loan pricing structures, a crucial element for effective credit planning and fostering customer confidence.
"For financial institutions, the stability of the CBR enhances our ability to forecast accurately and continue providing vital support to key sectors such as agriculture, manufacturing, and SMEs. However, we remain vigilant for any unforeseen policy shifts that could impact interest margins or asset quality," Kibuuka stated.
NCBA Bank Uganda has announced a 40% increase in its profit before tax earnings, reaching UGX 46 billion in 2024.
This significant growth, up from UGX 33 billion in 2023, underscores the bank's strategic execution and ongoing commitment to digital transformation, the CEO Mark Muyobo told journalists at a press briefing in Kampala yesterday.
The bank's 2024 financial results reveal a strong trajectory across key performance indicators. Net Loans and Advances experienced a notable expansion of 18%, climbing to UGX 298 billion.
Concurrently, customer deposits demonstrated robust growth, rising by 15% to UGX654 billion from UGX 567 billion in the preceding year.
This surge in deposits reflects increasing customer confidence and the bank's growing market penetration.
The bank’s total assets also witnessed significant expansion, reaching about UGX960 billion. This growth is further evidenced by a 20% increase in total Income, which rose from UGX114 billion in 2023 to UGX 137 billion in 2024.
The bank's gross loans and advances also saw an upward trend, increasing by 11% from UGX 283 billion in 2023 to UGX 314 billion in 2024.
CEO Muyobo reflected on the institution's journey since its inception in 2020 through the merger of NIC and CBA, and growing to become East Africa’s third-largest commercial bank, with assets totalling UGX742 billion.
James Mulandi, the chief financial officer, highlighted the drivers behind the bank’s performance during a media briefing at the bank's headquarters.
"Our strong 2024 performance, marked by a 40% growth in profit before tax and double-digit asset growth, is a testament to our disciplined execution, prudent risk management practices, and our unwavering commitment to delivering sustainable value to our stakeholders," Mulandi stated.
He further emphasized that the strong results are underpinned by strategic investments that position NCBA for even greater impact in the upcoming fiscal year.
The financial report also indicated a strengthening of the bank's balance sheet, which grew by 13% to close at UGX 963 billion.
This expansion was primarily fuelled by the growth in customer deposits and a significant 90% increase in recoveries during the year.
Furthermore, NCBA Bank Uganda demonstrated improved asset quality, leading to a reduction in credit impairment charges.
The Non-Performing Loan (NPL) ratio decreased from 6.4% in December 2023 to 3.8% in 2024, signalling enhanced risk management and a healthier loan portfolio.
The financial results underscore NCBA Bank Uganda's strong operational efficiency and its ability to navigate the dynamic economic landscape, positioning it for continued growth and contribution to the Ugandan financial sector.
President Yoweri Museveni has held a high-level meeting with a delegation from MTN Group at State House Entebbe.
Details of the meeting were not readily available but the President said on X handle that he told the MTN delegation that it makes sense for international investors like the MTN Group to put their cash in sectors that generate jobs and raise people’s incomes.
“If people have jobs and incomes, they will buy more phones and use them more. That’s why we must invest in the four key sectors of wealth and job creation; commercial agriculture, manufacturing, services, and ICT. The purchasing power per capita in Africa is still low, and to raise it, we must expand our economic base, not just operate in a narrow business sector,” he said.
“Finally, I encourage MTN and other investors to explore manufacturing partnerships and take advantage of Africa’s emerging opportunities in regional trade and industrialization.”
The MTN delegation expressed gratitude to the President for the warm reception and visionary guidance. Jonas Mcebisi, the Chairman of the MTN Group , reaffirmed the company’s long-term commitment to Uganda and praised the excellent cooperation the company has received from the government and regulatory bodies.
“We just came today to say thank you very much for the support you have always given us. We have had excellent collaboration from the regulators, and MTN is not here for the short term, we are here for the long haul,” he said.
The meeting was also attended by top government officials including line ministers, officials from UCC and the URA.
The MTN team commended the government for its inclusive growth stance through ICT, agriculture, and industrialization, saying it inspires MTN to keep driving meaningful investment in Uganda’s future. “We are grateful for the opportunity to serve the people of Uganda and assure of our deepest commitment to continue to drive the digital progress of this great country,” said MTN Uganda CEO Sylivia Mulinge in a tweet on X.
Meanwhile, MTN Uganda has announced an ambitious nationwide network upgrade aimed at enhancing voice, data, and mobile money services, ensuring customers enjoy a more seamless and superior digital experience.
The three-month initiative, which runs through July 2025, is a key pillar of the company’s broader strategy to strengthen digital connectivity and elevate customer satisfaction across the country.
Mulinge said the exercise is not just about technical enhancements but mainly about empowering everyday life.
“This upgrade is about transforming the daily digital experiences of millions of Ugandans. From students streaming lectures to entrepreneurs managing mobile transactions, our enhanced network will enable every individual to reach their full potential. Together, our network is unstoppable,” Mulinge said.
The officials said the upgrade is being implemented in phases across the country, with the Greater Central region receiving the most extensive improvements at 35%, followed by the West (19%), Southwest (15%), North (12%), East (9%), and Central (9%). This targeted rollout is designed to boost coverage, reliability, and capacity in both densely populated and underserved areas.
To minimize disruption, most upgrade work is scheduled during late-night hours. However, MTN has advised customers to expect occasional temporary service interruptions as enhancements are carried out.
The primary goal of this initiative is to improve the reliability, speed, and clarity of MTN’s core services—including voice calls, high-speed data, mobile money transactions, and enterprise solutions under MTN Business.
The network upgrade is part of MTN Uganda’s long-term commitment to delivering on its Ambition 2025 strategy, reaffirming the company’s vision that, “Together, our network is unstoppable.”
Bayobab Uganda, an MTN Group subsidiary, has unveiled its newest, shortest and fastest fibre optic route - from Malaba to Kampala, marking a significant expansion of digital infrastructure along the East African corridor.
The 260-kilometre route (Kampala to Malaba), built between December 2024 and February 2025, connects Kampala to the Kenyan border where it links directly to Bayobab’s subsea cable landing stations at the Indian Ocean port of Mombasa in Kenya.
Bayobab is the digital infrastructure pillar of the MTN Group and one of the industry leaders that are revolutionising connectivity across the East African Corridor.
Speaking at the official launch of the service in Kampala on Tuesday, officials said the new transformative infrastructure project reinforces MTN’s vision of delivering connectivity to all by expanding its fibre footprint across the markets in which it operates.
Built between December 2024 and February 2025, this route delivers reliable, high-capacity connectivity, completing East Africa’s digital backbone from Kampala to Mombasa and providing an alternative route should the other fibre cables experience a breakdown for different reasons.
The new route supports over 1 terabyte (TB) of capacity and offers low-latency, high-redundancy connectivity to key data centres in Kampala, including Raxio, Airtel House, and MTN Uganda, enabling improved and seamless interconnection options for service providers and hyperscalers, cloud providers and enterprise customers to operate and invest in Uganda.
Sylvia Mulinge, the MTN Uganda CEO, affirmed that the launch of the Kampala–Malaba Fiber Optic Route is a bold statement of MTN’s vision of ensuring that every Ugandan, wherever they live, experiences the benefits of a modern connected life.
“Imagine a startup in Lira testing its mobile app on cloud platforms without delays. A farmer in Kayunga checking real-time weather patterns to guide planting decisions. A remote school in Kisoro livestreaming science lessons from a national university. This is what a modern connected life looks like, and this is what we are enabling,” Mulinge said.
Juliet Nsubuga, the Managing Director of Bayobab Uganda noted that Bayobab Uganda heeded the call for technological transformation across the nation and the region to benefit its communities with reliable and accessible connectivity to the internet.
“In collaboration with the Uganda Railways Corporation, we leveraged the existing rail network to deploy fibre, enhancing connectivity and providing high-speed internet access to communities along the line, connecting key routes between Kampala and Malaba at the Kenyan border - and beyond,” said Nsubuga.
She added: “This new route caters to the needs of international and national technology and digital players, telecoms and ISPs that serve the communities demonstrating our belief that everyone deserves the benefits of a modern, connected life.”
As a landlocked nation, Uganda’s access to high-speed internet and global digital infrastructure relies heavily on cross-border connectivity. This new route provides the shortest and newest connection from Kampala to the Kenya–Uganda border, leveraging the Bayobab Kenya infrastructure to reach Mombasa subsea landing points.
The new fibre route serves as a powerful alternative to existing fibre systems, offering route diversity and significantly improved network reliability through low latency and increased resilience.
Bayobab is a significant player in building and operating pan-African fibre infrastructure. It boasts an extensive network of over 121,000 kilometers of open-access fibre across Africa and the Middle East, connecting numerous landing stations.
In partnership with Africa50, Bayobab is developing a pan-African terrestrial fibre network connecting the eastern and western coasts of Africa, aiming to bridge the connectivity gap and improve broadband access in landlocked countries.
Bayobab heavily relies on strategic partnerships with local and global entities, including Meta, Google, Microsoft, Africa50, and Infobip.
I&M Bank Uganda has demonstrated impressive financial performance for the year ending December 31, 2024, with notable growth across all critical financial indicators, including net profit, assets, revenue, loans and advances, customer deposits, and shareholders' equity.
These strong results come in the wake of positive national economic performance, with Uganda’s GDP expanding by 5.2% in 2024, bolstered by growth in key sectors such as agriculture, services, and industry.
In 2024, I&M Bank Uganda’s profit after tax soared by 77%, reaching UGX 20.3 billion, compared to UGX 11.5 billion in 2023. This growth reflects the bank’s successful strategy of expanding its core business operations, investing in innovative technologies, and enhancing customer experience.
The bank’s total assets also experienced a substantial increase, rising by 16% to UGX 1.1 trillion from UGX 944 billion in the previous year. This solid growth in assets highlights a strengthened financial base and a more diversified portfolio, positioning the bank well for future opportunities in the Ugandan market.
Revenue climbed by 36%, reaching UGX 130 billion from UGX 95.4 billion in 2023. This surge in revenue was primarily driven by growth in the bank’s core business segments, underscoring the effectiveness of its strategic initiatives.
Net loans and advances grew by 35%, reaching UGX 407 billion from UGX 301 billion, as the bank continued to meet the increasing demand for credit among Ugandan businesses and individuals.
Customer deposits, a key indicator of trust and market confidence, rose by 10%, reaching UGX 757 billion from UGX 688 billion in 2023.
This increase reflects the growing loyalty of I&M Bank’s customer base and its ability to maintain strong relationships with clients. Similarly, shareholders’ equity grew by 10%, totaling UGX 219 billion, further strengthening the bank’s capital position and resilience.
Robin Bairstow, CEO of I&M Bank Uganda, remarked that 2024 was a pivotal year for the bank, with the institution achieving significant milestones in both financial performance and customer-focused initiatives. He emphasized that the bank’s success was driven by a series of key investments and innovative advancements.
“In 2024, we upgraded our core banking system, launched a new data center, and introduced enhanced mobile and online banking platforms all within three months. These advancements have provided a robust foundation for offering seamless, customer-centric banking solutions and solidified our position as a leader in innovation,” Bairstow said.
He further elaborated on the successful integration of the Finacle core banking system, which has enabled the bank to enhance service delivery, speed up transactions, and provide more personalized customer interactions.
“The flexibility of this new system allows us to quickly adapt our product offerings to meet customer needs, making banking more accessible and intuitive,” Bairstow explained.
The bank’s new digital platforms, such as OnTheGo internet banking and the Express Go digital account, further support its customer-focused strategy.
The I&M Bank @50 Customer Golden Gala also provided the bank with an opportunity to strengthen its market presence.
Bairstow noted, “The gala allowed us to engage with our customers directly, gaining valuable feedback and insights that will continue to shape our offerings in the future.”
Chief Financial Officer Timothy Musiime also credited the bank’s strong performance to the diligent implementation of its business strategy.
In a ruling that has sent shivers through Uganda’s corporate and legal circles, Justice Lawrence Gidudu of the Anti-Corruption Court has acquitted two directors of ThreeWays Shipping Company who were charged with siphoning $3.8 million (about UGX14 billion) from MTN Uganda’s bank accounts.
The two directors, Geoffrey Bihamaiso and Oscar Baitwa, faced charges of theft and conspiracy to defraud, following the company’s submission of 125 forged invoices to MTN Uganda between 2009 and 2012.
The shipping and forwarding company had been contracted by MTN Uganda to handle its international goods. However, in the course of its business, the company submitted forged invoices and airway bills to MTN, which the telecom giant paid to the ThreeWays account, controlled exclusively by the two ThreeWays bosses.
The case, which has dragged on for almost ten years, involved a total of six suspects, including both MTN Uganda and ThreeWays Shipping employees. However, only the two directors remained on trial, after the others entered plea bargains and refunded some of the stolen money, one died, and others were dismissed.
On April 30, 2025, Justice Lawrence Gidudu delivered the long-awaited judgment, acquitting the accused of all charges, ruling that the prosecution had failed to prove the criminal intent or direct participation of the accused in the theft.
Whereas the judge acknowledged that theft had indeed occurred and that the stolen money as fraudulently transferred from MTN Uganda’s accounts and remitted to the ThreeWays account, he held that the fraud was executed by MTN insiders and low-level employees of ThreeWays Shipping, and that there was no evidence to link the company directors to the crime.
“What was deposited on the accused company’s accounts was stolen money…but there is a missing link to connect the accused to the crime,” the judgement reads in part, adding; “The fact that money was deposited in an account they controlled is not, by itself, proof of intent.”
“Since I have found that theft occurred when money was caused to leave the MTN (U) account, the charges of theft against [(Baitwa and Bihamaiso] without proof of common intention cannot stand.”
The judgment has been met with strong criticism from legal experts, corporate leaders, and anti-corruption advocates who say the court ignored compelling circumstantial evidence. They argued that the directors’ exclusive control of the bank account - used as the “exit facility” for the stolen funds - should have been sufficient to infer knowledge and complicity, especially given the duration and magnitude of the fraud.
“The ruling defies logic,” said one prominent legal analyst. “You cannot accept all the factual and legal underpinnings of a fraud case, and then abruptly absolve those who directly benefited from it—without a coherent explanation.”
Indeed, observers have expressed confusion over the court's apparent internal contradiction—agreeing with the prosecution’s arguments at every legal turn, only to make a dramatic reversal in the final judgment. “What could possibly have changed the mind of the judge at the last minute?” one senior lawyer asked. “It is baffling.”
Legal comparisons have also been drawn between this particular case and Uganda v. Jeff Lawrence Kiwanuka (2017), where the same presiding judge—Justice Gidudu—lifted the ‘corporate veil’ to convict a director for corporate fraud under nearly identical circumstances.
‘Lifting the corporate veil’ means a court may disregard a company's separate legal identity and hold its owners or directors personally liable for the company's actions, particularly in situations involving tax evasion or fraud.
“In Kiwanuka case, the veil was lifted to expose the real beneficiaries of stolen funds,” the senior lawyer noted. “But in this case, despite clear evidence that for three years the accused were withdrawing stolen money from MTN, the judge refused to pierce the veil. Why?”
Analysts insist that when court decisions in cases involving investors don’t make sense, investment suffers as investor confidence in the judiciary’s ability to be a fair arbiter is eroded. Judicial independence is regarded as one of the key parameters when assessing a country’s investment climate, which encompass a broad range of factors that influence the attractiveness of a country for investment. The rising vice of ‘white color crime’ is particularly disturbing particularly targeting top investors such as telecom companies and financial institutions.
MTN declined to comment when contacted saying the matter is a criminal case, which lies in the DPP’s docket. However, legal experts argue that the evidence—particularly the flow of money, control of the account, and circumstantial proof of benefit—justifies a Court of Appeal review of the irrational court decision. Efforts to reach the DPP’s office for a comment proved futile. But with wavering public trust, this ruling to the effect that directors cannot be culpable even when stolen money is deposited on their bank account, may set a dangerous precedent in relation to how Uganda fights white-collar crime.
Uganda has recorded its highest-ever annual revenue from coffee exports, earning UGX6.7 trillion (US$1.84 billion) from 6.87 million 60-kilogram bags between April 2024 and March 2025.
According to the latest report published by the Ministry of Agriculture, Animal Industry and Fisheries, this marks a 14.86% increase in volume and a staggering 84.12% rise in value compared to the previous year, when the country exported 5.99 million bags worth US$ 999.48 million.
The strong performance was driven by a robust export showing in March 2025, when the country shipped 642,981 bags valued at UGX727.86 billion (US$ 198.62 million).
Of these, 525,220 bags were Robusta coffee earning US$ 155.53 million, while Arabica exports contributed 117,761 bags worth US$ 43.09 million. Compared to the same month last year, this represented a 92.19% increase in volume and 202.52% in value.
Robusta exports jumped by 111.39% in quantity and 233.40% in value, while Arabica rose by 36.79% and 126.73%, respectively.
The Ministry attributes the growth in exports to a good harvest and favorable global market conditions.
Dry weather in Brazil and Vietnam key producers of Arabica and Robusta has created uncertainty in global supply chains, pushing international coffee prices to new highs.
Uganda’s average export price in March stood at US$ 5.15 per kilogram, 12 cents higher than in February and US$ 1.88 above the March 2024 price of US$ 3.27.
Robusta coffee averaged US$ 4.94 per kilo, with Washed Robusta fetching the highest price at US$ 5.65 per kilo, followed closely by Screen 14 Fair Trade Organic at US$ 5.63. However, the share of sustainable or washed Robusta in total exports dipped slightly to 0.38% from 0.44% in January.
Arabica coffee fetched a higher average price of US$ 6.10 per kilo, up from US$ 5.06 in February. The premium Mt. Elgon A+ variety sold for as much as US$ 7.55 per kilo, followed by Rwenzori CPB at US$ 7.26 and Drugar at US$ 6.67.
Drugar made up 39% of total Arabica exports, rising from 21% the previous month. Sustainable Arabica exports accounted for 10%, up from 9% in February.
Ugacof (U) Ltd maintained its position as Uganda’s topmost coffee exporter, with a 12.35% market share, slightly down from 12.96% in February.
Other key exporters included Olam Uganda Ltd at 7.67%, Ideal Quality Commodities Ltd at 7.43%, Export Trading Company (U) Ltd at 6.86%, and JKCC at 6.40%.
They were followed by Louis Dreyfus (U) Ltd at 6.15%, Jber Coffee Ltd at 6.08%, Kyagalanyi Coffee Ltd at 5.90%, Kawacom (U) Ltd at 5.11%, and Ibero (U) Ltd at 4.33%.
Together, these top ten exporters controlled 68% of the market slightly less than the 71% recorded in February signalling growing competition in the sector. Of the 80 exporters who shipped coffee in March, 37 traded only in Robusta, 17 focused exclusively on Arabica, while the rest handled both types.
This milestone solidifies Uganda’s position as Africa’s top coffee exporter by volume and highlights coffee’s increasing importance as a pillar of the national economy.
Last week, I revisited Uganda’s National Broadband Policy of 2018—and what I found was a compelling vision still waiting to be fully realised.
The policy aims high. It promises to make fast, affordable, and reliable internet access available to all Ugandans—urban and rural, rich and poor. It recognises broadband not merely as a technical resource but as a national asset that underpins education, business, health, governance, and innovation.
At its heart, the policy is about equity. It’s about enabling every Ugandan to participate in the digital economy—whether that’s a student attending online classes, a farmer accessing market prices, or a nurse updating patient records from a remote health centre. And, as I was reminded recently, it’s also about small businesses rewriting their future.
One such story comes from Nakasero Market in central Kampala. During a recent market visit aimed at understanding why some customers abandon certain products, one vendor shared her experience with our team. She explained that she had previously relied on MTN Uganda's micro-loans to finance her business. However, she no longer needed to borrow, as access to these micro-loans and connectivity through smartphones had helped her business flourish.
But these stories, while inspiring, are still too rare. The data tells a sobering truth: Uganda’s smartphone penetration is still far behind regional peers. According to the Uganda Communications Commission’s Q4 2024 report, only 18.2 million of 51 million mobile subscribers use smartphones—a rate of 35.6%. This is well below Kenya’s 72.6% and significantly behind South Africa’s 90%+ penetration.
The reasons aren’t hard to find. While Uganda’s mobile networks continue to expand, the cost of accessing smartphones remains steep. Combined taxes on devices—import duties, VAT, and other levies—can raise retail prices by up to 33%. For many Ugandans, this makes smartphones unaffordable, turning digital access into a luxury rather than a basic service.
Other countries have taken bolder approaches. Kenya, for instance, initially scrapped import duties on smartphones, helping to drive adoption early. Even after taxes were reintroduced in 2022, the country had already built a strong digital foundation. South Africa recently removed a 9% excise duty on affordable smartphones to help lower-income earners get online.
Other countries have taken bolder approaches. Kenya, for instance, initially scrapped import duties on smartphones, helping to drive adoption early. Even after taxes were reintroduced in 2022, the country had already built a strong digital foundation. South Africa recently removed a 9% excise duty on affordable smartphones to help lower-income earners get online.
The private sector, to its credit, is finding creative ways to address affordability. For instance, MTN Uganda’s “Kabode Supa” smartphone—offered on an instalment payment model—is a step in the right direction. By spreading out the cost, it brings smart devices within reach of more people.
But such innovations, however helpful, cannot replace deliberate national policy. Uganda must now consider a bold rethinking of how we tax smartphones and digital devices. Temporarily waiving or significantly reducing import taxes and VAT on budget smartphones could spark a wave of adoption. Fortunately, the National Development Plan IV has acknowledged these challenges and proposed strong measures that, once implemented, could significantly transform Uganda’s digital landscape. I am confident that with these efforts, more Ugandans will come online, and more entrepreneurs — like the Nakasero vendor — will be empowered.
Of course, access alone is not enough. Digital literacy—knowing how to use the tools and navigate the online world—is equally important. Citizens need to be able to use smartphones not just for social media, but for learning, banking, accessing government services, and growing businesses. A national digital literacy push is long overdue.
Other countries offer a useful blueprint. In South Korea, over 95% of the population owns a smartphone, supported by extensive broadband infrastructure and strong digital education. The UAE keeps taxes on smartphones low and maintains one of the highest connectivity rates globally. Even countries with high VAT, like Sweden or Denmark, make up for it with universal digital education and widespread access to affordable devices.
Uganda, too, can lead—if it takes coordinated action. That means not just lowering the cost of access, but also building out broadband infrastructure, supporting local content creation, and scaling digital training across the country. The potential is there. What’s needed is the political will to turn ambition into action. The National Broadband Policy gives us the roadmap. Now we must build the road.
Uganda’s journey toward a connected future hinges on deliberate choices made today. Reduce the cost of entry or make environment so conducive for local production of quality devices. Equip our people with digital skills. Strengthen partnerships across government, business, and civil society. When we do that, we’ll stop talking about digital inclusion as a goal—and start living it as a reality.
Sylvia Mulinge is the Chief Executive Officer at MTN Uganda.
MTN Uganda’s corporate social responsibility arm, MTN Foundation, has handed over a state-of-the-art computer lab to the Code Compass Foundation in Mbuya, Nakawa Division, as part of its ongoing effort to bridge the digital divide through its Digital Access Program.
The event, which also celebrated the graduation of learners from the MTN Skills Academy, coincided with the global commemoration of International Girls in ICT Day—a fitting backdrop to MTN’s continued investment in digital inclusion and gender equality.
The event, which also celebrated the graduation of learners from the MTN Skills Academy, coincided with the global commemoration of International Girls in ICT Day—a fitting backdrop to MTN’s continued investment in digital inclusion and gender equality.
Brian Mbasa, Senior Manager at MTN Foundation, emphasized the transformative potential of digital access:
“We at MTN Uganda believe that access to digital tools—such as computers and the internet—will unlock a world of possibilities, opportunities, and hope for our youth,” he said.
“With Uganda’s population being one of the youngest in the world, we cannot afford to let our young people be excluded from the digital economy of tomorrow.”
Maria Angella Aboyo, the founder of Code Compass Foundation, expressed her heartfelt appreciation to MTN Uganda for their support, highlighting the lasting impact it will have on empowering young girls in the surrounding communities.
“We extend our sincere gratitude to MTN Uganda for joining us in celebrating this milestone at Code Compass Foundation and for their generous donation of a fully equipped ICT Lab. This state-of-the-art facility will provide a safe and innovative environment where our students—particularly young girls—can develop hands-on skills in coding, robotics, AI, web development, and more,” she stated.
Code Compass Foundation is one of six centers across Uganda benefiting from MTN’s UGX 390 million Digital Access Project. Other beneficiaries include Tunaweza Foundation in Nyanama, Revival Girls High School in Mbarara, St. Catherine Girls in Kazo, St. Joseph’s Seminary in Nyenga, and the soon-to-be-launched lab at St. John’s Secondary School in Sheema.
Together, these hubs are helping create a national ecosystem of digital inclusion and empowerment.
In addition to physical infrastructure, learners at Code Compass will now access the MTN Skills Academy—a digital learning platform offering courses in technology, entrepreneurship, and essential life skills designed to prepare young people for success in the 21st century.
MTN also commended the Foundation’s holistic approach, highlighting the inclusion of mental health and wellness programs run in partnership with Strong Minds.
“We understand that thriving in the digital world requires not just technical skills but emotional resilience. That’s why we’re proud to support programs that nurture both head and heart,” Mbasa added.
The initiative forms part of MTN Uganda’s broader Ambition 2025 Strategy, which prioritizes inclusive access to digital and financial solutions for all Ugandans. It also aligns with the Government’s Vision 2040, the National Development Plan III, and the United Nations Sustainable Development Goals—all of which are focused on transforming lives and driving inclusive growth.
MTN Uganda executives called on stakeholders in government, civil society, and the private sector to collaborate more closely to realize national and global development goals.
MTN Uganda has since 2015 facilitated the establishment of 63 ICT labs nationwide, including nine in technical institutes, reinforcing its long-standing commitment to inclusive and accessible education for all.
Finance Trust Bank (FTB) has demonstrated a compelling financial performance in 2024, reporting an exceptional 178% surge in after-tax profits, climbing to UGX 10.36 billion from UGX 3.73 billion in the preceding year.
This dramatic leap underscores the efficacy of the bank's strategic initiatives, customer-centric approach, and dedicated investments, particularly in women's economic empowerment.
The impending acquisition of an 80% stake by Access Bank Plc, coupled with a planned capital injection, further positions FTB for accelerated expansion and an amplified role in Uganda's financial landscape.
The bank's key financial indicators paint a picture of robust growth and operational efficiency. Total assets experienced a substantial 18% increase, reaching UGX 551 billion, while customer deposits saw a healthy 23% rise to UGX 340.75 billion.
Additionally, the net loan portfolio expanded by 22% to UGX 356.34 billion, demonstrating FTB's commitment to extending credit and fostering economic activity.
Speaking at the presentation of the results, Managing Director Annet Nakawunde expressed an optimistic outlook for FTB's future, buoyed by the strong 2024 results and the strategic Access Bank partnership.
She said the anticipated changes in the banking landscape, driven by this acquisition, hold the potential to enhance financial inclusion and stimulate economic growth across Uganda.
FTB's unwavering commitment to its mission of putting women first in its drive for economic and social empowerment, coupled with its strategic vision and operational efficiency, positions it as a significant contributor to Uganda's economic development in the years to come.
A cornerstone of FTB's success lies in its strategic collaborations. Partnerships with entities such as MTN Uganda, the Federation of Uganda Football Associations (FUFA), and the Nnabagereka Development Foundation have demonstrably fueled growth and broadened the bank's reach.
The GROW Project, a collaborative effort with the World Bank and Uganda’s Ministry of Gender, has been instrumental in disbursing UGX14 billion in low-interest loans to over 300 women entrepreneurs.
Economic experts emphasize the multiplier effect of such targeted financial inclusion.
Sarah Wanyana, a senior economist at Makerere University, said: "Financial institutions that prioritize women's economic empowerment play a crucial role in unlocking untapped potential. By providing access to credit and financial literacy, they enable women to start and grow businesses, generate income, and contribute significantly to household welfare and national GDP."
Commenting on the merger with Access Bank of Nigeria, Kwame Asare, a financial analyst at Stanbic Bank Uganda, was also optimistic that it would spur the bank further.
"The entry of a well-capitalized and Pan-African bank like Access Bank into Finance Trust Bank is a positive development for the Ugandan financial sector,” he said.
“It not only strengthens FTB's capacity to lend and expand its reach but also introduces new expertise and potentially innovative financial products, ultimately fostering greater competition and benefiting consumers and businesses."
The Uganda Bankers Association (UBA) has established the Financial Sector Anti-Fraud Consortium, a collaborative initiative designed to proactively address the escalating threat of financial cybercrime.
This unified consortium integrates key stakeholders, including regulatory bodies, supervised financial institutions, payment service providers, law enforcement agencies, and the public, to foster a cohesive and robust framework for the anticipation, detection, prevention, and consistent response to financial fraud.
Speaking at the launch, Twinemanzi Tumubweine, Executive Director of National Payment Systems at the Bank of Uganda and Chairman of the Financial Sector Anti-Fraud Consortium, underscored the consortium's mandate to fortify regulatory defenses against fraudulent activities and enhance public confidence in the financial ecosystem.
Tumubweine further articulated the consortium's intent to propose stringent measures, including a comprehensive prohibition on individuals convicted of fraud-related offenses from accessing financial services or holding telecommunication numbers for a defined period.
Ronald Azairwe, Chief Executive Officer of Pegasus Technologies, highlighted a key operational priority: capacity building within the Judiciary and the Criminal Investigations Directorate (CID) through targeted training programs to improve their efficacy in handling sophisticated cybercrime cases.
Azairwe emphasized the consortium's assessment that current cybercrime legislation lacks sufficient deterrent effect. Consequently, the initiative will actively engage Members of Parliament to advocate for the enactment of more robust and punitive legal measures.
Jane Frances Abodo, the Director of Public Prosecution, affirmed the significance of the consortium as a pivotal and unified response to the pervasive challenge of financial crime, which poses a systemic risk to the nation's economic integrity.
"The landscape of financial fraud has evolved into a sophisticated, transnational criminal enterprise. Our current efforts, often operating in isolation, necessitate a coordinated and collaborative approach," said Abodo.
Abodo revealed that that Uganda incurs annual losses ranging from UGX 2.4 billion to UGX 25 billion due to bank fraud, cautioning that the burgeoning digital economy would remain vulnerable without concerted action.
She pledged the commitment of the DPP to streamline evidence sharing and expedite the prosecution of financial fraud cases in collaboration with the Anti-Fraud Consortium.
Chelimo Beata, Deputy Director at the CID, acknowledged existing operational challenges, including deficiencies in specialized cybercrime training. She noted that the limited number of officers equipped to handle such complex cases contrasts sharply with the sophistication, resources, and networks of modern fraudsters.
Wilbrod Owor, Chief Executive Director of the Uganda Bankers Association, urged member financial institutions to implement and maintain robust anti-fraud mechanisms and actively participate in intelligence sharing regarding fraud incidents.
Referencing the Police Annual Crime Report 2024, Mr. Owor highlighted the significant economic impact of cybercrime, revealing losses of UGX 72 billion from 474 reported cases.
The establishment of the Financial Sector Anti-Fraud Consortium signifies a proactive and unified commitment to safeguarding Uganda's financial sector and fostering a secure digital economy for all stakeholders.
As of December 31, 2024, Uganda’s forex bureau and money remittance sub-sector had handled foreign currency transactions worth UGX17.82 trillion, reflecting the growing role of this non-bank financial segment in facilitating trade, household welfare, and economic resilience.
Mackay Aomu, the Director of the Non-Bank Financial Institutions Department at Bank of Uganda, told participants at a recent capacity-building workshop for directors and managers of forex bureaus and money remittance businesses that that remittance inflows reached USD 921.76 million (approximately UGX 3.48 trillion), while outflows stood at USD 214.45 million (around UGX 810 billion).
These figures underscore the growing significance of the sub-sector as a critical source of foreign exchange, especially at a time when international remittances are gaining prominence as a pillar of household income and national economic stability.
“Many market participants consider forex bureaus and money remittance businesses more accessible compared to other financial institutions,” said Aomu, highlighting the sector’s inclusivity and grassroots reach, particularly for underserved communities and those without formal banking access.
The forex and money remittance sub-sector currently comprises 292 licensed entities, of which 192 operate purely as forex bureaus, 90 offer both forex and money remittance services, and ten specialize in money remittance services alone.
These businesses serve as key intermediaries, linking Ugandans to international financial systems whether for trade, education, healthcare, or family support.
Remittances, especially those sent by Ugandans in the diaspora, continue to be a vital source of household income, contributing to improved education outcomes, access to health services, and investments in small businesses.
The USD921.76 million in inflows in 2024 represent not just money sent home but also potential capital that can drive consumption, domestic investment, and financial inclusion.
Beyond individual welfare, these inflows support macroeconomic stability. By supplementing the country's foreign exchange reserves, remittances help reduce dependence on external debt and buffer the Ugandan shilling against volatility.
Additionally, by channelling funds into the formal economy through licensed forex bureaus and remittance businesses, the sub-sector ensures better tracking, transparency, and contribution to the tax base.
Despite these promising figures, Aomu highlighted several to regulatory challenges. He emphasized the need for licensed operators to strengthen their relationship with external auditors, ensure full compliance with the Foreign Exchange Act Cap. 167, and address weaknesses in statutory reporting.
“There are gaps in statutory reporting that must be urgently addressed to enhance the integrity and performance of this sub-sector,” Aomu stated.
The workshop, organized by Bank of Uganda, specifically targeted these concerns by equipping licensees with knowledge on compliance frameworks, reporting obligations, and risk management practices.
Stakeholders were urged to uphold financial reporting standards, especially as the sector continues to grow in complexity and value.
Strengthening data reporting and regulatory oversight are important as they would help Uganda leverage on the many benefits of the s sub-sector not just for foreign exchange stability but also as a reliable channel for development finance, diaspora investment, and private sector growth.
With continued support from the Central bank and greater cooperation from licensees, the forex bureau and remittance sector is set to become a more powerful engine of economic resilience and inclusive growth for Uganda.
Uganda’s tourism sector registered significant growth in 2024, with international tourist receipts rising by more than 25% to reach UGX4.8 trillion, up from UGX 3.8 trillion a year earlier.
According to the 2025 Tourism Trends and Statistical Report, the surge in earnings was driven by longer stays of 8.7 nights on average, compared to 8.3 the previous year and an increase in daily tourist expenditure from UGX407,000 ($110) to UGX 462,500 ($125).
The report says the figures underline a strong post-pandemic recovery, signalling the growing appeal of Uganda as a high-value destination. The sector’s contribution to total exports rose to 16%, underlining its economic significance.
The report shows that Uganda earned more per tourist in 2024 than ever before, demonstrating a strategic shift in tourism development.
“This performance reflects not only recovery but strategic progress. The shift toward attracting higher-spending tourists and enhancing in-country value captures a sustainable approach to tourism development that Uganda will continue to build on,” the report states.
International arrivals rose to 1,371,895 visitors in 2024, a 7.7% increase from 1,274,210 the year before. This brought Uganda to 89.2% recovery of pre-pandemic 2019 levels, with a full return projected by the end of 2025.
The leisure segment was a major driver, increasing its share from 15.8% to 19.2% of arrivals, and posting a 33% growth, thanks to intensified destination marketing by the government.
Tourists primarily spent on accommodation, food and beverage, passenger transport, and travel agency services, which together accounted for 79.8% of total tourist expenditure.
This means that nearly 80 cents of every tourism shilling earned in Uganda was injected directly into the hospitality, transport, and booking service sectors, reinforcing the need for continued investment in these areas to maximize economic gains.
In terms of broader economic impact, the tourism sector’s direct contribution to Uganda’s GDP was UGX 6.06 trillion, equivalent to 3.2% of the national output. The overall sectoral contribution was 6.6%, while tourism investments accounted for 17.2% of total national investments, or UGX 7.458 billion in value.
Employment in the sector also soared. Tourism directly supported over 803,000 jobs, accounting for 7.2% of total national employment. This represents a 31.6% increase over 2022.
With one in every 13 working Ugandans directly employed in tourism, the industry continues to serve as a critical livelihood source. According to the report, 1.8% of Uganda’s population is employed directly in tourism-related roles.
Domestic tourism also experienced healthy growth, increasing by 5.2% in 2024. An estimated 2.8 million Ugandans engaged in domestic travel, staying an average of six nights. Visits to national parks, cultural sites, and the Uganda Wildlife Education Centre (UWEC) reached 997,152, with national park visits alone increasing by 15.7% to 244,843, signalling growing interest in local nature and wildlife experiences.
These trends confirm Uganda’s tourism sector as a pillar of national development and a key player in driving economic resilience.
With sustained investment, strategic marketing, and a shift towards high-yield tourism, there is evidence of recovery of the country’s tourism sector and a cementing of its place as one of Africa’s leading tourist destinations.
Uganda requires a massive capital injection of UGX 23 trillion if it is to achieve universal electricity access by 2040, Sidronious Okasaai Opolot, State Minister for Energy, has said.
“Uganda needs a capital injection of UGX 23 trillion if we are to achieve universal electricity access by 2040. This investment is not optional—it is essential for powering our homes, transforming our economy, and delivering social services to every corner of the country,” Okasaai said.
The minister was speaking at the 2025 Energy Access Investment Forum (EAIF) in Kampala, which brought together policy makers and implementers, investors, and energy stakeholders to strategize on scaling up access to modern energy services.
Despite past achievements, including USD 1.5 billion (approx. UGX 5.7 trillion) invested in the energy sector over the last decade, the minister emphasized that the country still faces a significant funding shortfall. He stressed the urgency of private sector involvement, alongside development partners, to bridge this gap.
“We’re investing across generation, transmission, and distribution, but we need greater collaboration and financing especially from the private sector to deliver on our promise of universal energy access,” he added.
Uganda’s current electricity access rate stands at 47.1% of the population, with significant disparities between urban and rural areas. The government has set a target of universal household connections by 2030, with an intermediate target of 51% rural access by 2030 and 100% national access by 2040, as outlined in the Rural Electrification Strategy and Plan.
The roadmap includes expanding both grid and off-grid solutions. According to the National Electrification Strategy, Uganda aims to achieve 60% grid-based access and 33% off-grid access by 2027. Key enablers will include solar mini-grids, standalone home systems, and clean cooking technologies.
One of the flagship programs driving this effort is the Uganda Energy Access Scale-up Project (EASP), funded by the World Bank. The project prioritizes refugee settlements and underserved rural communities, while promoting productive uses of electricity in businesses, schools, and health centers.
“This is about productive use of electricity, not just lighting homes,” said Okasaai. “We want to power businesses, schools, health centers—and in doing so, boost economic activity.”
Speaking at the event, David Lecoque, CEO of the Alliance for Rural Electrification (ARE), said Uganda's vision aligns with continental trends in sustainable energy.
“The energy transition in Africa is not only possible—it’s already happening. Uganda is poised to lead, but it must create an enabling environment for investment,” Lecoque said.
Private sector players stressed the need for access to affordable credit, risk guarantees, and technology transfer. Carol Koech from Schneider Electric urged support for local entrepreneurs and flexible financing models to unlock growth and sustainability in the sector.
Jan Sadek, the EU Head of Delegation to Uganda, reiterated Europe’s commitment to Uganda’s energy goals through grants and concessional loans.
“We’re supporting Uganda not just with grants, but also concessional loans to scale access, promote clean cooking, and protect the environment for future generations,” Sadek said.
EAIF 2025 was organised by the Alliance for Rural Electrification (ARE), co-hosted by the European Union (EU) through its Global Gateway initiative and under the patronage of Ministry of Energy and Mineral Development of Uganda (MEMD). The event is supported by GET.invest, a European programme that mobilises investments in renewable energy.
GET.invest is co-funded by the European Union, and the Governments of Germany, Norway, the Netherlands, Sweden, and Austria.
In a significant move to enhance customer convenience, Old Mutual Life Assurance has partnered with Airtel Uganda to introduce a new digital payment solution through Old Mutual customers can make instant and secure premium payments via Airtel Money.
Apart from paying using the Airtel Money platform, customers will also be able to set up automated standing orders directly from their Airtel Money wallets, thus streamlining the payment process and eliminating the complexities associated with traditional bank standing orders.
Speaking at the launch, Joshua Akena, Head of Operations at Old Mutual, emphasized the customer-centric approach of this innovation, stating that it places "convenience in the hands of our customers."
He highlighted the ease of making payments from anywhere and the "peace of mind and full control" offered by the automatic payment setup.
This partnership aligns with Airtel Money's broader strategy to digitize the Ugandan economy and promote financial inclusion.
As of 2023, Uganda's financial inclusion rate stood at around 52%, with a significant portion of the adult population utilizing informal financial services.
By integrating insurance premium payments into a widely used mobile money platform, Old Mutual and Airtel Money are making essential financial services more accessible to a larger segment of the population.
Japhet Aritho, Managing Director of Airtel Mobile Commerce Uganda Limited (AMCUL), echoed this sentiment, emphasizing Airtel Money's commitment to "simplify everyday financial services while deepening financial inclusion across the nation."
He added, “The flexibility and control we’re giving customers means they can choose when their policy is debited each month. Even if they’ve travelled abroad, our borderless policy ensures continuous coverage.
The introduction of this digital payment solution is a significant step towards modernizing the insurance industry in Uganda.
In the first half of 2024, the Ugandan insurance sector saw a gross written premium of UGX 933.8 billion, with life insurance contributing UGX 357.8 billion, marking a substantial growth of 22.97% compared to the same period in the previous year.
This growth underscores the increasing importance of life insurance in the country, and the new digital payment option is poised to further drive accessibility and uptake by simplifying the payment process for policyholders.
By leveraging the extensive reach of Airtel Money and the technological capabilities of NxtPe, Old Mutual is taking a decisive step towards a more connected and financially empowered Uganda, ensuring that more individuals can secure their financial future with greater ease and convenience.
Watu Uganda, a leading asset-financing company, has officially launched a specialized motorcycle riding school in Fort Portal City in western Uganda.
The school, which now brings the total number of such facilities to two, in addition to the one in Kampala, is dedicated to providing accessible, high-quality motorcycle training to enhance road safety and support the development of safe, skilled riders in Uganda, particularly in the boda boda (motorcycle taxi) sector.
Speaking at the launch in Fort Portal City on April 11, Christian Kamukama, the head of Commercial at Watu Uganda, highlighted the school’s mission to close the skills gap in the motorcycle sector, aiming to boost road safety and support youth in securing sustainable livelihoods.
“Fort Portal City is an ideal launch location for Watu Shule in Western Uganda. We’re confident this initiative will empower local riders, improve road safety, and drive economic growth,” Kamukama stated. He said the school will support parts of western Uganda, including the districts of Masaka, Kagadi, Hoima and others.
As part of its impact strategy, Watu introduced Watu Shule, a riding school that trains motorcycle riders—especially boda boda operators—on road safety, responsible driving, and professional conduct, aiming to reduce accidents and enhance road safety across Uganda’s transport sector.
Since its inception, Watu Shule has enrolled over 3,000 clients, with more than 250 riders enrolling since the company opened its branch Fort Portal branch in December. This initiative is particularly critical given Uganda’s alarming road safety statistics.
In 2023 alone, the Directorate of Traffic and Road Safety of the Uganda Police Force recorded 23,600 crashes, with over 4,000 fatalities and 4,806 fatal casualties. Shockingly, motorcycles were involved in 36% of these crashes, and motorcycle riders and passengers accounted for over 45% of the victims.
Moreover, 52% of these crashes were caused by careless overtaking and speeding, highlighting the urgent need for structured road safety education.
ASP Atwijuke Bannet, the Fort Portal Road Traffic Commander, commended Watu Shule’s initiative, stating, “This school will strengthen road safety in the entire region by providing quality motorcycle training and critical skills for safe and responsible riding. As the police, we are committed to collaborating with Watu Shule to enhance road safety.”
With road traffic fatalities in Uganda having risen by 10% over the past decade, motorcycles are involved in nearly 45% of these incidents. Uganda’s boda boda sector, supporting over two million riders, faces ongoing challenges related to safety and regulatory compliance.
Through its specialized training, Watu Shule is actively addressing these challenges by instilling safer riding habits, improving awareness of traffic regulations, and ensuring that riders receive the necessary skills and permits to operate responsibly on Uganda’s roads.
Watu Shule’s program offers a comprehensive curriculum that includes both theoretical and hands-on training, covering essential areas such as motorcycle operation, traffic regulations, and safe riding practices.
This holistic approach is designed to equip riders with the skills and knowledge to navigate Uganda's roads responsibly, reducing the risks associated with motorcycle riding.
To further support its trainees, Watu Uganda has partnered with the Ministry of Works and Transport to assist riders with the licensing process, ensuring a smooth transition into their careers as qualified, legally compliant riders.
This collaboration aims to reduce the number of unlicensed riders on the roads, enhance overall road safety, and promote adherence to traffic regulations.
The launch of Watu Shule in Fort Portal is part of a larger initiative by Watu Uganda to expand motorcycle training schools across the country. The vision is to establish Watu Shule as Uganda's leading motorcycle riding school and set new standards for quality and safety in the industry.
It was former British Prime Minister Winston Churchill's who famously described Uganda as a "beautiful garden" where its “staple food grows almost effortlessly.”
Indeed, Uganda is the second largest producer of bananas in the world, with the staple crop thriving in most parts of the country with minimal labour input.
Estimates show that Uganda produces over ten million tons of bananas every year, of which 70% is consumed at household level while just 30% is sold. At a per capita consumption of 220-400 kg annually, Ugandans consume more bananas per person than any other country in the world. It is estimated that the crop supplies up to 30% of the daily calorie intake of Ugandans.
In the early 2000s, research carried out on green bananas by scientists at the Makerere University Food Science and Technology Department unveiled the immense potential that the abundant perennial food crop had for poverty alleviation and national development.
Thanks to its asynchronous fruiting (bearing fruit throughout the year), the banana crop delivers an endless supply of food and income – helping to make a significant contribution to both food security and household incomes throughout the year.
However, most of the green banana crop is either not harvested at all or lost after harvest, mainly because unlike other stapple foods such as rice, cassava, millet and sorghum, bananas must be eaten fresh.
In 2005, President Yoweri Museveni directed the establishment of the Presidential Initiative on Banana Industrial Development (PIBID) to build on the work done by the Makerere University scientists, aimed at spearheading value addition to green bananas to reduce wastage.
A research facility was consequently established in Bushenyi District in western Uganda to champion the process. To date, the Banana Industrial Research and Development Center (BIRDC) is championing the banana value chain by producing ‘Tooke’ Flour - for sale on the local and international markets - as well as producing various products including biscuits, mandaazi, cakes, doughnuts, crisps, bread, and cakes.
Banana flour, which is a good source of essential vitamins and minerals such as potassium, magnesium, and Vitamin C, may also be used in various culinary applications such as preparing mouthwatering porridge, soups, stews and sauces at restaurants and high-end hotels.
Additionally, bananas may also be processed into packed juice, beer, and wine, which can be marketed locally and internationally.
In a global market place that is suffocating on gluten-laden wheat products, banana flour is said to present a healthier alternative, which offers a great opportunity for banana farmers countrywide, leave alone creating employment and business opportunities for the youth, distributors and retailers of the value-added products.
Apart from foreign exchange from the export market, banana value-addition also presents technology transfer benefits given that the processes of primary value addition, training and certification can spread countrywide – thus spreading the crop to other regions where banana growing was not practiced.
The other benefit is that of further research to produce improved banana varieties or drought and pest-resistant hybrids – all of which translate into more cash for farmers.
Unlike wheat whose production typically makes a significant environmental impact because of the large-scale use of machines, pesticides and fertilizers on large farms, banana growing happens almost naturally. That presents an important environmental benefit in a world that is doing everything to mitigate deadly climate change effects.
Experts say that by further improving farm productivity as well as the quality of banana products, Uganda has the potential to become the leading exporter of banana products in the world.
Clearly, the future of banana flour looks promising, as new processing techniques and processes are set to improve the efficiency and cost-effectiveness of banana value addition. With proper handling, branding, marketing, and consumer awareness, banana value addition has the potential to command bigger spaces on supermarket shelves locally and around the world, which would translate into higher incomes for farmers and households.
Government of Uganda has strategically released UGX 19.79 trillion for the fourth and final quarter (April-June 2025) of the Financial Year 2024/25. The capital injection represents about 25.6% of the revised national budget.
Speaking at a budget release briefing, the Permanent Secretary/Secretary to the Treasury, Ramathan Ggoobi, said the expenditure package encompasses UGX8.9 trillion allocated to critical recurrent and development expenditures, covering essential areas such as public sector remuneration, operational costs, and ongoing development projects.
Furthermore, the release incorporates UGX2.677 trillion sourced from external financing, complementing the UGX 8.126 trillion earmarked for debt management and treasury operations. An additional UGX 83.85 billion has been designated from local revenue streams.
Ggoobi underscored the government's commitment to timely disbursements and strategic resource allocation. "A significant UGX 1.993 trillion has been specifically allocated to ensure the seamless and timely disbursement of wages and salaries across all government ministries and agencies," stated Ggoobi. "This allocation is paramount to maintaining operational efficiency and supporting our dedicated public servants."
The fiscal strategy also prioritizes institutional support, with UGX 288.75 billion allocated for pensions and gratuities. Key institutions vital to governance and democratic processes received significant allocations, including Parliament (UGX 172.64 billion), the Electoral Commission (UGX 94.22 billion), and the Judiciary (UGX 58.23 billion).
Demonstrating a firm focus on Uganda's long-term development trajectory, substantial funds have been channelled towards key strategic sectors. Agro-industrialization has received a significant boost with an allocation of UGX 524.68 billion, of which UGX 130.77 billion is dedicated to operational activities and vital research, while UGX 393.91 billion will directly support transformative development projects within the sector.
"Our investment in agro-industrialization is fundamental to realizing Uganda's ambition of enhanced agricultural productivity and a robust industrial base," Mr. Ggoobi emphasized.
Recognizing the pivotal role of tourism in economic diversification, the Ministry of Tourism, Wildlife, and Antiquities has been allocated UGX 41.12 billion. "This funding is strategically directed towards the development of critical tourism infrastructure, including the Source of the Nile project, which is instrumental in fostering sustainable tourism and driving economic growth," Ggoobi said.
Furthermore, the government is strategically investing in mineral-based industrial development, allocating UGX 224 billion to the Uganda National Oil Company (UNOC) and the Petroleum Authority of Uganda. This investment aims to bolster Uganda's burgeoning oil and gas sector and unlock its potential for economic advancement.
Embracing the digital era, the Ministry of ICT and National Guidance will receive UGX 169.31 billion, with a clear focus on expanding last-mile connectivity through the Uganda Digital Acceleration Project (UDAP) and fostering the growth of the science and technology economy.
National security remains a priority sector, evidenced by the UGX 1.05 trillion allocated to the Ministry of Defence and Veteran Affairs. Other key security agencies, such as the Uganda Police Force and the Uganda Prisons Service, have also received substantial financial support to enhance law enforcement capabilities and strengthen correctional services.
Infrastructure development, a cornerstone of Uganda's economic strategy, continues to receive significant investment, with UGX 2.11 trillion allocated to the Ministry of Works and Transport. "These funds will be instrumental in advancing major infrastructure projects, including the National Roads construction program and the strategic Standard Gauge Railway implementation," said Ggoobi.
The health sector has been allocated UGX 303.46 billion to support critical vaccination initiatives, the development of essential healthcare infrastructure, and the procurement of vital medical supplies. Additionally, UGX 110.65 billion will be directed to the National Medical Stores to ensure the availability of necessary drugs and medicines for the population.
To support human capital development, the Ministry of Education and Sports has received UGX 290.28 billion, which includes dedicated funds for the Uganda Secondary School Expansion Project (USEEP) and the rehabilitation of crucial health training institutions.
Complementing these strategic allocations, the government has earmarked UGX 529 billion for the Parish Development Model (PDM), a key initiative aimed at fostering wealth creation at the grassroots level. Additional funds have also been allocated to the Uganda Development Corporation and the Uganda Development Bank to further stimulate economic growth and investment.
Uganda Clays Ltd, a partly government-owned enterprise listed on the Uganda Securities Exchange, has reported a deepening net loss of about UGX5 billion for the year ending December 31, 2024 nearly doubling its previous year’s shortfall of UGX2.85 billion.
The company, in which the National Social Security Fund (NSSF) holds a significant stake, attributed its declining fortunes to soaring production costs and swelling finance expenses.
This comes even as the manufacturer posted a 4% increase in revenue to UGX 31.6 billion, largely driven by improved market demand and upgraded equipment, which many had hoped would signal a turnaround.
“While sales volumes improved, the benefits were eroded by rising input costs and significant interest charges,” the company said in its financial report.
Uganda Clays saw its gross profit tumble by 5% to UGX 8.3 billion, largely due to escalating production costs. On the financing front, the company’s expenses shot up by UGX 1.4 billion, mainly as a result of accrued interest on a loan from NSSF.
This worrying trend has raised concerns about the ripple effects on the broader construction industry and Uganda’s tax base. Uganda Clays is a key supplier of construction materials such as roofing tiles, bricks, and decorative clay products essentials for the booming real estate and infrastructure sectors.
A weakened Uganda Clays potentially tightens supply, which could increase costs for contractors and slow down construction timelines, especially for affordable housing projects.
Additionally, the company’s sustained losses directly undermine tax contributions to government coffers. Corporate taxes are paid on profits, and Uganda Clays’ continuous negative earnings mean less corporate income tax flowing to the Uganda Revenue Authority (URA).
Indirectly, reduced profitability also squeezes supplier networks, employee incomes, and lowers consumption taxes, further denting revenue collection efforts.
According to experts, when manufacturers underperform, it not only affects employment and industrial growth, but it also erodes domestic revenue mobilisation targets.
Despite these challenges, the company managed a slight improvement in its cash reserves, rising to UGX 333 million from UGX 250 million in 2023, thanks to tighter collection efforts from customers.
However, with such financial headwinds, no dividend has been proposed for the 2024 financial year, a decision that will be finalised at the company’s Annual General Meeting slated for June 27.
Looking ahead, Uganda Clays remains cautiously optimistic. The firm is pursuing an ambitious expansion strategy, including the construction of a new manufacturing plant expected to be operational in 2025. Management believes this investment will modernise production, improve efficiency, and enhance product quality crucial steps toward recovery.
“We are focused on capacity expansion and installation of new machinery to sharpen our competitive edge,” the company’s report noted.
For now, however, the company’s struggles serve as a stark reminder of the fragile balance between industrial ambition and financial health a balance crucial for business sustainability and national revenue collection alike.
Uganda Breweries Limited, the maker of Bell beer, has reaffirmed its commitment to corporate social responsibility by donating UGX 100 million towards the 100th Rotary District 9213 Conference.
The event, set to take place this week at the Civil Service College in Jinja, will bring together Rotarians, Rotaractors, business leaders, and policymakers among others, to discuss impactful human development, community initiatives and strategies for sustainable development.
Speaking at the handover of the cash in Kampala, UBL’s Managing Director, Andrew Kilonzo, emphasized the company’s dedication to supporting initiatives that drive positive social change.
"We are thrilled to partner with Rotary in this momentous centennial conference, a celebration of the remarkable achievements of the 2023/24 Rotary year,” he said.
“We are particularly excited about the planned CSR activities that will generate tangible, positive impacts within our communities," he said.
Mr. Kilonzo further noted that UBL’s contribution aligns with its sustainability agenda, which focuses on clean water access, environmental conservation, and public health improvement.
Anne Nkutu, the District Governor of Rotary District 9213, expressed gratitude for UBL's continued support. She highlighted that the conference serves as a platform for Rotarians to celebrate achievements, evaluate progress, and reinforce accountability within the Rotary year. Rotary District 9213 includes three countries: Kenya, Tanzania and Uganda.
"This conference, facilitated by the meeting of great minds, will undoubtedly amplify the exceptional work that Rotary undertakes in communities across Uganda and the world," she said.
The partnership between UBL and Rotary is built on shared values of service, volunteerism, and community development. Over the years, UBL has collaborated with Rotary on various initiatives, including the Annual Rotary Cancer Run and Rotary International Motto Campaigns, which focus on providing access to clean water, improving healthcare, and tackling diseases, all of which align with UBL’s corporate responsibility priorities.
The impact of Rotary’s work extends beyond philanthropy; it has significant economic benefits. Through its health, education, and environmental programs, Rotary contributes to increased productivity, job creation, and a healthier workforce, ultimately strengthening Uganda’s economy.
For instance, Rotary's water and sanitation projects reduce waterborne diseases, leading to fewer health-related absences from work and school, thereby boosting productivity and economic participation.
Similarly, the organization's education programs equip young people with skills that enhance employability and entrepreneurial success.
UBL’s investment in Rotary’s initiatives aligns with its broader sustainability strategy, reinforcing the importance of public-private partnerships in fostering national growth. The company recognizes that economic development thrives in a stable, healthy society.
By improving healthcare, promoting education, and supporting environmental conservation, Rotary’s initiatives contribute to a resilient and productive population that can actively participate in economic activities.
By sponsoring the Rotary District 9213 Conference, UBL is not only strengthening its corporate social responsibility footprint but also demonstrating how businesses can play a vital role in shaping a more inclusive and prosperous society.
The conference is expected to drive meaningful discussions and inspire further collaboration for sustainable community development, ultimately contributing to Uganda’s long-term economic growth.
In a resounding declaration aimed at securing regional financial stability, the Government of Uganda has pledged support for initiatives battling money laundering and terrorism financing, emphasizing that the stakes are far higher than mere financial compliance.
Speaking at the 49th Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Task Force of Senior Officials meeting at Speke Resort Munyonyo, the Prime Minister Robina Nabbanja, who represented President Yoweri Museveni, underscored the critical need for enhanced information sharing, capacity building, and policy harmonization.
"Money laundering and the financing of terrorism and proliferation of weapons of mass destruction are not mere financial crimes; they pose direct threats to our national security, economic stability, and development," Nabbanja stated.
A significant milestone for Uganda was its removal from the Financial Action Task Force (FATF) grey list in February last year. Uganda had been placed on the list due to deficiencies in its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework.
Over the past two years, the government implemented critical reforms, including the strengthening of the Financial Intelligence Authority (FIA) and the enactment of stringent financial compliance measures.
However, despite these efforts, the European Union still maintains Uganda on its grey list, citing the need for further enhancements in financial oversight and enforcement.
Delegates heard that money laundering and terrorism financing present significant threats to the economy. According to FIA Uganda, the country loses an estimated UGX 2 trillion ($530 million) annually to illicit financial flows. These funds are often linked to tax evasion, corruption, and organized crime, undermining economic growth and public service delivery.
The global impact of money laundering is even more staggering, with the United Nations estimating that between 2% and 5% of global GDP amounting to $800 billion to $2 trillion is laundered annually.
State Minister for General Duties Henry Musasizi elaborated on Uganda's proactive stance, highlighting the adoption of a risk-based approach to supervision. This involves targeted audits of high-risk sectors such as real estate, digital financial services, and cross-border transactions.
Ramathan Ggoobi, the Permanent Secretary of the Ministry of Finance and Secretary to the Treasury, emphasized the challenges posed by the misuse of emerging technologies, particularly cryptocurrency, and the cross-border nature of illicit financial flows.
"Financial criminals are increasingly using sophisticated digital platforms to launder money. We must enhance our cyber intelligence capabilities and international cooperation to curb this trend," Ggoobi noted.
The ESAAMLG meeting focused on reviewing Uganda's implementation of FATF recommendations and compliance with global financial regulations, tackling key regional obstacles in the fight against financial crimes, including weak enforcement mechanisms and gaps in financial intelligence, and strengthening collaboration between Financial Intelligence Units (FIUs), law enforcement agencies, and the banking sector.
Over the past year, FIA has increased its surveillance of financial institutions, conducted more than 150 risk assessments, and flagged over UGX 1 trillion ($265 million) in suspicious transactions.
These efforts have led to multiple investigations and arrests, demonstrating Uganda’s commitment to tackling financial crime head-on.
However, significant challenges in eliminating illicit financial activities persist. According to the Office of the Director of Public Prosecutions (ODPP), Uganda has secured only 30 convictions related to money laundering cases in the past five years, highlighting the need for a more robust legal framework and judicial processes.
The Uganda Securities Exchange (USE) has announced the suspension of the Umeme counter on the bourse following the end of the company’s 20-year concession and eventual transfer of electricity distribution to the Government of Uganda.
The company handed over the network to the Uganda Electricity Distribution Company Ltd on March 31, after accepting compensation amounting to more than $118 million (more than UGX430 billion).
Umeme became a listed company on the USE on October 15, 2012 and the shares of the company started trading on the USE on November 30, at a share price of UGX 275 per share. The company is currently trading at UGX415 per share, though at one time it rose to a high of UGX450.
The company’s shares were first cross-listed on the Nairobi Securities Exchange (NSE) in Kenya on December 14, 2012, with active trading commencing on July 31, 2013.
However, in a March 31 press release, the USE stated that the counter of UMEME Limited which is listed on the Main Investment Market has been put on hold “temporarily.”
“The Uganda Securities Exchange (USE) hereby informs all investors and the general public that the counter of UMEME Limited which is listed on the Main Investment Market Segment of the USE has been temporarily suspended,” the release said.
“The involuntary suspension of the counter by the USE is made in the interest of investor protection and maintaining transparency of the market. The suspension is on the basis of the ongoing public speculations regarding the end of the UMEME concession and determination of the final buy out amount.”
It added, “The suspension shall take effect on Monday, March 31, 2025 for a period of two weeks to enable the company address key concerns regarding price sensitive information and to mitigate the potential impact of the end of the concession period.”
Umeme's market capitalization is currently valued at about UGX674 billion, which is equivalent to about 2.37% of the USE equity market. Since December 3, 2012, Umeme's market cap has increased from UGX487 billion, an increase of 38.3%.
Given that Umeme now has no business from which to generate revenue, given that the concession has ended, the company has to pay the shareholders at the current market price and delist from the USE and the NSE.
Richard Byarugaba, the USE board chairman, has expressed concern about the potential delisting, saying it would negatively impact market turnover.
Apparently, the Government was not interested in buying off Umeme’s shares, instead opting to compensate the company for the investment it made in the network. In general, if a listed company is bought off by another entity, shareholders of the target company receive cash for their shares. The company's stock is then typically delisted from the stock exchange, and it ceases to trade.
With its 378,933,288 shares, the National Social Security Fund (NSSF) was Umeme’s leading shareholder and could receive cash amounting to more than UGX150 billion for its shares in Umeme.
NSSF initially invested UGX138.7 billion in Umeme and over the years, earned more than UGX70 billion in dividend payments. The Fund initially purchased 251,951,071 Umeme shares in 2013. Later in November 2016, the Fund entered into an agreement to buy an additional 121,820,850 shares from Actis Infrastructure.
The purchase increased the Fund’s total stake in Umeme Limited from 15.5% (251,951,071 shares) to 23% (373,771,921 shares), making NSSF the largest institutional investor in Umeme.
EACOP Ltd., the company in charge of the construction and future operation of the East African Crude Oil Pipeline project from Kabaale in Uganda to Tanga in Tanzania, has announced that it has closed the first tranche of external financing for the project, provided by a syndicate of financial institutions including regional banks such as African Export Import Bank (Afreximbank), the Standard Bank of South Africa Limited, Stanbic Bank Uganda Limited, KCB Bank Uganda and The Islamic Corporation for the Development of the Private Sector (ICD).
The joint venture company said in a March 26 press release that the development demonstrates the support of financial institutions on this transformative regional infrastructure.
“The successful closing of this first tranche of external financing represents a significant milestone for EACOP and its shareholders TotalEnergies (62%), Uganda National Oil Company Limited (UNOC – 15%), Tanzania Petroleum Development Corporation (TPDC – 15%) and CNOOC (8%),” the statement said.
The New Vision reported today that the cash, amounting to $2.5 billion (about UGX9.3 trillion), would be released in three portions - two of $1 billion each, and the final one of $500m.
Quoting Ministry of Energy Permanent Secretary Irene Batebe, the paper said that the with the first batch of funding secured, the country was set to achieve ‘first oil’ on schedule in 2026.
The project, which traverses more than 2,500 km across Uganda and Tanzania, is progressing well, according to the press release, with a continued focus on safety, environmental sustainability, and local community engagement.
Towards the end of last year, the China Petroleum Pipeline Engineering Co. Ltd, the construction contractor for the East African Crude Oil Pipeline (EACOP) Ltd, received a delivery of nine trucks of insulated pipe pieces, which are currently stored at the Main Camp and Pipe Yard (MCPY) 4, in Kyotera District.
“The overall project progress exceeded 50% end 2024. More than 8,000 Ugandan and Tanzanian citizens are employed on the project, about 400,000 manhours of training have been provided so far and 500 M$ spent locally on goods and services,” it said.
The pipeline is a crude oil export infrastructure that will transport Uganda’s crude oil from Kabaale – Hoima in Uganda to the Chongoleani peninsula near Tanga in Tanzania for export to the international market. Upon completion, it will have the capacity to transport 246,000 barrels of crude oil per day.
The project also includes six pumping stations, two pressure reduction stations and a marine export terminal in Tanzania (with a 3 MWp solar plant), all along connected to national primarily hydro- based grids for power supply.
The construction of the EACOP Pipeline in combination with the Tilenga and Kingfisher projects will benefit the economies of Uganda and Tanzania include tax revenues for the two Host Governments, job creation, national content, new infrastructure, logistics, skills and technology transfer and enhancement of the trade corridor between Uganda and Tanzania.
The pipeline project for export is to be developed in tandem with the oil refinery, which will process crude oil into finished products for local and regional consumption.
The government of Uganda has signed a Memorandum of Understanding (MOU) with Alpha MBM Investments LLC from the UAE for the development of the refinery. Negotiations for key commercial agreements, including implementation, crude oil supply, and shareholders agreements, are ongoing.
The refinery project, worth about $4 billion, is expected to be a ‘game-changer’ for Uganda's energy security, processing 60,000 barrels of oil daily. It will also drive a key part of Uganda's Energy Transition Plan by producing Liquefied Petroleum Gas (LPG) to fuel the country's 'clean cooking' initiative.
Stanbic Uganda Holdings Limited (SUHL), the parent company of Stanbic Bank Uganda, has reported a strong financial performance for 2024, recording a profit after tax (PAT) of UGX 478 billion.
Speaking at a briefing in Kampala, Francis Karuhanga, the SUHL Chief Executive Officer, attributed the impressive performance to strategic resilience and adaptability.
“We are pleased with the results achieved in 2024, especially considering the challenging global environment. Key drivers of the local economy were stable, supported by prudent fiscal and monetary policies. Despite an evolving competitive landscape, including the rise of fintechs, we stayed focused on our strategic goals, executing with discipline and adaptability,” Karuhanga stated.
Stanbic Uganda’s total revenue topped UGX1.3 trillion, reflecting an 11.8% Compound Annual Growth Rate (CAGR). Customer deposits grew by 12.2% to UGX7.1 trillion, while loans and advances increased by 3.5%, maintaining a solid 19.5% market share, totalling UGX 4.4 trillion. Non-interest revenue grew by 10.8%, driven by higher transaction volumes.
The bank’s contribution to Uganda’s economy is evident in its tax payments, which rose to UGX427.8 billion in 2024 from UGX 355 billion in 2023. This makes Stanbic the leading taxpayer in the financial sector. The Uganda Revenue Authority (URA) collected over UGX10 trillion in 2024, up from UGX 8 trillion in 2023, with a significant portion coming from the banking sector.
The Board has recommended a total dividend pay-out of UGX300 billion for 2024, demonstrating its commitment to shareholders. With UGX140 billion already paid as interim dividends, the remaining UGX160 billion, which awaits AGM approval, represents a 7.1% annual growth in dividends.
SUHL comprises five companies, which include; Stanbic Bank Uganda Limited, Stanbic Business Incubator, SBG Securities Ltd, an investment house and stock brokerage firm; Stanbic Properties Ltd, and Flyhub Uganda Ltd, as a digital innovation and solutions enterprise.
The Group of companies is owned by the South Africa based Standard Bank Group, Africa’s largest bank by assets, which operates in 20 African countries.
Looking ahead, Karuhanga emphasized the bank’s dedication to sustaining its growth trajectory while serving as a catalyst for economic development. “As we look to the future, our focus remains on supporting key sectors that drive Uganda’s economy, enhancing financial inclusion, and ensuring sustainable economic growth.”
Stanbic Uganda’s performance in 2024 underscores the banking sector’s vital role in Uganda’s economic development. By facilitating access to credit, paying significant taxes, and investing in key sectors, the bank continues to contribute to the nation’s progress. With a strong strategy and commitment to innovation, Stanbic is well-positioned to drive further economic growth in the coming years.
For example, the Stanbic Business Incubator is playing a significant role in supporting SMEs. In 2024, it facilitated UGX76 billion in credit, up from UGX 51 billion in 2023. More than 3,000 enterprises benefited, creating an average of seven new jobs per business.
Stanbic Uganda’s Economic Enterprise Restart Fund (EERF) has been a key driver of financial inclusion, providing UGX 454 billion in agricultural financing. Of this, UGX 170 billion was channelled to farmers’ SACCOs at low interest rates, benefiting over 2.6 million members. The initiative has helped farmers access affordable loans, boosting productivity and food security.
Similarly, the Stanbic4Her program, aimed at empowering women entrepreneurs, disbursed UGX94 billion in 2024, bringing the total to UGX 173 billion since its inception in 2022. Over 6,700 women entrepreneurs accessed credit, marking a 54.5% increase from the previous year.
Additionally, 3,400 women received business management and financial literacy training, fostering sustainable business growth.
These developments reflect the Group’s crucial role in driving Uganda’s economic growth through financial inclusion, tax contributions, and support for key sectors such as agriculture and small enterprises.
MTN Uganda, through its Corporate Social Responsibility arm, MTN Foundation, has inaugurated new facilities including a classroom block at Ocokican Community Secondary School in Ocokican Sub-County, Soroti District, in Eastern Uganda.
This significant development also includes, a laboratory, 60 desks, 10 laboratory tables, 60 stools, a water harvesting system, two sanitary facilities, and a borehole. The total investment for this project was Shs327 million, further demonstrating MTN Uganda's commitment to supporting education and community development across the country.
Speaking at the commissioning ceremony on March 20, MTN Uganda CEO Sylvia Mulinge emphasized the vital role that education plays in transforming communities.
"Education is the most powerful weapon which you can use to change the world," she quoted Nelson Mandela, the first democratically elected President of South Africa, underscoring the pivotal role education plays in shaping the future.
"This new school block is more than just a building; it represents a foundation of hope and the beginning of a brighter future for the students and the entire community."
Mulinge stated that MTN Uganda believes everyone should not only enjoy the benefits of a modern, connected life but also have access to quality education.
"These new classrooms symbolize the aspirations of the students, families, and the entire community," she noted. "We believe that when young minds are given the right tools and environment, they will rise to the occasion and shape the future."
The Ocokican Community Secondary School was established in 2022 to address the urgent need for secondary education facilities in the area. Previously, students had to travel 10 to 15 kilometers to access secondary schools, a distance that made education inaccessible for many.
With the addition of new classrooms and a fully equipped laboratory, the school now offers a more comprehensive educational experience, enabling students to benefit from practical, hands-on learning. The installation of a water harvesting system and borehole not only ensures reliable access to clean water but also enhances health and sanitation for both students and the broader community.
Florence Abago, the head teacher of Ocokican Community Secondary School, expressed deep appreciation for MTN Uganda’s support.
"Today marks a new chapter for our school and our students,” she said. "This new school block will provide a nurturing environment where our learners can thrive, and we are immensely grateful to MTN Uganda for their generous contribution. The investment in education is an investment in our community’s future, and we are excited to see the positive impact this will have on our students and their dreams."
Anna Ebaju Adeke, the Woman Member of Parliament for Soroti District, commended the foundation for its commitment to transforming lives through education and ensuring that every child has a chance to succeed.
Over the years, MTN Uganda has made substantial investments in the educational infrastructure of several schools, including Salama School for the Blind in Mukono, Horizon International High School in Isingiro, and Aspire High School in Ibanda District.
The commissioning of this new school block is a key milestone in MTN Uganda’s Ambition 2025 strategy, which is focused on enhancing the quality of education, promoting digital inclusion, and improving living standards. The investment also aligns with Sustainable Development Goal (SDG) 4, which calls for inclusive and equitable education and lifelong learning opportunities for all.
Uganda Airlines has announced the launch of its new direct route to London Gatwick in the United Kingdom, in an ambitious move that is set to enhance trade, tourism, and global connectivity.
Scheduled to begin on May 18, 2025, the service will operate four weekly non-stop flights between Entebbe International Airport and London Gatwick, re-establishing a direct air link between Uganda and the United Kingdom after nearly a decade. Officials said the direct connection between Uganda and the UK is expected to be a ‘game-changer,’ offering a more efficient travel option for both passengers and cargo.
“These direct flights will provide unparalleled convenience for travellers, catering to the growing demand for seamless travel between our two nations,” said Uganda Airlines CEO Jenifer Bamuturaki. “Uganda and the UK share deep historical, cultural, and economic ties, and this route will significantly bolster our connectivity.”
The UK remains one of Uganda’s largest trading partners in Europe, with annual trade volumes exceeding £200 million (UGX 940 billion). The direct route is expected to facilitate smoother exports of Ugandan coffee, fresh produce, and flowers to the UK, while also promoting foreign direct investment and business collaborations.
With the new gateway to Europe and the USA, Entebbe is now se to be serve as a key transit point for travellers from across Africa heading to Europe and beyond.
The airline’s extensive regional network includes Nairobi, Dar es Salaam, Juba, Lusaka, Harare, Lagos, and Johannesburg, offering seamless connections for business and leisure travellers.
“This route does not only benefit Uganda but also the wider East African region,” said aviation analyst Joseph Mukasa. “It makes Uganda Airlines a serious competitor in regional air travel by providing more affordable and direct flights to Europe.”
The airline has also announced plans to launch flights to Accra, Ghana, further cementing its role as a key player in intra-African and intercontinental travel.
Nicknamed the “Pearl of Africa,” Uganda is a renowned tourist destination famous for its mountain gorillas, national parks, and rich culture. The UK remains a top source of tourists to Uganda, and this direct connection is expected to increase visitor numbers significantly.
“Accessibility is a key factor in boosting tourism. Direct flights remove the hassle of layovers and long transit times,” said Lilly Ajarova, CEO of the Uganda Tourism Board. “This route will undoubtedly contribute to higher tourism revenues and increased arrivals.”
The airline will operate the Airbus A330-800neo on the London route, offering a superior passenger experience with spacious cabins, fuel efficiency, and cutting-edge technology.
Whereas some analysts are worried about the feasibility of the London route, Uganda Airlines officials believe that with over 100,000 Ugandans living in the UK, the new flights will provide a vital link for the Ugandan diaspora, facilitating family visits and business trips.
As Uganda Airlines continues its strategic expansion, industry observers believe that adding more European and Middle Eastern destinations will be key to sustaining long-term growth.
“For Uganda Airlines to remain competitive, it must secure additional traffic rights and codeshare agreements with global airlines,” noted aviation expert David Mulumba. “London Gatwick is just the beginning; Paris, Amsterdam, and Dubai should be next.”
Travel and Tour World, a highly respected industry magazine, has saluted Uganda Airlines for the launching the new route, saying it’s a significant milestone in its journey, which would benefit both travellers and the Ugandan economy.
“With the launch of direct flights between Entebbe and London, the airline is providing new opportunities for business, tourism, and trade. The future looks promising as Uganda Airlines continues to expand its global network and offer more convenient travel options for passengers,” the publication said.
Uganda is facing a critical moment in its electricity sector, with uncertainty looming over the government’s readiness to take over electricity distribution from Umeme.
The transition, which has been marred by funding gaps, contractual restrictions, and staffing concerns, is now in sharper focus as key players wrangle to ensure a smooth handover.
The Electricity Regulatory Authority (ERA) has sounded the alarm over the government’s preparedness, with Ziria Tibalwa, the CEO of ERA, telling Parliament’s Committee on National Economy that Uganda was “not yet ready.”
“On our side, we aren’t even ready with the UGX 190 billion for UEDCL to start,” she said, pointing to a critical financing shortfall for the Uganda Electricity Distribution Company Limited (UEDCL). This delay in funding raises concerns about potential disruptions in power supply and service quality.
Tibalwa also highlighted restrictive clauses in the Umeme concession agreement, which prevent government intervention until the contract expires. This, she suggested, has left the nation vulnerable to increased power outages. “I don’t know whether it is a coincidence, but in the last one month, we have had serious outages,” she said, questioning whether Umeme’s service quality has declined as the contract nears its end.
However, in a statement released on March 19, the Ministry of Finance, Planning, and Economic Development confirmed that the government is in advanced stages of securing UGX 190 billion through internal borrowing.
“By the end of next week, these funds will be available to ensure that UEDCL is financially equipped to improve the quality of service,” the ministry said.
Additionally, the government is finalizing the approval of the buyout amount to compensate Umeme for its unrecovered capital investments, in a bid to ensure a seamless transition in electricity distribution.
While securing UGX 190 billion for UEDCL is a step forward, the larger issue of the Umeme buyout remains contentious. The government plans to borrow UGX 722 billion from Stanbic Bank Uganda to pay off Umeme. However, the Auditor General has called for an immediate halt to the loan’s approval, citing discrepancies in the figures.
Preliminary findings by the Auditor General suggest that the buyout should cost only UGX482 billion, significantly lower than the government’s proposed UGX722 billion loan amount. This discrepancy has raised concerns over potential overvaluation and misallocation of public funds.
Beyond financial concerns, the transition from Umeme to UEDCL is expected to lead to job losses, which Energy Minister Ruth Nankabirwa acknowledged, saying the restructuring aims to eliminate duplication between Umeme and UEDCL employees.
“Where we find out your job is already taken and we already have it with UEDCL, your contract has ended with Umeme,” she stated. “If we interview both of them, the Umeme one and the UEDCL one, one of them is bound to lose. So, this is inevitable.”
While officials stress that the recruitment process is fair and merit-based, uncertainty remains for hundreds of workers whose futures hang in the balance.
As the April transition date approaches, the government has instructed Umeme to continue fulfilling its contractual obligations until the end of March 2025. UEDCL is expected to take immediate corrective measures starting April 1, 2025, to address power reliability challenges and enhance service delivery.
Despite these assurances, industry experts warn that any gaps in readiness could lead to prolonged service disruptions.
As the country moves closer to the takeover deadline, all eyes will be on the government’s ability to finalize funding, resolve financial discrepancies, and manage the workforce transition effectively.
The Uganda Manufacturers Association (UMA) has expressed concern about the growing trend of foreign traders purchasing raw materials directly from Ugandan farmers.
In an engagement with Uganda Revenue Authority (URA) officials, UMA called on the government to regulate this practice, particularly by traders from neighboring countries like Kenya and South Sudan, who are increasingly buying grains cheaply from farmers in Northern Uganda, a region that produces some of the country’s highest yields of maize, millet, and sorghum.
Northern Uganda, known for its significant contribution to the country’s grain production, has seen a rise in foreign traders buying agricultural produce directly from farmers. This practice, UMA argues, undermines the domestic manufacturing industry and leaves local farmers at a disadvantage.
Maize, one of the region’s most widely grown crops, is often sold directly on the farms to traders from Kenya, who then export the grain for processing into fine flour in Kenya. This flour is subsequently imported back to Uganda, where it competes with locally-produced flour.
Manufacturers have expressed concerns that this trend deprives Ugandan businesses of the opportunity to process raw materials locally. Emmanuel Odongo, General Manager of Jubico Industries Limited, criticized the practice as “unfair” for Ugandan producers.
“It is unjust for a Ugandan, who must obtain an export permit to buy raw materials, to be forced to pay the same price as foreigners who bypass the necessary regulations,” he said. Odongo emphasized that this direct purchase of raw materials by foreign traders not only exploits local farmers but also erodes the potential profits that Ugandan manufacturers could earn from processing the goods domestically.
The situation has prompted a broader debate on trade regulations within the East African Community (EAC), particularly regarding the movement of goods between member states. A maize miller, who wished to remain anonymous, pointed out a stark contrast in how neighboring countries regulate their agricultural sectors.
“In Kenya, you cannot just walk up to a farmer and buy their produce without restrictions. The government controls such transactions, whereas here in Uganda, foreign traders can operate freely without any oversight,” the miller explained. She added that Kenyan authorities have previously blocked Ugandan traders from selling processed milk in Kenya, illustrating the stricter controls in place across the border.
“In Kenya, you cannot just walk up to a farmer and buy their produce without restrictions. The government controls such transactions, whereas here in Uganda, foreign traders can operate freely without any oversight,” the miller explained. She added that Kenyan authorities have previously blocked Ugandan traders from selling processed milk in Kenya, illustrating the stricter controls in place across the border.
Uganda's imports from Kenya totaled about UGX 5.5 trillion (around $1.5 billion) in 2023, making Kenya Uganda’s largest source of imports. These imports include petroleum products, machinery, chemicals, and processed food products like wheat flour, which competes directly with Uganda’s own food processing industry. The UGX 5.5 trillion figure is substantially higher than the UGX 4.9 trillion worth of exports Uganda sends to Kenya, showcasing a trade deficit with its largest trading partner.
Uganda's imports from South Sudan were valued at approximately UGX 370 billion (about $100 million) in 2023, consisting mostly of petroleum products and construction materials. Although South Sudan is a smaller trade partner, the disparity in trade values contributes to the overall imbalance Uganda faces in its regional trade relations.
This imbalance underscores the difficulty Uganda faces in competing with foreign traders who are able to buy raw materials cheaply and process them outside the country. As Uganda continues to export large quantities of raw materials like maize to its neighbors, it also struggles to retain value-added products and manufacturing within its borders.
Yasin Luwaga, the URA Regional Supervisor for Customs Services East Nile, responded to the concerns raised by UMA and manufacturers, clarifying the role of URA in regulating such transactions. He noted that foreign traders may be circumventing the usual channels for cross-border trade.
“As URA, we might not have much to do about that because they may not be going through gazetted places, which are monitored by our customs services,” Luwaga said. “For anyone exporting maize, there is a requirement to have an export permit, which we enforce at customs. Without it, the product cannot cross.”
Luwaga was quick to point out that the movement of goods within the East African Community (EAC) should not be restricted, as the region benefits from the EAC’s common market. However, he emphasized that compliance with tax and trade regulations is crucial for smooth trade operations. “We encourage traders and manufacturers to always comply with regulations and pay taxes. Non-compliance could lead to penalties,” he added.
For manufacturers like Jubico Industries Limited, the need for a more structured and regulated approach to raw material procurement is critical for the country’s long-term industrial development.
MTN Uganda, through its corporate social responsibility arm, MTN Foundation, has donated vocational training equipment to Teens and Tots Neuro Development Centre in Kira Municipality, Kampala.
The initiative aims to support parents of children with autism and young adults with disabilities by equipping them with skills to build sustainable livelihoods.
The donation, valued at UGX20 million, includes industrial sewing machines, baking equipment, digital devices, and soap-making supplies. The move is part of MTN Foundation’s Changemakers Initiative, which provides funding and resources to grassroots organizations working in areas such as economic empowerment, education, and healthcare.
Speaking at the handover ceremony, MTN Uganda CEO Sylvia Mulinge said the initiative reflects the company’s broader commitment to fostering inclusion and economic independence.
“For real progress to happen, we must ensure that everyone has access to opportunities that can improve their lives. This initiative is about empowering families with practical skills that help them generate income and build a sustainable future,” she said.
Mulinge re-echoed that through the MTN Changemakers Initiative, MTN Uganda is supporting 25 projects this year with a UGX 500 million investment—the same scale of support as last year—empowering dreamers to turn their visions into meaningful community transformations.
The Teens and Tots Neuro Development Centre, established in 2012, provides specialized education, therapy, and vocational training for children with special needs.
The new equipment will expand the Centre’s capacity to offer training in tailoring, baking, digital literacy, and artisanal crafts, helping over 500 caregivers and young adults develop skills for employment and entrepreneurship.
Sarah Kisitu, the Centre’s Executive Director, welcomed the support.
“This contribution gives families a chance to become more self-reliant. Many of them struggle to make ends meet, and these skills will offer new pathways to economic stability,” she said.
The MTN Foundation Changemakers Initiative, launched two years ago, has already supported multiple projects, including pediatric cancer care at the Bless A Child Foundation, education programs under 40 Days Over 40 Smiles Foundation, and vocational training through Hands of Hope Skilling Centre.
More initiatives are planned, including support for Kalangala Home for Children with Special Needs, the Bushenyi Carpentry Project, and water access projects in Lira and Soroti.
Last year, MTN Uganda, through MTN Foundation, invested UGX 500 million in 25 community projects nationwide, aligning with its Ambition 2025 strategy to promote digital and financial inclusion while driving long-term social impact.
The MTN Foundation strives to improve the quality of life in communities where MTN Uganda operates in a sustainable way. Its purpose is to bring about meaningful, measurable, and sustainable change that helps disadvantaged and rural communities to become self-sufficient.
With a focus on innovative technology, we aim to uplift communities towards independence in this bold new digital world. The Foundation invests resources for social redress, thus economic empowerment, education, health, and humanitarian response. The Foundation implements projects that are highly enabled by ICT solutions.
When Janat Nalwoga completed her Senior Four exams in 2022, she faced an uncertain future. With her father unable to work due to deteriorating eyesight, continuing her education seemed like an impossible dream.
But then, an opportunity arose—one that changed her life, for good. She enrolled at Smart Girls Foundation Uganda and pursued a certificate in Electrical Engineering.
Today, Janat is not just a graduate; she is a technician at Ebee Mobility Uganda, assembling and repairing electric motorcycles. Her story speaks of resilience, transformation, and the power of opportunity.
Janat is not alone. Early this week, MTN Uganda’s Corporate Social Responsibility arm, MTN Foundation, in partnership with Smart Girls Foundation, proudly celebrated the graduation of 250 young women from the MTN Girls in Tech program and 33 youth in the MTN Girls with Tools initiative, equipping them with valuable skills in Computer Applications User Occupation, mechanics, and electrical engineering.
These graduates join a growing community of over 850 youth who have been trained in digital and technical skills, positioning them to thrive in Uganda’s evolving economy.
Speaking at the graduation ceremony, MTN Uganda Chief Executive Officer, Sylvia Mulinge, reaffirmed the company’s commitment to empowering the next generation through its Ambition 2025 Strategy, which focuses on accelerating digital inclusion and skills development.
“Our investment in youth skills training is not just about numbers; it’s about transforming lives,” Mulineg said.
“We are witnessing young women and men breaking barriers, challenging stereotypes, and stepping into careers that were once considered out of reach. This is the future we are building together.”
Mulinge reaffirmed the company's commitment to empowering young women through skills training, bridging the gender gap in technology and vocational careers as a concrete step toward accelerating gender equality.
Through initiatives like MTN Girls in Tech and MTN Girls with Tools, MTN Uganda is bridging this gap, ensuring that young people are not only consumers of technology but also its creators, innovators, and leaders.
The impact of these programs is already evident. For example, Halimah Nairah Nanyange, a graduate of electrical installation, leveraged her training at Smart Girls Foundation to establish Nairah Solar Energies, a company specializing in solar installation, maintenance, and the sale of solar appliances - creating employment opportunities for herself and others.
“This training gave me the confidence to follow my dreams and pursue a career that once seemed unattainable. I now have the skills to not only support my family but also to build a business that is contributing to the community. The possibilities are endless, and it all started with the opportunity that MTN Uganda provided,” Nanyange says.
MTN Uganda’s collaboration with Smart Girls Foundation dates back to June 2019, during the 21 Days of Y’ello Care initiative. What started as support for just 30 girls in mechanical training has now expanded into a state-of-the-art vocational training facility, capable of training 400 girls annually.
The facility offers courses in mechanics, electrical installation, welding, carpentry, tailoring, computer applications, and house painting, targeting school dropouts, teenage mothers, orphans, and vulnerable youth.
“Education and skills training are the foundation for a self-sustaining future,” says Jamila Mayanja, the founder.
“With support from MTN Uganda, we have been able to scale up our programs, provide a safe and supportive environment, and equip young women with skills that open doors to employment and entrepreneurship.”
Uganda has secured €85 million (about UGX 340 billion) from the Government of France to enhance water infrastructure and urban development in the Greater Kampala Metropolitan Area (GKMA).
Finance Minister Matia Kasaija signed the agreements on behalf of Uganda while AFD Regional Director Jean-François Arnal signed for France. Kasaija said the gesture highlights the Uganda-France collaboration in infrastructure development.
He acknowledged the pressure on Kampala’s water supply due to rapid urbanization and industrial growth. “Water services have been under immense strain. This funding will help us bridge gaps and improve service delivery,” he said.
Of the total funding, UGX 180 billion is to support the Kampala Water Lake Victoria Water and Sanitation Project, expanding the supply network. This builds on prior investments, including upgrading the Ggaba treatment complex and constructing the Katosi plant.
“This financing allows us to develop key areas and provide clean water to more residents in GKMA,” Kasaija added, reaffirming Uganda’s goal of universal piped water access by 2040.
The remaining UGX 160 billion is to support the Greater Kampala Metropolitan Area Urban Development Program, strengthening the Ministry of Kampala Capital City and Metropolitan Affairs and Kampala Capital City Authority (KCCA) in urban infrastructure projects.
“This investment aligns with Uganda’s vision of growing GDP from $53 billion to $500 billion by 2040, with GKMA playing a key role,” said Kasaija. He assured development partners of strict accountability and regular progress reporting.
French Ambassador to Uganda, Xavier Sticker, reaffirmed France’s commitment: “This project reflects the strong friendship between our nations. France is dedicated to supporting Uganda’s water supply initiatives.”
AFD Regional Director Jean-François Arnal emphasized alignment with Uganda’s Vision 2040 and National Development Plan IV. “We are proud to sign these first AFD loans since 2021. With over €400 million in ongoing projects and €300 million in the pipeline, our partnership remains strong,” he said.
Minister of State for Environment Beatrice Anywar Atim said whereas Uganda has abundant water resources, but the challenge remains getting it to those in need. “This funding will expand and restructure distribution,” she noted.
Atim urged environmental protection, warning against wetland encroachment. “Water is wealth. We must protect our environment to sustain water sources,” she said.
The project, financed by AFD, will increase water production to 240 million liters per day from 160 million liters. Funds will be on-granted to the National Water and Sewerage Corporation (NWSC).
NWSC Managing Director Eng. Dr. Silver Mugisha was positive about the anticipated impact: “Once Katosi, Sonde, and Naguru are complete, we can meet Kampala’s growing demand.” He revealed additional funding requests: €80 million for Kampala, €34 million for Masaka, and €44 million for Bara, pending presidential approval.
The project includes 71 km of new pipelines, three reservoirs, three booster stations, and water service extensions to 20 informal settlements. Additionally, 2,600 prepaid meters will be installed in underserved areas to improve accessibility.
The Ministry of Energy and Mineral Development (MEMD) is grappling with a UGX1.95 trillion budget shortfall for the Financial Year 2025/26, raising concerns over the completion of key energy projects and contractual obligations.
The financial gap, which surpasses previous shortfalls, has sparked questions about whether the ministry over budgeted compared to the previous year and how it plans to navigate the crisis.
Energy Minister Ruth Nankabirwa has warned that the funding deficit threatens Uganda’s ability to expand electricity access, complete crucial oil and gas projects, and support the mining sector.
“We’re not going to negotiate with finance. You bring your money and construct a transmission line using your money, and then we, the Uganda Electricity Transmission Company, will pay you through that. So we are trying to be creative to make sure that we survive,” Nankabirwa stated during an orientation retreat for new members of the Parliamentary Committee on Environment and Natural Resources at Speke Resort Munyonyo.
In the budget framework paper for the 2025/26 financial year, the Ministry had proposed a amounting to UGX2.9 trillion, a significant increase compared to previous allocations.
This rise is attributed to the escalating costs of energy infrastructure, including the Karuma Hydropower Plant (UGX7 trillion) and the expansion of Uganda’s electricity transmission network (UGX 500 billion).
Given the scale of these projects, the question arises whether the Ministry’s budgeting process overestimated the government’s fiscal capacity.
The Ministry attributes the shortfall to reduced government revenue collection, competing national priorities, and the high cost of infrastructure development.
During a presentation to the Parliamentary Committee on Natural Resources on January 8, 2025, State Minister for Energy and Mineral Development Opolot Okosaai and Permanent Secretary Irene Bateebe outlined the financial breakdown.
The proposed budget includes UGX16.7 billion for wages, UGX88 billion for non-wage recurrent expenses, UGX21.02 billion for Sustainable Energy Development (SED), and UGX37 billion for Sustainable Extractives Industry Development (SEID). However, critical projects such as the national electricity grid upgrade requiring over UGX500 billion face potential setbacks due to insufficient funding.
With only two months remaining in the financial year, the Ministry is looking to the government for urgent intervention.
Officials have proposed alternative financing mechanisms, including increased public-private partnerships (PPPs) and securing additional funding from international donors.
Nankabirwa urged Parliament to prioritize energy sector funding, emphasizing its role in economic growth.
Beyond the immediate financial crisis, the Ministry is also grappling with challenges such as illegal mining, power infrastructure vandalism, and the undercapitalization of the Uganda National Mining Company (UNMC), which requires UGX 200 billion.
Despite the setbacks, Uganda has made strides in the energy sector. The Karuma Hydropower Plant has added 600MW to the national grid, and electricity tariffs have dropped by 5.2%, benefiting consumers and industries. In the oil and gas sector, projects such as Tilenga (UGX 15 trillion) and Kingfisher (UGX 7 trillion) are progressing, positioning Uganda as a regional energy player.
Nankabirwa reaffirmed the government’s commitment to sustaining these achievements but acknowledged that financial constraints remain a major hurdle. She called for continued collaboration with Parliament and private sector partners to secure alternative funding sources and ensure Uganda’s energy ambitions are realized.
The Uganda National Bureau of Standards (UNBS) has secured UGX 5.5 billion (USD 1.5 million) from TradeMark Africa (TMA) to enhance the standardization of agro-industrial products by Micro, Small, and Medium Enterprises (MSMEs).
The funding aims to improve product quality and ensure that Ugandan-made goods meet regional and international market requirements, positioning local businesses for global competitiveness.
Speaking at the signing ceremony at UNBS headquarters in Bweyogerere, TMA Country Director Anna Nambooze emphasized the crucial role MSMEs play in Uganda’s economic development, stressing the need to enhance their capacity to meet regulatory and quality standards.
“Uganda ranks among the top five most entrepreneurial nations, and MSMEs are the bloodline of its business sector. However, many struggle to meet the required quality standards for market access. This support will go a long way in ensuring that more local products are competitive beyond Uganda’s borders,” Nambooze said.
Standardization in agro-industries has far-reaching benefits that extend beyond mere quality control. It plays a crucial role in ensuring food safety, facilitating international trade, and improving overall productivity.
Worldwide, ensuring quality standards plays a crucial role in the agricultural sector, significantly impacting quality control, safety standards, and trade implications. Standardization ensures uniformity in product quality, which is essential for consumer trust and market competitiveness.
Products meeting recognized standards are perceived as more reliable and of higher quality, opening doors to new markets and higher-value segments. Compliance with safety standards, often mandated by governments, protects public health and ensures that food products meet specific safety criteria throughout the production chain.
Standardization in safety practices significantly reduces the risk of foodborne. Standardization enhances the competitiveness of domestic products in the global market, leading to increased exports and better market positioning illnesses.
The 12-month Partner Support Agreement would fund mobile quality assurance testing equipment to serve border communities in Goli, Paidha, and Vurra (Uganda) and Mahagi & Aruu (DRC). This initiative will strengthen Uganda’s trade facilitation efforts, ensuring that locally produced goods adhere to safety and quality requirements before entering international markets.
Additionally, the funding is to support accreditation services to expand the scope of Gulu, Mbale, and Mbarara regional laboratories, enabling them to certify more products for export and domestic consumption. The Busia Border Post Laboratory will also be equipped with advanced product testing facilities to ensure compliance with regulatory standards, minimizing the risk of substandard goods in the market.
To further strengthen the sector, the initiative will support training and certification programs in Global GAP Integrated Farm Assurance, ECOMARK, Personnel Certification, and Food Safety.
This will benefit UNBS auditors, MAAIF farm assurers, and private sector players, improving their expertise in quality assurance and regulatory compliance. UNBS will also conduct awareness campaigns to educate MSMEs on the importance of standardization and certification in accessing both local and international markets.
UNBS Executive Director Eng. James Kasigwa welcomed the funding, highlighting its significance in Uganda’s broader industrialization and economic transformation strategy.
“In the next five years, we aim to grow MSMEs and strengthen their ability to supply both the domestic and export markets. This will drive industrialization, import substitution, and export promotion, in line with the National Development Plan IV and Uganda’s ambition to grow its economy from USD 50 billion to USD 500 billion by 2040. We must be intentional about building Uganda,” Kasigwa stated.
The UNBS officials expressed gratitude to TradeMark Africa and its partners, including the Danish Government (DANIDA) through the Uganda Trade Support Project, the Foreign Commonwealth and Development Office (FCDO) through the Standards Partnership Project, and the European Union’s Uganda-DRC Peaceful and Resilient Borderlands Project.
This collaboration is expected to empower local enterprises, drive industrial growth, and solidify Uganda’s position in the international market.
Countrywide, boda bodas have become an essential part of urban transportation, driving daily commutes and fueling economic activity. However, what was once a typically male-dominated industry is now undergoing a remarkable transformation, with women who once hesitated to join the trade, steering their way toward financial independence, thanks to the rise of motorcycle asset financing.
This financing model, which allows individuals to acquire motorcycles with a small down payment followed by manageable installments, has become a game-changer for women like Margaret Nabulime who presently owns a fleet of three motorcycles. Unlike traditional loans that require a large upfront payment, motorcycle asset financing enables these women to own the asset gradually, alleviating the financial strain that typically accompanies large lumpsum payments.
Nabulime says her journey into the motorcycle business began only last year, when her brother introduced her to Watu Uganda, a company offering asset financing, including motorcycle loans.
At the time, Nabulime was selling second-hand clothes, but her brother convinced her that owning a motorcycle would diversify her income. Little did she know that this decision would stabilise her business and transform her marriage.
"I can't ride a motorcycle but I employ a rider, and it's been working well. Barely a year since I got my first bike on loan, I now own three. It’s helped me to contribute to my home, and my husband respects me more. Men love women who add value, and now, I’m no longer a financial burden," she says.
For Irene Aturinda, owning a motorcycle was born out of necessity. In 2012, she was running a small retail shop in Luzira, on the outskirts of Kampala, but lacked the means to transport her goods.
"My husband is a salary earner, and I needed something to supplement our income," she recalls. Initially, Aturinda used an old motorcycle that her husband had bought for her, but as her business grew, she recognised the potential of expanding her fleet.
"I didn’t have the cash for a new one, but a friend told me about Watu Uganda. I paid UGX 800,000 as a deposit, and the rest is history. Now, I own three bikes and earn more than UGX40,000 daily. It’s been a huge relief for my husband too. We no longer worry about food or emergencies," she explains.
These women are not only improving their own lives but also making a positive impact in their communities. With the income generated from their motorcycle fleet, they’ve supported their families, invested in property, and even built homes. The ripple effect is evident - financial independence fosters stronger family ties and more stable households.
Despite the rewards, challenges remain. Both Nabulime and Aturinda highlight difficulties such as unreliable riders and delayed payments.
However, the positive outcomes far outweigh these challenges. According to Diana Wafula, the Watu Uganda Branch Manager in Lugogo, these women are breaking barriers in what has traditionally been a male-dominated industry.
"Women in Uganda face several challenges, from social pressures to limited access to finance, but we are addressing these challenges with tailored solutions. Through flexible financial arrangements and training, we’ve seen women start businesses and expand into multi-bike fleets," Wafula notes.
Moreover, she points out that women are increasingly taking on roles that were once considered unsuitable, such as managing motorcycle fleets and handling business finances. "We’ve seen more women take on leadership roles in their businesses. It’s not just about the bikes; it’s about building a legacy and gaining respect in the community," she notes.
The success of women in motorcycle asset financing underlines the importance of financial empowerment. When women contribute to household income, they reduce financial stress and improve family well-being. The benefits are far-reaching - they reduce gender-based violence, improve relationships, and foster balanced households.
Nabulime, who says her journey has been all about perseverance, growth, and empowerment, has some valuable advice for fellow women.
"If you want change, don’t wait for it to come. Get out there, work hard, and take the opportunities that come your way. The motorcycle business is not just about transport but a lifeline that can help you grow, thrive, and make a difference," she says.
Uganda's private sector showed signs of recovery in February, after a temporary slowdown at the start of the year, the Stanbic Bank Purchasing Managers’ Index (PMI) has shown.
The report shows that the PMI climbed to 52.6, up from 49.5 in January, indicating an improvement in the business environment.
The Purchasing Managers' Index (PMI) is an important economic indicator that provides valuable insights into the health and direction of an economy, and is widely followed by economists, policymakers, and investors, as an important tool for investors and policy-makers to make informed decisions.
Speaking at the February PMI dissemination event in Kampala recently, Christopher Legilisho, an economist at Stanbic Bank, said the private sector regained momentum as both output and new orders surged after dipping in January
“The Uganda PMI for February shows a private sector back in expansion, with both output and new orders growing robustly. There was strong demand across all sectors. Employment in the private sector accelerated again after three months of decline due to increased new orders, while backlogs fell because of sufficient capacity. Purchasing activity was elevated as firms factored in output having recovered convincingly, but inventories fell for the first time in 12 months,” Legilisho explained.
The February survey attributes the renewed expansion to increased demand and new business orders, prompting firms to raise input purchases and staffing levels.
New orders resumed growth, reversing January's dip and continuing an upward trend seen since April 2024. Employment levels rose, ending a three-month period of job cuts.
However, the manufacturing sector was the only one to record a drop in employment. Stronger demand led to broad-based output growth across all sectors.
The Stanbic PMI is compiled by S&P Global, based on responses from approximately 400 purchasing managers across various sectors including agriculture, mining, manufacturing, construction, wholesale, retail, and services.
The index is calculated using weighted averages of key indicators: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), Stocks of Purchases (10%).
A PMI reading above 50.0 signals economic expansion, while below 50.0 indicates contraction.
Despite the overall improvement, Ugandan firms faced higher cost burdens due to increased purchase prices and wage bills. As a result, businesses raised their output prices for the sixth consecutive month to offset rising expenses.
“There were pricing pressures related to input and purchasing prices as utility bills and selected commodity prices increased. Staff costs and output prices continued to rise, though at a slower pace. The private sector remains highly optimistic about future output, although optimism has slightly dipped since January. The February PMI suggests durable economic conditions in the private sector,” Legilisho noted.
Panellists highlighted that customer acquisition played a crucial role in boosting new orders. Increased employment levels helped reduce backlogs of work, allowing firms to meet demand more efficiently.
However, higher business expenses, particularly in utilities and raw materials, remain a challenge.
With confidence levels still high despite a slight decline in optimism, Uganda’s private sector is positioned for continued growth, provided cost pressures remain manageable and demand remains strong.
In a bold step towards bridging the digital divide, MTN Uganda has provided ICT equipment worth UGX 20 million to the 40 Days Over 40 Smiles Foundation., a youth development focused local NGO.
This donation will boost digital literacy and learning opportunities for underprivileged children, equipping them with the necessary tools to thrive in today’s digital world.
This donation will boost digital literacy and learning opportunities for underprivileged children, equipping them with the necessary tools to thrive in today’s digital world.
Speaking at the handover event, Augustine Lule, MTN’s Regional Business Manager for Kampala, underscored MTN Uganda’s dedication to transforming communities through technology and education.
“At MTN Uganda, we are committed to ensuring that no child is left behind in the digital revolution,” he said.
“Through the MTN Changemakers initiative, we continue to support organizations that drive meaningful change at the grassroots level. This donation is not just about equipment; it is about unlocking potential, fostering innovation, and creating opportunities for Uganda’s youth.”
The MTN Changemakers initiative, launched in 2023 as part of MTN Uganda’s 25-year anniversary celebrations, was established to empower community-led projects focusing on economic empowerment, education, health, water, and environmental conservation. In December 2024, MTN Uganda announced 25 beneficiaries for the second cohort, with a total funding commitment of UGX 500 million.
MTN Uganda has already extended support to several other impactful organizations, including Bless A Child Foundation in Kampala, which supports children with cancer.
Other projects set to benefit from this initiative include Teens & Tots Neuro Centre in Kira, Kalangala Home for Children with Special Needs, Uganda Prisons Bushenyi Carpentry Project in Kalangala, Protected Springs in Lira, and the Soroti Clean Water Extension Project in Soroti, among others.
The 40 Days Over 40 Smiles Foundation, a leading advocate for literacy and education among underprivileged children, expressed its gratitude for MTN Uganda’s support.
Penninah Nabirye, the fundraising and partnerships head, who spoke on behalf of Esther Kalenzi, Founder and Team Lead at 40 Days Over 40 Smiles Foundation, highlighted the significance of the donation.
“This partnership with MTN Uganda is a major boost to our efforts in improving literacy and access to education. With these digital tools, children from disadvantaged backgrounds can now learn, explore, and develop crucial skills needed for the future. We deeply appreciate MTN’s commitment to education and community empowerment.”
The initiative was also lauded by Sharifah Ahimbisibwe, the Local Council III, who emphasized the importance of digital literacy in today’s educational landscape.
“Access to technology has now become normal. This contribution from MTN Uganda will go a long way in equipping our children and teachers with the skills required to compete in a rapidly evolving world. We encourage other organizations to take similar steps in supporting digital learning.”
Last year, during the initial phase of MTN Changemakers initiative, MTN Uganda supported the implementation of 25 projects across the country with a total investment of UGX500 million.
Uganda’s monthly headline inflation surged to 0.6% in February 2025, doubling from 0.3% in January, according to the latest data from the Uganda Bureau of Statistics (UBOS). The increase was primarily driven by rising prices of key food items, including tomatoes and fresh leafy vegetables.
Other notable contributors to inflation included fresh cassava, which saw its price rise from 2.5% in January to 4.1% in February, and dry beans, which increased from 0.4% in January to 2.8% in February.
In actual market prices, a kilogram of tomatoes that cost UGX2,576 in January is now selling for UGX 2,813, while green pepper prices jumped from UGX 2,267 per kilogram to UGX 3,261. Fresh tilapia, previously priced at UGX 16,098 per kilogram, now costs UGX17,231.
Responding to the price hikes, Samuel Echoku, a microeconomic statistician at UBOS, attributed the fluctuations to market dynamics. “All is determined by demand and supply, and most of these products are seasonal. The recent increases are largely due to reduced supply following unfavorable weather conditions in major food-producing regions,” Echoku said.
The annual headline inflation for the year ending February 2025 increased to 3.7%, up from 3.6% recorded in January 2025. However, annual core inflation, which excludes volatile food and energy prices, slowed to 3.9% in February from 4.2% in January.
Additionally, the monthly inflation for the construction sector increased by 0.2% in January 2025, compared to 0.1% recorded in December 2024. This was attributed to rising costs in the construction of buildings and civil engineering works. Materials that saw significant price increases included sand, cement, aggregate, hardcore, and broken stone, while price declines were noted in iron, steel rods, and angles.
In general terms, 2024 was good for the business sector, thanks to the relatively better macro-economic environment.
The country’s macroeconomic indicators held steady in the year with an average GDP growth of 6.6%, while the average headline inflation moderated to 3.3% in 2024, from 5.5% in 2023, and tracked below the 5.0% Central bank target.
Additionally, the local currency appreciated by 2.7% against the US Dollar in 2024, anchored by reforms in the interbank foreign exchange market, which have promoted currency stability.
Economists caution that if inflationary pressures persist in 2025, consumers may continue to experience increased costs of living, which may affect aggregate spending. Policy interventions to stabilize food production and supply chains would therefore be crucial in mitigating further price surges.
Economist Fred Muhumuza told this publication that inflation in Uganda is largely driven by structural challenges in the economy.
“The persistent inflationary pressures are not just about external shocks but also domestic inefficiencies, such as post-harvest losses and inadequate market infrastructure. Addressing these issues requires long-term investment in value addition and improved storage facilities,” Muhumuza explained.
With inflation trends showing fluctuations, policymakers and economists remain watchful of external and internal factors influencing Uganda’s economy. The government’s ability to manage inflation will be critical in maintaining economic stability and ensuring sustainable growth.
Last month, the Bank of Uganda (BoU) decided to maintain the Central Bank Rate (CBR) at 9.75%, saying the near-term inflation outlook was largely contained, though external uncertainties continue to pose risks to economic performance.
BoU Governor Michael Atingi-Ego explained that the Central Bank anticipated core inflation to stay within a 4%-5% range over the course of 2025, but global uncertainties continued to present a clear risk to the forecast.
In what CEO Sylvia Mlinge describes as a “landmark year for MTN Uganda,” the telecommunications giant recorded significant gains across all areas of its business amidst a dynamic operating environment.
According to the company’s audited financial results for the year ended December 31, profit after tax shot up by almost UGX150 billion - rising to UGX641.5 billion from UGX493 billion in 2023.
As expected, data revenue registered the biggest growth margin of 30% (UGX811 billion), followed by Mobile money at about 25% compared to 2023.
Total subscriber numbers also surged – topping 22 million, indicating a growth of about 13% year on year. Consequently, the company will pay a final dividend of UGX8.5 per share, amounting to a total of UGX190.3, billion, payable to shareholders on June 20, 2025.
That implies that the full year dividend for the year would amount to UGX22.6 per share, a total payout of UGX506 to the company’s shareholders, making MTN one of the most profitable listed companies in the country.
Speaking at a press briefing at their headquarters in Kampala, the visibly elated CEO Sylvia Mulinge attributed the company’s success in 2024 to a solid commercial execution and a conducive economic environment, including an average GDP growth of 6.6%, average headline inflation moderated to 3.3% in 2024, from 5.5% in 2023, and the stability of the Uganda shilling, which appreciated by 2.7% against the US Dollar in 2024.
”In this context, MTN Uganda sustained a positive trajectory across all business segments in 2024, registering double-digit growth across all revenue lines,” she said.
Mulinge, who scooped the coveted CEO of the Year Award for 2024 at the MTN annual awards, added that the growth was delivered as a result of the company’s focused investments in the network totaling UGX418 billion particularly in respect to 4G and 5G network. The number of the company’s 5G sites has now reached 538, up from just 37 in 2023.
MTN Uganda is currently rated as Uganda’s leading tax payer, remitting a total of UGX1.3 trillion in direct and indirect taxes, thus affirming its commitment to Uganda’s social-economic development.
The MTN Group, which has a presence in 18 countries, is set to declare the Group annual results on March 17, and revenue is widely expected to surpass the USD11 billion recorded in 2023.
Andrew Bugembe, the MTN Uganda Chief Finance Officer – arguably Uganda’s leading ‘numbers guy’ – insisted on “letting the company’s numbers for 2024 to do the talking.”
Indeed, Bugembe told journalists at the briefing that unlike in the past when Uganda used to be put in the categories of ‘others,’ the Ugandan market is now the fourth biggest contributor to Group revenue.
2025 being an election year, many multinational companies are usually cautious with their investment decisions. However, Mulinge said they would focus on concluding the structural separation of the fintech business as part of their portfolio transformation strategy - aimed at allowing them to align with regulatory obligations, scale faster and unlock further value for the shareholders through third-party partnerships and collaborations.
Richard Yego, the MTN MOMO CEO, said they are excited by the performance but they are also actively working on a plan to reduce prices for the benefit of their 20 million customer base, aimed at ensuring affordability across the board.
He said they are committed to bridging the digital divide and furthering financial inclusion and to create a marketplace that supports cashless and digital economies through affordable and inclusive financial services, in collaboration with commercial banks and dozens of payment companies that are already on the network.
Mulinge said that through the MTN Foundation, the company would continue to focus on bridging the digital divide - providing digital learning tools and supporting educational infrastructure to empower the next generation of leaders within these communities.
Entries are now open for the Africa Talent Leather Design competition —a premier platform for Africa’s designers to showcase their creativity in leather products design and commitment to sustainable fashion.
The competition, which started receiving entries on March 3, is organized by the Leather & Hide Council of America (L&HCA) and the Africa Leather and Leather Products Institute (ALLPI), according to a recent press release.
There will be winners in the three categories of apparel, accessories, and footwear.
Submissions will close on June 6, 2025 and selected designs will be announced on July 2, 2025 then the designers will be invited to submit the physical products, which must be comprise at least 50% cowhide leather.
“Now in its third year, the Africa Talent Leather Design Showcase serves as a transformative platform promoting leather as the material of choice for a sustainable future,” the statement said.
The organisers aim to champion the principles of slow fashion across the continent while showcasing Africa’s outstanding design talent.
Over the past five years, the campaign has engaged over 7,500 students from 720 universities across 48 countries, fostering innovation, responsible material use, and slow fashion advocacy – basically celebrating leather’s beauty, versatility, strength and durability, and providing a platform for designers to showcase their creativity while embracing sustainability.
By recognizing and rewarding innovation, the event serves as a launch-pad for designers to build their careers and their businesses in the leather industry.
“The Real Leather. Stay Different. Africa Talent Leather Design Showcase 2025 champions leather as the material of choice for a sustainable future, providing designers across Africa with the skills, exposure and platform to harness its beauty, versatility and durability. Now is Africa’s time to lead in creating ethical, high-quality leather products and shaping the future of sustainable fashion,” said Nicholas Mudungwe, the Executive Director of Africa Leather and Leather Products Institute.
The winners will be awarded in December 2025.
At last year’s event, Uganda’s Eddie Louis Ochom won the apparels category, with his Contemporary Leather Armour Collection - a bold fusion of Ugandan heritage and modernity.
The Africa Leather and Leather Products Institute (ALLPI) is a specialized intergovernmental organization under COMESA, dedicated to advancing the leather and leather products value chain across Africa. Headquartered in Addis Ababa, Ethiopia, ALLPI serves as a hub for innovation, research and policy advocacy to enhance the sector’s competitiveness and sustainability.
The institute provides technical support, capacity building and technology transfer to member states, empowering SMEs and fostering value addition. ALLPI champions environmental sustainability, promotes regional trade harmonization and strengthens integration through collaboration with stakeholders across the continent.
By addressing key challenges and unlocking opportunities in the leather industry, ALLPI contributes to job creation, economic growth and Africa’s global competitiveness.
Its work aligns with Africa’s vision for industrialisation and sustainable development, positioning leather as a key pillar for regional transformation.
MTN Uganda, through its MTN Foundation, has donated a fully equipped computer laboratory to Revival Girls High School in Mbarara City, as part of its digital transformation agenda.
This initiative, part of MTN’s Digital Access Program worth Shs1 billion, aligns with Uganda’s Vision 2040, the country’s Digital Transformation Roadmap, and the United Nations Sustainable Development Goals (SDGs), particularly SDG 4 (Quality Education), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 10 (Reduced Inequalities).
The newly established computer lab would benefit more than 195 students, providing them with access to ten desktop computers, a 24-hour power backup system, and one year of free internet connectivity - all valued at Shs70million.
This follows the recent provision of a similar number of computers and other assorted equipment to St. Francis Primary School for the Blind in Soroti, reinforcing MTN Uganda’s commitment to bridging the digital divide.
Additional schools set to receive computer labs under this initiative include; Iganga Secondary School, Kisoro Demonstration Primary School, Nvara Secondary School in Arua, and Ngetta Girls Primary School in Lira.
Speaking during the handover ceremony, Fazil Ddamulira, Regional Business Manager for South Western Uganda for MTN Uganda, said, "Access to technology is not just an advantage—it is a necessity. At MTN, we believe in leveraging digital tools to empower communities, and through the Digital Access Program, we are creating opportunities for students to develop critical skills for a sustainable future."
Mbarara District Chairperson Didas Tabaro said that the new computers and free internet will empower learners to harness technology for development.
“MTN Uganda has done a wonderful thing for this institution, and we expect learners to make proper use of these facilities to broaden their knowledge,” he said.
He added, “Due to limited funds, the government has not been able to equip all schools with ICT materials like computers; however, they are implementing these initiatives in phases.”
The school administration acknowledged the impact of the initiative. “Revival Girls High School has long needed such resources to enhance our students’ learning experience,” said Clare Gumoshabe, the head teacher.
“This lab will provide our learners with access to technology that will broaden their knowledge and prepare them for future opportunities.”
Students expressed their excitement about the new learning tools. “[These computers will help us with research, improve our studies, and introduce us to new opportunities in ICT,” said jackline Katushabe, a Form Four student, who also doubles as the school’s head girl.
The development comes at the time when the Uganda government is ramping up efforts to ensure digital access for students, with a plan to establish computer labs in all public secondary schools.
The Uganda Communications Commission (UCC) said it has already installed over 1,000 labs nationwide. But with more than 70% of the population under 30 years of age, the demand for digital skills far outstrips the current supply.
Youth unemployment remains a pressing issue, with rates hitting 16.3%, compared to the national average of 11.7%, according to the Ministry of Gender, Labour, and Social Development. Young women, in particular, face added barriers to accessing quality education and digital skills, limiting their career prospects.
MTN Uganda has now provided 63 computer labs to educational institutions, vocational centers, and public learning spaces across the country, including those in partnership with organizations such as Sense International Uganda, Promoting Equality in African Schools, and Enabel.
Uganda’s export sector recorded impressive growth in December 2024, with merchandise exports increasing by about 14% according to the January 2025 Performance of the Economy Report released by the Ministry of Finance, Planning and Economic Development.
The report shows that the December exports rose to about USD722 million (UGX 1.92 trillion) up from USD634 million in December 2023, primarily fuelled by higher earnings from coffee, mineral products, sesame (simsim), fish, and related products.
The growth trend was also evident on a month-to-month basis, with exports increasing by 7.3% from USD 672.62 million in November 2024.
Alongside export growth, investor confidence in Uganda’s economy remained strong, as reflected in the Business Tendency Index (BTI), which stood at 58.10 in December 2024 well above the 50-mark threshold that signals optimism.
This indicates that investors and business owners expect continued economic expansion over the next three months.
Similarly, the Composite Index of Economic Activity (CIEA), a measure of economic performance, recorded a 0.2% increase, rising from 168.0 in November to 168.4 in December 2024. This uptick reflects resilience in economic activity despite external pressures.
Meanwhile, borrowing costs for businesses declined as the weighted average lending rates for Shilling-denominated credit fell from 18.08% in November 2024 to 17.37% in December 2024.
This reduction was driven by a gradual easing of monetary policy and an increase in lending to prime corporate borrowers, who secured lower interest rates due to their reduced credit risk.
Despite the strong export performance, Uganda’s import bill topped USD1.052 billion (about UGX 3.84 trillion) in December 2024.
The increase in imports was mainly attributed to a higher demand for vegetable and animal products, beverages, fats and oils, base metals, plastics, rubber, prepared foodstuffs, and tobacco.
Asia continued to dominate Uganda’s imports, accounting for 37.4% in December 2024. China and India were the leading suppliers, contributing 50.8% and 21.0% of Uganda’s imports from Asia, respectively.
Other major sources of imports included the East African Community (EAC), the rest of Africa, and the Middle East, which accounted for 22.6%, 17.4%, and 11.3% of total imports, respectively.
Within the EAC, Tanzania and Kenya were Uganda’s top trading partners, supplying 69.8% and 26.1% of Uganda’s imports from the region, respectively.
Uganda’s export sector is showing promising resilience and growth, fuelled by agriculture, minerals, and fisheries. The strong performance of business confidence indicators and lending rate reductions further supports the country’s economic outlook.
However, the trade deficit remains a challenge due to higher import volumes. To sustain economic progress, the government and private sector must focus on expanding domestic production, increasing value addition, and reducing reliance on imports.
With continued policy support and investment in export-oriented industries, Uganda’s trade balance could improve, ensuring sustainable economic growth in the long run.
The Auditor General has raised concerns about the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project, a key initiative aimed at empowering women entrepreneurs, which he says has recorded a low uptake of funds.
According to the Auditor General, Edward Akol, only 21% of the disbursed funds for the financial year ending June 30, 2024, were utilized. Out of the total UGX52.18 billion allocated, only UGX10.96 billion was expended, leaving an unspent balance of UGX41.22 billion still sitting in the project’s bank accounts.
The report highlights significant delays in key project activities, such as the development of operational manuals and the recruitment of staff, which the project’s management also acknowledged in an interview with this publication.
The Ministry of Gender, Labour, and Social Development (MoGLSD), which is overseeing the project, has also failed to conduct training and sensitization sessions for the intended beneficiaries.
These delays have directly contributed to the low absorption of funds, preventing many female entrepreneurs from accessing the financial resources needed to grow their businesses.
Ruth Biyinzika Kasolo, the Project Coordinator, told this publication in an interview that steps are being taken to address the concerns.
“We understand the frustration that some beneficiaries are facing due to the delays. However, we have now finalized the curriculum, and training will commence in February 2025. This will ensure that women entrepreneurs are well-equipped with the necessary skills to effectively utilize the funds and grow their businesses,” she stated.
The GROW project, which is funded by the World Bank to the tune of USD217 million, aims to support over 60,000 female-owned enterprises across Uganda, with a focus on both refugee and host communities.
The project, which became effective in January 2023, targets to benefit 280,000 women entrepreneurs and employees, including 42,000 refugees. Additionally, it aims to reach over 1.6 million indirect beneficiaries.
A beneficiary, Sarah Nakyobe, a small-scale trader in Kampala, expressed her disappointment with the slow rollout. “I applied for the funds months ago, but due to the delays, I haven’t received the necessary support to expand my business. I hope the upcoming training and sensitization will fast-track the process and help women like me access the financial aid we need,” she said.
In light of the low uptake, the Auditor General has urged the accounting officer to expedite the training and sensitization programs.
“I advised the Accounting Officer to expedite the training and sensitization programs to ensure that the beneficiaries can apply and thereafter utilize the funds for their enterprises,” Akol stated.
This advice aims to ensure that the funds can be fully utilized to help women entrepreneurs build and expand their businesses, ultimately driving growth and economic empowerment in the country.
The GROW project holds the potential to significantly improve the livelihoods of women entrepreneurs, especially in marginalized communities, but its success depends on the swift and effective implementation of these key activities.
The Uganda Registration Services Bureau (URSB) has launched an initiative whose objective is to equip entrepreneurs and corporate entities with essential skills in financial literacy, corporate governance, and business management to enhance business sustainability.
The launch of the initiative dubbed, Corporate Rescue and Aftercare Support Program 2024/2025, aligns with Uganda’s National Development Plan (NDPIII) goal of fostering private sector development by preventing insolvency and supporting business recovery.
According to the 2016 Global Entrepreneurship Monitor (GEM) Report, Uganda was ranked among the world’s most entrepreneurial countries. However, it also recorded one of the highest business failure rates, with one business closing for every new one started.
This alarming trend is attributed to inadequate business management skills, financial illiteracy, weak corporate governance, and external shocks such as the COVID-19 pandemic, which saw over 40% of SMEs, struggle to recover. Additionally, a 2023 World Bank Report indicates that 70% of Ugandan businesses lack proper financial planning, contributing to high failure rates.
Speaking at the launch in Kampala, James Bulenzibuto, the Chief Executive Officer of Elimu Trust Eastern Africa, emphasized the importance of taking action before businesses fail.
"We are not here just to build CVs. We are here because the Directorate believes in proactive solutions, not post-mortems for failed businesses. Let’s change the narrative. Ask your questions, we are here to equip you for success," he said.
The program would encourage participants to fully engage in discussions and training sessions to develop strategies that will help their businesses thrive.
Barbara Kasekende, the Head of the Advisory Department at Uganda Development Bank (UDB), stressed the importance of responsible borrowing.
"Debt should be an enabler, not a burden," she said.
“Before taking on debt, business owners are advised to carefully assess their financial situation by asking: Is my business unprofitable? Is my business still too young? Have I not yet invested my own money? "If the answer to any of these is yes, reconsider. Smart borrowing fuels growth whereas reckless debt sinks businesses," she added.
A press release said that since 2016, the Official Receiver has organized multiple insolvency conferences targeting key stakeholders such as judicial officers, insolvency practitioners, bankers, regulators, and policymakers. Building on this foundation, the Corporate Rescue and Aftercare Support Program is a proactive effort to empower business owners with practical skills necessary for financial stability and sustainable growth.
The program will focus on enhancing business financial management and literacy, training participants on corporate governance best practices, providing practical business management strategies for growth and survival among others.
The program is designed for a wide range of participants, including, entrepreneurs and business owners, boards of corporate entities, regulators and policymakers, academia and business educators.
With over 500,000 new businesses registered annually in Uganda, and an estimated 50% failing within the first two years, this initiative aims to promote a culture of resilience and strategic business management.
The Directorate of Insolvency and Receivership is committed to ensuring that more Ugandan businesses survive and thrive in the ever-evolving economy, fostering long-term economic growth, the release added.
Makerere University’s College of Agricultural and Environmental Sciences has launched a facility dubbed the Agricultural Policy Research Center with the aim of bridging the critical gap between research and policy, ensuring that agricultural policies are informed by research and to provide objective, evidence-based solutions to the challenges within Uganda’s agricultural sector.
Speaking at the launch of the facility on February 24, Stephen Byantwale, the Commissioner for Crop Protection, at the Ministry of Agriculture, Animal Industry and Fisheries, highlighted its like impact on boosting the agricultural sector, which is the backbone of Uganda’s economy.
“Agriculture remains the cornerstone of Uganda's economy, contributing approximately 24% of the GDP, employing nearly 68% of the population, and generating over 35% of export earnings. However, despite its immense potential, the sector faces persistent challenges, including climate change effects, low productivity, constrained value addition, limited market access, inadequate financial support, and policy gaps,” Byantwale noted.
He emphasized that the APRC would play a pivotal role in bridging the gap between research and policymaking, ensuring that Uganda’s agricultural policies are responsive, timely, and transformative.
“For too long, policy decisions in the agricultural sector have been made without sufficient reliance on empirical data. This has led to inefficiencies in resource allocation, limited uptake of modern farming technologies, and inadequate implementation of key development programs,” Byantwale added.
Prof. Gorretti Nabanoga, the Principal of th College of Agricultural and Environmental Sciences (CAES), also emphasized the significance of APRC in transforming Uganda’s agricultural sector.
“We are mindful that the agricultural sector continues to face persistent challenges, including low productivity, market inefficiencies, and gaps in policy implementation. The launch of APRC is yet another innovation to support government efforts in addressing these challenges. We perceive this initiative as a game-changer in ensuring that scientific research directly shapes national agricultural policies, investments, and programs,” Nabanoga stated.
Prof. Nabanoga reaffirmed the university’s commitment to ensuring that impactful policies are research-driven.
“For Uganda to achieve food security, economic transformation, and environmental resilience, agricultural policies must be grounded in credible, data-driven insights. APRC is designed to bridge the critical gap between research and policymaking,” she said.
Additionally, APRC will work closely with government ministries, development partners, private sector players, and civil society organizations to translate research findings into actionable policies. The center is expected to empower farmers, agribusinesses, and policymakers with evidence-based solutions to drive agricultural growth and economic development.
Officials and researchers were in agreement that the launch of APRC marks a significant step toward positioning Uganda’s agriculture sector for sustainable development, leveraging research to inform decisions that enhance productivity, market efficiency, and overall sector resilience.
By bridging the gap between research and policy, the Centre is set to become a key driver of sustainable development in Uganda’s agri-business industry.
The APRC is a collaborative initiative between Makerere University’s College of Agricultural and Environmental Sciences (CAES) and the Office of the President.
It envisions a future where research evidence drives policy decisions, fostering sustainable agricultural development in Uganda. Its core mission is to conduct, coordinate, and disseminate high-quality policy research, offering innovative solutions tailored to the realities of Uganda’s food systems.
By linking research outputs with policy actions, the Centre will play a pivotal role in advancing Uganda’s agricultural transformation agenda.
MTN Uganda, through its philanthropic arm, MTN Foundation, is stepping up its digital literacy efforts, reinforcing its role in bridging the country’s digital divide.
So far, the Foundation has equipped 63 schools across Uganda with advanced computer labs, providing students with the skills they need to compete in an increasingly digital economy.
The initiative aligns with Uganda’s Vision 2040, the country’s Digital Transformation Roadmap, and global development priorities, including the UN Sustainable Development Goals on education, gender equality, and reducing inequalities.
MTN’s digital push is also a key pillar of its Ambition 2025 Strategy, which focuses on expanding digital and financial inclusion.
Beyond the labs, the MTN Internet Bus— a mobile digital learning centre—has provided hands on training to more than 50,000 young people in underserved communities.
Additional programs, such as the MTN Skills Academy, MTN Ace, and MTN Girls in Tech, have further enhanced digital literacy, improved employability and fostering entrepreneurship.
“Digital literacy is no longer optional—it’s a necessity,” said Bryan Mbasa, Senior Manager at MTN Foundation Uganda. “We want to give young Ugandans the tools they need to unlock opportunities in education, business, and the job market.”
This development comes at the time Uganda’s government is ramping up efforts to ensure digital access for students, with a plan to establish computer labs in all public secondary schools. The Uganda Communications Commission (UCC) said it has already installed over 1,000 labs nationwide.
But with more than 70% of the population under 30, the demand for digital skills far outstrips the current supply.
Youth unemployment remains a pressing issue, with rates hitting 16.3%, compared to the national average of 11.7%, according to the Ministry of Gender, Labour, and Social Development.
Young women, in particular, face added barriers to accessing quality education and digital skills, limiting their career prospects.
For schools already benefiting from MTN’s support, the impact is tangible. For instance, at St. Catherine Girls Secondary School in Kazo District, which has a population of over 500 students, Head Teacher Sr. Assumpta Mayar said the new computer lab is a game-changer. “This is more than just a donation—it is an investment in the future of our students. It will help them develop skills that are crucial in today’s world.”
Gulu High School’s Head Master, Nobert Tommy Ocen, echoed similar sentiments, calling on stakeholders to ensure the sustainability of the ICT facility. “This is an opportunity that we must protect and use wisely,” he said.
Meanwhile, students at St. Francis Primary School for the Blind in Soroti see the modern technology as a transformative tool. “These computers will help us transcribe our work, making learning and research easier,” said Francis Wamimbi, a P7 student.
Mbasa said MTN Uganda’s goal is not just to distribute technology but to drive long-term impact. “We’re not just installing computer labs—we’re fostering innovation, critical thinking, and collaboration,” Mbasa said. “That’s what the future demands.”
He said the company would continue to expand its digital literacy programs, working with government agencies, private sector partners, and local communities to ensure that no one is left behind.
The Uganda Revenue Authority (URA) has reported a 10% decline in tax objections filed during the 2023/2024 financial year - reducing from 45% to 35%.
This improvement is attributed to proactive measures undertaken by the authority to refine tax assessments and enhance dispute resolution mechanisms.
In the previous financial year, URA recorded 19,970 tax objections, with disputed amounts totaling UGX 207.5 billion and the discharged amount reaching UGX253.7 billion.
The discharge rate stood at 35%, with an average resolution period of 57 days. Disputed cases were resolved through three possible outcomes: disallowance, approval, or partial resolution.
Ruth Anne Agwang, URA’s Manager of Objections, credited the reduction in objections to the authority’s commitment to stakeholder sensitization and improved feedback mechanisms.
“We are committed to enhancing the accuracy of assessments,” Agwang stated, emphasizing that URA is working to prevent erroneous claims arising from misinterpretations of facts or tax laws.
According to Agwang, the most frequent causes of tax objections include discrepancies from unreconciled audit findings, limited awareness of tax obligations, and varying interpretations of tax laws.
The most commonly disputed taxes include Income Tax, Value Added Tax (VAT), Pay As You Earn (PAYE), local excise duty, and withholding tax.
Agwang also stressed the importance of filing accurate tax returns. “We urge taxpayers to ensure their filings genuinely reflect their business operations,” she noted.
For disputes escalating to legal proceedings, Agwang advocated for out-of-court settlements.
“These resolutions not only save time and resources but also create mutually beneficial outcomes for both taxpayers and the authority,” she explained.
Uganda’s legal framework governing tax objections and appeals includes the Tax Procedures Code Act 2014, the East African Community Customs Management Act 2004, and the Tax Appeals Tribunal Act, Cap 345. Under current regulations, taxpayers have 45 days to file an objection if dissatisfied with an assessment.
If unresolved, they can seek alternative dispute resolution or escalate their appeals to the Tax Appeals Tribunal, the High Court, the Court of Appeal, and ultimately, the Supreme Court.
By advocating for amicable settlements and encouraging accurate tax reporting, URA aims to expedite dispute resolution, ensuring efficiency and compliance for both taxpayers and the authority.
Uganda’s Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, has invited French investors to explore Uganda’s lucrative business environment, emphasizing the country's generous incentives and high return on investment.
Speaking at the on-going Uganda-France Economic Forum in Paris recently, Ggoobi underscored Uganda’s attractiveness to foreign investors, citing a 14% RoI one of the highest in the world.
He also highlighted that in 2023, Uganda was ranked the third most rewarding economy for investment in Africa.
“Our macroeconomic environment is stable, with low and predictable inflation, sustained GDP growth, and the most stable local currency in Africa over the past decade. The capital account is fully liberalized, allowing for 100% profit repatriation after tax,” Ggoobi stated, according to a press release.
He reassured investors that the Ugandan government is pro-private sector, offering an array of incentives such as free land for industrial development, subsidized power tariffs, and comprehensive business support services. He further noted that Uganda boasts the lowest labor costs in the region and provides unrestricted foreign ownership of projects.
With Uganda’s strategic position, investors benefit from duty-free and quota-free access to vast regional and global markets.
“Uganda’s weather is one of the best in the world, providing a natural advantage for agricultural and industrial investments,” Ggoobi added.
France has recently strengthened its economic ties with Uganda, with French companies committing $4 billion (UGX 15 trillion) in investments for 2025.
Meanwhile, Robert Mukiza, the Executive Director of the Uganda Investment Authority, highlighted investment opportunities for Ugandans in the diaspora. “We are introducing new non-tax incentives and collaborating with the Bank of Uganda on a Diaspora Bond to facilitate investment,” he said.
Abel Kagumire, Commissioner for Customs at the Uganda Revenue Authority, also briefed attendees on tax incentives available for diaspora investors, including duty-free importation of personal effects and investment-related equipment upon return.
“With Uganda’s conducive investment climate, robust incentives, and strong economic partnerships, the country remains a prime destination for French and global investors looking to maximize returns,” he added.
Musa Lukwago, a resident of Kyengera on the outskirts of Kampala, started his delivery business in 2016. For a while, business was good—until he began receiving orders that required him to have a reliable means of transport.
Determined to meet customer demand, Musa set out to buy a motorcycle. However, with limited savings, he could only afford a second-hand motorbike. What seemed like a cost-effective decision quickly turned into a financial burden as frequent breakdowns drained his earnings.
“That bike had an engine problem, and no matter how many times I took it to the mechanic, it just never worked properly. Eventually, I had no choice but to ditch it,” he recalled.
Desperate to keep his business running, Musa resorted to renting a motorcycle for UGX30, 000 per day, but the high rental fees quickly ate into his profits. He soon realized that without his own reliable bike, his business would struggle to survive.
Musa’s story reflects the challenge faced by thousands of Ugandans, especially in the informal sector. The high cost of motorcycles, combined with limited access to financing, has long made it difficult for small business owners, delivery riders, and boda boda operators to acquire the transport they need to earn a living.
However, Watu Uganda, a financing solutions provider, is determined to empower entrepreneurs and small businesses by offering affordable, flexible financing solutions that make it easier to own motorcycles and other mobility assets.
“Uganda’s transport landscape is evolving rapidly, driven by urbanization, the rise of e-commerce, and the expansion of ride-hailing and delivery services. The demand for affordable, efficient, and sustainable transportation solutions has never been greater. At Watu Uganda, we are bridging the gap for those who struggle to access traditional financing,” said Christian Kamukama, Head of Commercial at Watu Uganda.
Through digital onboarding, real-time vehicle tracking, and data-driven credit assessments, WATU ensures that even individuals with limited credit history can access financing. This innovative approach is helping more people participate in Uganda’s growing mobility economy.
Beyond financial accessibility, Kamukama says WATU Uganda is at the forefront of sustainable transport solutions. Recognizing the urgent need for cleaner mobility, the company is actively promoting electric vehicle (EV) technology within Uganda’s transport sector while continuing to support traditional fuel-powered motorcycles.
“Our approach is twofold: we ensure that boda boda riders and small business owners can access the transport they need today while also enabling a transition to cleaner mobility for a more sustainable future,” Kamukama explains.
The shift towards electric motorcycles (e-bodas) is particularly crucial for urban areas like Kampala, where air pollution is an increasing concern. With over one million petrol-powered boda bodas on Uganda’s roads, the transport sector is a major contributor to greenhouse gas emissions and urban air pollution.
“As Uganda continues to urbanize, reducing emissions will be crucial for improving public health. However, this doesn’t mean that traditional fuel-powered bikes will disappear overnight,” Kamukama added.
John Walugembe, the Executive Director of the Federation of Small and Medium-Sized Enterprises Uganda (FSME), believes that mainstreaming green energy in transportation presents a viable solution to Uganda’s economic and environmental challenges.
“The adoption of electric vehicles can help reduce dependence on fossil fuels, cut emissions, and create long-term sustainability. Additionally, the EV industry presents opportunities for job creation in manufacturing, charging infrastructure development, and vehicle maintenance. Financing these assets will further accelerate EV adoption,” Walugembe stated.
To fully integrate green energy in Uganda’s transport sector, Walugembe recommended strong government policies and incentives. While progress has been made in promoting renewable energy, he believes more needs to be done. He advocated tax incentives, subsidies, and reduced import duties on EVs and charging infrastructure to encourage widespread adoption. Additionally, he underscored the importance of public education on the benefits of green energy solutions and the need to equip local technicians with the necessary skills to service and maintain EVs.
“There must be deliberate efforts to promote the economic and environmental benefits of EVs and clean transport technologies. By reducing emissions and adopting cleaner fuels, Uganda can significantly cut air pollution while contributing to global efforts to combat climate change,” Walugembe added.
Western Uganda has increasingly faced the devastating effects of climate change, with prolonged droughts, unpredictable rainfall, and floods threatening agriculture, biodiversity, and livelihoods.
In response, the World-Wide Fund for Nature (WWF) in Uganda, in partnership with the International Institute for Sustainable Development (IISD) Canada, has stepped forward with a UGX300 million grant to support women’s groups in the region. This initiative aims to enhance climate adaptation efforts and strengthen community resilience.
According to Paul Hatanga, WWF Uganda’s Project Coordinator, the funding prioritizes empowering vulnerable communities to mitigate climate change effects.
“The World Wide Fund for Nature in Uganda has committed to supporting successful groups and vulnerable communities that have risked their potential to protect the environment,” Hatanga noted.
The grant is part of the Climate Adaptation and Protected Areas Initiative (CAPA) project, which WWF and IISD Canada launched in Rubirizi District. The initiative seeks to protect wildlife, conserve natural resources, and build local capacity to combat climate-related challenges.
Western Uganda, particularly Kasese and Rubirizi districts, has been significantly impacted by climate change. Deforestation, land degradation, and changing weather patterns have led to declining agricultural productivity and increased food insecurity. Many communities depend on farming, and erratic weather conditions have caused crop failures, livestock losses, and heightened poverty levels.
Additionally, extreme weather events, such as floods and landslides, have destroyed homes, displaced families, and put a strain on local resources. These challenges necessitate urgent interventions to promote climate resilience and sustainable environmental practices.
At Kyarumba Catholic Parish in Kasese District, WWF Uganda office officially handed over the UGX300 million grant to three women’s groups dedicated to environmental conservation and climate adaptation. The beneficiaries include:
• Kyankwanzi Bakyara Tukorere Hamwe Bika Oguzee from Kicwamba Sub-County, Rubirizi, receiving UGX 106 million.
• Nyambuko Development Group from Kasese, receiving UGX 97 million.
• Bwitho Men and Women Group, also from Kasese, receiving UGX 97 million.
The financial support will be used to implement sustainable agricultural practices, tree planting initiatives, and eco-friendly business ventures aimed at reducing the negative impact of climate change.
Women’s groups will invest in climate-smart agriculture, agroforestry, and income-generating activities such as beekeeping and eco-tourism to enhance economic stability while protecting the environment.
WWF Uganda’s Communication Officer, Happy Ali, reaffirmed the organization’s commitment to safeguarding biodiversity and promoting sustainable solutions.
“The WWF’s objectives include stopping the degradation of the planet’s natural environment and building a future where humans live in harmony with nature,” said Ali.
Asimwe Monica, the chairperson of the Kyankwanzi Bakyara Tukorere Hamwe Group, expressed appreciation for the support, stating that the funds would help expand their businesses and marketing opportunities.
MTN Uganda, through its MTN Foundation, in partnership with Sense International Uganda, has handed over a fully equipped computer laboratory to St. Francis Primary School for the Blind in Soroti, in a generous move aimed at enhancing digital inclusion for learners with disabilities.
The new computer lab, part of the Foundation's Digital Access Project, is designed to provide 122 pupils—53 girls and 69 boys—with the digital literacy skills they need to succeed in today's technology-driven world.
The lab is equipped with ten computers, including specialized software such as JAWS (Job Access With Speech) for visually impaired learners, sound amplifiers, scanners, printers, and one year of free internet connectivity.
Speaking at the official launch of the facility in Soroti City, Sr Rose Abongi Alyabo, the headteacher of St. Francis Primary School for the Blind, described MTN’s initiative as “a game-changer for our pupils.”
“For a long time, our learners have missed out on digital education due to limited resources. With these new facilities, they now have the opportunity to learn, explore, and develop skills that will open doors to a brighter future,” she said.
While technology is a critical component of modern education, many learners with disabilities in Uganda face challenges due to a lack of infrastructure and digital tools. This new lab aims to bridge that gap, ensuring equal learning opportunities for all students.
Rev. Fr. Geoffrey Akiso Odongo, who represented Catholic Bishop of Soroti Diocese as the chief guest, commended MTN Uganda for its efforts in digital inclusion.
“This initiative shows what we can achieve when we work together to support our communities. Technology is no longer a luxury; it’s a necessity. By equipping schools like St. Francis with ICT tools, MTN is helping build a better future for our children and our country,” he said.
The MTN Foundation’s Digital Access Project is a UGX1 billion investment aimed at setting up 11 computer labs across Uganda, five of which are inclusive labs designed for learners with visual and hearing impairments.
In addition to the Soroti school, inclusive labs will also be established at Iganga Secondary School, Kisoro Demonstration Primary School, Nvara Secondary School in Arua, and Ngetta Girls Primary School in Lira.
“At MTN Uganda, we believe everyone deserves access to the benefits of a modern, connected life,” said Nelson Munyanda, manager of the MTN Foundation.
“Technology can break barriers and unlock the full potential of every individual. Through initiatives like the Digital Access Project, we are ensuring that no one is left behind—especially learners with disabilities.”
Edward Otim, Regional Director for Sense International East Africa, noted that the new computer lab would significantly enhance digital literacy for learners with deafness and blindness, ensuring they have access to the latest technologies in the modern world.
The students at St. Francis were beyond words with excitement. “These computers will help us transcribe our work, reducing the workload of writing in braille and making research easier,” said Francis Wamimbi, a P7 learner.
“The computers will also help us improve our spelling and access educational content. With JAWS software, we can correct mistakes in our notes and exams, making learning more effective,” added Kem Federeta, also a P7 learner.
Over the years, MTN Uganda has supported the establishment of 63 ICT labs in schools, vocational centers, and prisons, often in partnership with organizations such as Sense International Uganda, Promoting Equality in African Schools, Enabel, and public resource centers at various district local governments.
Agri-tourism, the type of tourism that combines agriculture and tourism, is emerging as a key frontier to diversify Uganda’s tourism industry beyond traditional wildlife safaris and cultural tours, with experts projecting it could contribute at least UGX 500 billion ($135 million) to national revenue by 2030.
The sector, if fully developed, could generate over 100,000 jobs, driving rural development and economic growth.
While Uganda is globally recognized for its rich biodiversity, national parks, and wildlife, industry stakeholders believe the agriculture and cultural heritage sectors present untapped opportunities that could significantly boost national revenue and employment.
According to the Ministry of Tourism, Wildlife, and Antiquities, tourism is not only about visiting parks or wildlife conservation; there is also agro and cultural tourism that Uganda needs to sell to the international community.
On a recent guided tour to agro-tourism facilities in western Uganda, Eunice Tworekirwe told journalists that agro-tourism allows visitors to experience farming activities first-hand, is steadily gaining popularity in Uganda.
One notable success story visited was Kabeihura Farmers Limited in Bushenyi District, which has recently started attracting local tourists.
According to Eriyabu Muhozi, the farm’s proprietor, agro-tourism has expanded his business beyond expectations.
“We have started attracting local tourists, and the business is yielding because we are now supplying our products beyond Uganda, including to the Democratic Republic of Congo,” Muhozi noted.
The farm was created in 1975 on 20 hectares of land devoted to cultivating tea. Since then, the property has grown to include dairy, poultry and fish production, as well as 40 hectares of eucalyptus forest.
The farm currently employs 100 workers, illustrating how agro-tourism can create jobs and stimulate rural development. Experts estimate that if fully supported, agro-tourism could generate over 100,000 jobs by 2030, strengthening Uganda’s agricultural sector while enhancing tourism revenue.
Beyond agriculture, cultural tourism is another underutilized sector with vast potential. Mary Mugyenyi, proprietor of Nsehenyi Cultural Village in Ntungamo District, believes that cultural and agro-tourism remain largely untapped in Uganda’s tourism promotion strategies.
“Uganda is rich in diverse cultural traditions that, if well-packaged, can attract both local and international tourists. We need to invest in infrastructure and marketing to harness this potential,” Mugyenyi said.
Uganda’s growth strategy for the 2024/2025 Financial Year prioritizes agro-industrialization, tourism development, mineral exploration including oil and gas and technology and innovation. By integrating agro-tourism into the national tourism framework, the government aims to enhance revenue generation and create more employment opportunities.
The tourism sector remains a vital contributor to Uganda’s economy, generating approximately UGX5.8 trillion ($1.56 billion) annually. According to the Uganda Tourism Board (UTB), agro-tourism could contribute at least UGX500 billion ($135 million) to national revenue by 2030, if well-facilitated.
Industry stakeholders stress the need for improved road networks, marketing strategies, and supportive policies to enhance agro-tourism development. “There is a need to stimulate policymakers to invest more in agro-tourism development and related infrastructure. This will not only boost revenue but also uplift rural communities economically,” said Dr. Emmanuel Kamugisha, an economist and tourism analyst.
“With growing interest from both local and international tourists, Uganda is positioning itself as a prime agro-tourism destination. By leveraging its agricultural strength and rich cultural heritage, the country can diversify its tourism sector and drive sustainable economic growth,” said Tworekirwe.
President Yoweri Museveni has reaffirmed Uganda’s commitment to leveraging its vast natural resources to tap into the global carbon market.
At a high-level meeting at State House Entebbe, President Museveni hosted a delegation from Austria-based EcoNetix to explore strategic partnerships aimed at unlocking Uganda’s carbon removal potential.
The delegation, led by Olivia Mugabe Mitterer, included former Consul General Carl-Philipp Wipfler, former Austrian Minister of Environment and Agriculture Elisabeth Köstinger, and EcoNetix founders Jakob Zenz and Paul Nimmerfall.
Their discussions focused on positioning Uganda as a key player in the international carbon credit market, according to a press release from State House.
Welcoming the investors, President Museveni emphasized Uganda’s readiness to collaborate with European entrepreneurs.
“The Chinese have capital and entrepreneurship, and we have labor and land. So, I am very happy to see some European entrepreneurs exploring opportunities here,” he stated.
Uganda boasts over three million hectares of forests and 14 million hectares of agricultural land, offering immense potential for carbon removal initiatives. EcoNetix presented an ambitious plan to support high-integrity carbon credit projects aligned with Uganda’s sustainability and conservation goals.
EcoNetix co-founder Jakob Zenz expressed optimism about the partnership, stating, “We are delighted to work with the Government of Uganda to unlock its full carbon removal potential. Our goal is to support farmers and forestry projects while driving economic benefits for communities.”
The initiative is expected to attract up to $500 million in investments, reinforcing Uganda’s efforts in climate resilience and sustainable land management.
However, Uganda’s push for a robust carbon market faces a major hurdle following a UGX 135 billion budget cut in the tourism and conservation sector for the 2025/26 financial year. This reduction slashes the sector’s allocation from UGX 311 billion in 2024/25 to UGX 175.98 billion, raising concerns over the future of conservation programs.
Speaking at the Uganda Media Centre, Minister for Tourism, Wildlife, and Antiquities Tom Butime warned that inadequate funding could stall critical conservation efforts.
“Environmental conservation is both an ecological and economic necessity. It plays a vital role in our economy and the well-being of our communities. The lack of adequate investment limits our ability to address human-wildlife conflicts, poaching, illegal wildlife trade, and the impact of climate change on biodiversity,” Butime stated.
He also stressed the need for a holistic, collaborative approach involving governments, financial institutions, businesses, civil society, and local communities to ensure long-term conservation financing.
Despite financial constraints, Uganda remains committed to scaling up carbon credit initiatives to strengthen its role in the global fight against climate change. By implementing sustainable land use practices, Uganda aims to not only mitigate environmental threats but also create financial opportunities for local communities.
With EcoNetix set to become a key implementation partner, the collaboration could significantly boost Uganda’s carbon economy, turning conservation efforts into a lucrative revenue stream while promoting climate resilience and sustainable development.
President Yoweri Museveni has appointed Dr. Michael Atingi-Ego as the substantive Governor of the Bank of Uganda (BoU), replacing the late Tumusiime Mutebile.
High profile Economist and university don Prof. Augustus Nuwagaba as the Deputy Governor.
Atingi-Ego previously held a senior position at BoU before leaving and later returning in 2020 as Deputy Governor. Since the passing of long-serving Governor Emmanuel Tumusiime-Mutebile in 2022, he has been serving as the acting head of the central bank. His appointment marks a significant moment for Uganda’s financial sector, ensuring continuity in the leadership of the country’s monetary policy framework.
Dr. Atingi-Ego’s career in economic policy and financial governance spans decades. He has served in various roles both locally and internationally, making substantial contributions to macroeconomic stability. His tenure as Deputy Governor has been marked by steady inflation control and overall macroeconomic stability, earning him recognition as a highly competent leader in Uganda’s financial sector.
His ability to navigate economic challenges and implement effective monetary policies positioned him as a front-runner to replace the late Mutebile. Under his leadership, Uganda has managed to stabilize inflation and promote sustainable economic growth.
As Governor of the Bank of Uganda, Atingi-Ego will oversee the implementation of monetary policies, regulate financial institutions, and ensure the stability of Uganda’s banking sector. The central bank plays a crucial role in managing inflation, stabilizing the currency, and fostering economic development.
With Uganda’s economy recovering from global economic shocks and local challenges, Atingi-Ego’s leadership is expected to reinforce investor confidence, promote financial inclusion, and support economic growth. His expertise in monetary policy and financial governance will be essential in maintaining stability and guiding Uganda’s banking system through emerging global financial trends.
Atingi-Ego’s deputy, Prof. Nuwagaba, has been an economics don at Makerere University, and brings extensive knowledge in economic development and policy formulation, at national, regional and international levels.
Their appointments signal a commitment to strengthening the country’s financial institutions and ensuring sound economic management. Uganda’s banking sector will benefit from their combined experience and leadership in fostering financial resilience and growth.
Dr. Atingi-Ego’s appointment as Governor of the Bank of Uganda marks a new chapter for Uganda’s economic management. His experience and track record in financial policy will be instrumental in maintaining economic stability and ensuring continued growth. The government, private sector, and financial institutions are expected to work closely with the new leadership to drive Uganda’s economic development forward.
Among Bank of Uganda's roles is to keep prices stable, which means controlling inflation and ensuring that the value of the Ugandan shilling remains stable.
The Bank of Uganda is responsible for regulating and supervising financial institutions in Uganda, ensuring that they operate safely and soundly.
- The Bank of Uganda also manages the payments system in Uganda, ensuring that transactions are processed efficiently and securely.
When Andrew Mujuni lost his job as a security guard, his world turned upside down. After eight years of dedicated service, he was suddenly retrenched without warning.
With his only source of income gone, he struggled to provide for his family, and his children were forced to drop out of school due to unpaid fees.
“My wife and I were constantly arguing, and I was bitter all the time. One day, after a serious fight with my wife, a neighbour suggested I try the boda boda business. He advised me to take a loan from Watu Credit,” Mujuni recalls.
Realizing this could be his lifeline, Mujuni took the leap into the unknown. He partnered with his wife and became the rider while she managed the finances. Barely a year later, the motorbike became a symbol of hope. "My kids are back in school, my wife is happy, and we’re planning our future together," he says with pride.
For 22-year-old Simon Kalyesubula, the challenge was different but just as daunting. After losing his father, he became the family's sole provider, ensuring his younger siblings stayed in school. Without financial support, he turned to Watu Uganda for a boda boda loan.
Determined to secure a better future for his siblings, Kalyesubula worked tirelessly and eventually acquired a second motorbike, which increased his income. He has now secured a better future for his family.
It is estimated by the Private Sector Foundation of Uganda (PSFU) that the country has approximately two million motorcycles, with Kampala alone boasting of about 350,000 of them.
It is also estimated that approximately 70% of the country’s population use the boda boda for their daily transport needs, making it the mode of transport almost indispensable.
Frank Mawejje, the Chairman of the Uganda Boda Boda Association, says the sector has become a pillar of the country’s economy.
“Boda bodas provide thousands of young people with a stable source of income, contributing significantly to nation-building. We are also seeing more asset financiers helping young entrepreneurs overcome initial investment barriers, which is a huge boost to the industry,” Mawejje explains.
He also acknowledges the government’s role in making the sector more accessible by creating a favourable regulatory environment supporting financiers and riders.
To date, Watu Uganda has financed over 300,000 boda boda riders, enabling them to become self-employed and financially independent. These were previously without access to traditional credit.
Christian Kamukama, the Head of Commercial at Watu Uganda, explained: “Our financing model is designed to be flexible, with low initial deposits and manageable installment plans. We focus on business potential rather than traditional credit requirements, making asset financing more accessible—especially for youth and women-led businesses."
Kamukama said Watu Uganda is driving economic growth, transforming lives, and strengthening communities by empowering entrepreneurs with access to productive assets.
From struggling fathers to determined young men, boda boda loans are proving to be more than just a way to own a motorbike. They are increasingly being seen as a tool for empowerment for a brighter tomorrow.
The Central Bank Rate (CBR) for February will remain at the same rate of 9.75%, which has been in place since the end of last year, according to the Bank of Uganda.
The decision, announced on February 6, came as part of the BoU's Monetary Policy Statement, in which Deputy Governor Michael Atingi-Ego indicated that the near-term inflation outlook was largely contained, though external uncertainties continued to pose risks to economic performance.
In the face of global challenges, including geopolitical tensions and fluctuating global currencies, the BoU has exercised caution by keeping the benchmark interest rate unchanged. This decision underscores the importance of balancing inflation control with the need to stimulate sustainable economic growth in Uganda.
Uganda's inflation figures show a mixed picture. The core inflation rate, which the BoU aims to keep at around 5%, rose slightly to 4.2% in January 2025, up from 3.9% in December 2024. This increase was largely driven by rising costs in transport services.
While the year-on-year inflation remained relatively stable, the BoU recognizes that inflationary pressures may emerge from external sources, such as extreme weather patterns, shifts in global oil prices, and the strength of the U.S. dollar. These external factors could lead to a quicker-than-expected rise in inflation, making it all the more critical for the central bank to adopt a cautious monetary policy stance.
Atingi-Ego explained that the Central Bank anticipates core inflation to stay within a 4%-5% range over the course of 2025, but global uncertainties present a clear risk to this forecast.
The Central Bank’s ability to respond to such inflationary shocks while maintaining growth targets, is closely tied to its monetary policy framework, and leaving the CBR unchanged ensures the economy has the right mix of support to avoid destabilizing price pressures.
“Uncertainties from global developments could cause inflation to rise faster and disrupt economic activity. This situation necessitates a cautious approach to monetary policy,” Atingi-Ego said.
Despite these risks, Uganda's economic outlook remains optimistic. The BoU has maintained its growth projection for FY 2024/25 at 6.0-6.5%, with long-term growth expectations at around 7.0%.
This growth is supported by a stable macroeconomic environment, foreign direct investment (FDI) flowing into the extractive industries, and strong export performance, particularly in coffee and cocoa.
However, the Bank also recognizes that government spending pressures and external economic headwinds could dampen these growth expectations, highlighting the need for a cautious monetary policy approach.
In terms of the exchange rate, the currency has shown signs of strengthening, appreciating by 3.05% year-on-year in January 2025 compared to January 2024. This improvement has been attributed to a combination of favorable monetary policy actions, financial market reforms, and strong inflows from remittances, export receipts, and foreign direct investment. A stable exchange rate is crucial for controlling inflation, particularly in the context of imported goods and services.
The decision to maintain the CBR at 9.75% reflects the BoU’s commitment to keeping inflation under control while supporting economic growth.
“The current CBR level is adequate to control inflation while fostering Uganda's economic growth and socio-economic transformation. Future adjustments to the CBR will depend on new data and evaluation of risks,” he added.
Going forward, future changes to the CBR will depend on new economic data and evolving global risks.
As the world continues to face uncertainty, the BoU's cautious and data-driven approach will play a vital role in navigating the challenges ahead, ensuring that Uganda remains on a path of sustainable economic transformation.
When Robert Kabushenga quit his posh CEO job at Vision Group to focus on his Rugyeyo Farm, he thought he would become a living example of how coffee farming can be more lucrative than one of the fattest salaries in the country.
Indeed, Kabushenga has over the years shown a passion for coffee, and talked his voice hoarse about the entrepreneurial opportunities that coffee presents to young Ugandans, and why Ugandans should have a patriotic love for Ugandan coffee.
However, his optimism appears to have taken a downward spiral. “Folks, say a prayer for Uganda’s coffee,” Kabushenga wrote in a recent tweet on his X page, which was accompanied by a shocking picture of a sack full of green coffee cherries and another picture of a job advert for almost 100 vacant positions at the Ministry of Agriculture, Animal Industry and Fisheries.
“The political myopia and monumental stupidity that dismantled the regulator (UCDA) has sent us back decades,” he added. “We’re headed off a cliff. Maybe they will bring in soldiers to handle the way they did with fish. We didn’t need to be here. It was unnecessary.”
The Uganda Coffee Development Authority (UCDA), the long-standing regulator of the coffee industry in Uganda, was merged with the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) in November last year, following the enactment of the National Coffee (Amendment) Bill, 2024, as part of the Rationalisation of Agencies and Public Expenditure (RAPEX) policy, ostensibly aimed at streamlining public spending and reducing redundant administrative structures.
The disbanding of UCDA faced vehement opposition from a cross section of Members of Parliament and indeed almost every coffee stakeholder, over concerns of the potential negative impact it would have on the coffee industry.
Just a few months later, Kabushenga is only one of the many key stakeholders that are voicing serious disquiet. Posiano Matovu, the Chairman of the Greater Masaka Coffee Farmers Association, also expressed concern saying the dismantling of UCDA could jeopardize the market gains secured by Uganda’s coffee sector over the years.
“We, as farmers, we were never consulted,” Matovu told this publication. “At both the presidential and parliamentary levels, no one has sought our views. We need to understand if the authority is shifted to the Ministry, will we continue to benefit? MAAIF has a history of corruption scandals, and we simply don’t trust it.”
Matovu further criticized the Ministry’s poor track record in crop management, citing the failed introduction of vanilla as an example of poor planning that left farmers without markets.
He expressed fear that the excessive bureaucracy at MAAIF was slowing down service delivery and negatively impact coffee exports.
Gerald Ssendaula, Chairman of the National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE), warned that the merger would “backfire” and create more problems than solutions.
“This decision is set to backfire because there is too much red tape at the Ministry,” Ssendaula said. “Coffee is a specialized crop that requires dedicated oversight, and placing it under a general agricultural body may dilute the focus needed to maintain our export standards.”
UCDA, established in 1991, has played a significant role in boosting Uganda’s coffee sector. The authority was regulating and promoting the quality of coffee along the entire value-chain, supporting research and development, and enhancing marketing to maximize foreign exchange earnings.
Consequently, Uganda's coffee exports surged to record highs in recent years. In the last financial year, the country exported 6.3 million bags of coffee, representing a 75% increase compared to the previous year. These exports generated USD 826 million, accounting for 22% of Uganda’s foreign exchange earnings. Industry experts worry that merging UCDA with MAAIF could compromise the efficiency that has enabled such growth.
Another major concern for farmers is the absence of extension officers, who provide crucial technical support to farmers on the ground. “Coffee is a unique crop, and not all government agricultural extension officers at the sub-county and district levels understand it well,” Matovu emphasized. “Losing UCDA’s dedicated officers would be a big setback for farmers.”
The Government of Uganda, in partnership with the Uganda Energy Credit Capitalization Company (UECCC), has launched the construction of nine mini hydropower plants with a combined capacity of 6.7MW in western Uganda.
The initiative, expected to significantly boost rural electrification, was officially inaugurated by the Deputy Speaker of Parliament, Hon. Thomas Tayebwa, in the presence of local leaders, development partners, and community members.
The ORIO mini hydropower project, covering Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo districts, will include a 288-kilometer local distribution network to expand electricity access. The project aims to connect over 71,081 households and 2,300 small and medium enterprises (SMEs), providing stable electricity for business growth, education, and healthcare.
Tayebwa emphasized the project’s role in transforming rural communities and supporting Uganda’s industrialization agenda. “This project will provide the infrastructure needed to support industrialization and improve the living conditions of our people. For the communities in Mitooma and across western Uganda, this will unlock new opportunities in education, healthcare, business, and agro-processing,” Tayebwa said.
Ruth Nankabirwa, the Minister of Energy and Mineral Development, highlighted the project’s alignment with Uganda’s energy goals.
“This initiative will be a game-changer for rural electrification in Uganda. Upon completion, the project will deliver reliable electricity to over 376,000 people and 1,300 SMEs, cut carbon emissions by reducing diesel generator use, and enhance public health by decreasing reliance on kerosene lamps,” she said.
The project is funded by the ORIO Infrastructure Fund (now under Invest International) of the Netherlands Government, with co-financing from the Government of Uganda. UECCC secured a grant of €13.1 million (approximately UGX 50 billion) for its development.
The UECCC was established in 2009/2011 as a company limited by guarantee, owned by the Government of Uganda through MEMD, MoFPED and PSFU to facilitate investments in Uganda’s high-potential renewable energy sector.
UECCC’s mandate is to provide a reliable framework for pooling resources from Government and Development Partners (Uganda Energy Capitalisation Trust) and to channel the same to viable renewable energy projects.
It also serves as a Credit Support Institution with the objective of promoting Private Sector-led renewable energy infrastructure development.
Speaking at the event, Joost Van Ettro, Deputy Ambassador and Head of Development Cooperation at the Embassy of the Kingdom of the Netherlands in Uganda, reaffirmed the Netherlands’ commitment to supporting Uganda’s energy sector.
“Through Invest International, we have contributed UGX 50 billion, covering 30 percent of the project cost, while Uganda has committed to financing the remaining portion. Reliable and affordable energy is a key driver of economic growth worldwide, and we are proud to support Uganda in this endeavor,” Ambassador Ettro stated.
Officials said UECCC would continue to provide financial, technical and other support for Renewable Energy Infrastructure Development in Uganda, with particular focus to enabling private sector participation.
Roy Nyamutale Baguma, the UECCC Managing Director, noted that the project is to be executed in phases, with the first phase covering four sites: Nchwera, Igassa, Nsongya, and Hoimo. Construction is to be undertaken by HNAC Technology Co. Ltd from China for civil and hydro-mechanical works, while Germany’s Ossberger GmbH will handle the design and installation of turbines and electromechanical systems.
The entire project is set for completion within 24 months, promising a brighter and more electrified future for western Uganda.
The Archbishop of Kampala, Paul Ssemwogerere, has praised Kabaka Ronald Mutebi’s initiative to provide healthcare services to his people through the ‘Tubeere Balamu’ (Let's Live) community outreach program.
Speaking during a visit to the DTB-sponsored outreach at St. Joseph Parish in Kyengera, the Archbishop emphasized the critical need for accessible healthcare for all Ugandans.
"I appreciate the platform that the Kabaka has established to help his people access health service delivery. Good health is very important. Due to my work, age and responsibility, I have seen the need for health services in the country, as so many people need free access to medical services across the country," Ssemwogerere said.
The Archbishop acknowledged the state's responsibility to provide free healthcare but commended the Kabaka for taking the initiative to address the immediate needs of his people. He urged Parliament and the Cabinet to prioritize universal healthcare and ensure adequate health facilities nationwide.
"The reason churches and mosques are full of people seeking divine healing is because they don't have money to go to hospitals, even for simple ailments. While this is not bad, there should be either free or affordable health services for the people across the entire country," the Archbishop observed.
He called for increased budget allocation to the Ministry of Health, emphasizing that the state has a responsibility to keep its people healthy. He also appealed to private healthcare providers to lower costs and refrain from selling expired medicines or employing unqualified staff.
The campaign, mainly sponsored by Diamond Trust Bank, saw thousands of people throng the venue to receive various treatments.
Robert Waggwa Nsibirwa, the Second Deputy Katikkiro of Buganda, who represented the Kabaka, expressed gratitude for the support received for the "Tubeere Balamu" outreach, which began in Buddu, Masaka, last November. He encouraged people to follow medical advice and maintain hygiene.
“As you remember, this outreach started in November last year, in Buddu Masaka. We believe many people benefited from it, and we thank all the medics who provide these services during these camps. We appreciate all the support from across all platforms in our efforts to improve the health of our people. We advise our people to adhere to the instructions of the medics and to be clean,” he said.
Edward Kaggwa Ndagala, head of the Kabaka Foundation, explained that the foundation, established in 1996, serves as the Kabaka's vehicle for service delivery in various areas, including health, education, and community development.
He highlighted past successful health campaigns, such as the Hepatitis B immunization drive and the blood donation drive, which significantly increased blood donations in the country. He said the current "Tubeere Balamu" campaign aims to recruit 300,000 new blood donors.
“We launched a blood donation drive in support with the Red Cross and the Uganda Blood Bank. At the start of the campaign, they had about 20,000 regular blood donners but after the campaign, the numbers climbers to 170,000.
The current Tubeere balamu campaign for this year, we are targeting 300,000 new blood donners to alleviate blood scarcity in Uganda,” he noted.
Samuel Matekha, Head of Marketing and Communications at Diamond Trust Bank (DTB), emphasized the bank's commitment to supporting the Kabaka's health initiatives.
"As a bank, we are here to offer service to the people. We know that it is only healthy people who can work, and as a result, can use the bank's services," he said, urging people to seek professional medical care and to work hard and utilize banking services.
Telecommunications giant MTN Uganda has earmarked $100m (about UGX370) for investment in the Ugandan market. Speaking to journalists at their offices in Kampala, Sylvia Mlinge, the MTN Uganda CEO, said the capital expenditure would fund their infrastructure expansion programme countrywide aimed at driving their digital transformation agenda.
“We want to invest in rolling out our fibre infrastructure and enhance our backend aimed at driving the digitization of our services,” she said. “It’s a big investment from the technology perspective. This is to enable us give our customers the best experience.”
She stressed that digital transformation is one of their key strategic initiatives for 2025 including the integration of artificial intelligence (AI) in their technology setup.
“There's a lot of work that has been done at group level in terms of driving our AI strategy, aimed at ensuring that MTN is able to deliver efficiencies in terms of cost savings for the customer through automation,” she said.
However, Mlinge also highlighted the importance of regulation to ensure that AI is not used negatively to the disadvantage of people.
“How do we ensure that even as we participate in this space, we're also working with the regulators to ensure the ethics of AI, protecting the identity of our customers, making sure that their data privacy is also not impacted?”
Mlinge said that in line with the company’s vision of ‘everyone deserves the benefits of a digital modern connected life,’ the other priorities are maintaining their market-leader status and making sure that the government’s priorities - education, health, oil exploration, etc, are MTN’s priorities too.
“We can’t have strong companies in failing communities. Every organization that has been given the license to operate in any society has the responsibility to bring value that can drive the overall positive incomes of that society,” she said. “Our role as MTN is to empower and enable our communities. The ‘Unstoppable Uganda’ that we envision is a country where people are able to leverage on our technologies to drive their progress forward.”
She added that it is imperative that they invest in cutting-edge infrastructure such as 5G so as to offer a world-class network. MTN Uganda currently boasts of over 550 5G sites that have been deployed countrywide. They are also rolling out their fibre infrastructure to connect homes, businesses and base stations. Additionally, MTN is working with the digital entrepreneur community aimed at coming up with new services on their mobile money platform so as to unlock more value for Ugandans.
Last year, MTN launched its API platform dubbed ‘Chenosis,’ which allows entrepreneurs of whatever size and skill to connect to MTN services. It aims to foster innovation and create new opportunities for businesses and developers in Africa.
“We see an opportunity to actually unlock the potential within the technical or technology space by partnering with innovative entrepreneurs - giving them access to our platforms, especially on mobile money. We are an enabler. We create the network effect, which allows as many people as possible to be partners,” she said.
Todate, ‘Chenosis’ has enabled different segments of businesses including small entrepreneurs to interact with MTN’s technology. The company is also investing heavily in driving digital skilling and transformation both in urban and rural areas, aimed at scaling up digital literacy and transformation.
“We are partnering with organizations that are also in the same space, including UN-led organizations, to help us to bridge the digital divide,” she said.
“We have a role to play in terms of establishing, first of all, the connectivity, which is a foundation, and after that, to unlock the true value in the various segments of our customer base.”
MTN Uganda, the leading telecommunications company in Uganda, is part of the MTN Group, a multinational telecommunications company with a presence in various countries across Africa and the Middle East.
Mlinge stressed that in the New Year, they are focusing on multi-million-dollar investments aimed at expanding their fintech and digital services portfolio, including mobile financial services, data services, and other digital solutions.
Uganda continues to cement its position as a key player in the global coffee market, earning UGX424 billion (US$ 115.03 million) from coffee exports in December 2024.
According to the Monthly Coffee Report – December 2024 released by the Ministry of Agriculture, Animal Industry, and Fisheries, the country exported 413,079 bags during the month, reflecting a 2.77% increase in quantity and a remarkable 74.26% rise in value compared to the same period in 2023.
Robusta coffee dominated with 365,853 bags valued at $99.91 million, an 8.36% rise in quantity and 88.7% increase in value compared to December 2023. Meanwhile, Arabica exports totalled 47,226 bags worth US$ 15.12 million, representing a 26.57% decline in quantity but a 15.54% increase in value.
The report attributed the surge in export value to a rise in global coffee prices driven by dry conditions in Brazil and Vietnam, the largest producers of Arabica and Robusta coffee, respectively. These adverse weather conditions are expected to impact coffee yields, creating a potential supply deficit in the 2024/25 crop season.
For the calendar year 2024, Uganda’s coffee exports totalled 6.37 million bags worth US$ 1.55 billion (UGX 5.71 trillion), up from 6.12 million bags worth US$ 965.27 million in 2023. This represents a 4.12% increase in quantity and a staggering 60.61% rise in value.
"Coffee exports in 2024 have performed exceptionally well, with Robusta leading the growth in both quantity and value," the report noted. However, Arabica exports faced setbacks due to the biannual off-year cycle and poor flowering conditions in the Mt. Elgon region.
The report also highlighted the significant role of exporters, with 67% of the total volume in December handled by just ten companies out of 60 active exporters.
Top among the exporters included Kyagalanyi Coffee Limited, a company that has consistently contributed to the country’s coffee export success. Kyagalanyi Coffee Limited, one of Uganda’s oldest and largest coffee exporters, plays a key role in processing and exporting premium-quality Arabica and Robusta coffee. In December 2024, the company reported strong export volumes, leveraging its expertise in sustainable sourcing and farmer partnerships.
Notably, the highest price per kilogram, US$6.63, was fetched by Mt. Elgon A+, reflecting the premium quality of Uganda’s Arabica coffee from this region.
Despite challenges in Arabica production, Uganda’s overall performance was buoyed by strong demand and favourable global market conditions. The robust growth underscores the importance of coffee to Uganda’s economy as a major foreign exchange earner and a key driver of rural livelihoods.
As the country moves into 2025, stakeholders in the coffee value chain are optimistic about sustaining this growth. Continued efforts to improve quality, expand production, and tap into high-value markets will be crucial in capitalizing on the growing global demand for coffee.
“With Uganda’s coffee exports achieving such significant milestones, the sector remains pivotal in shaping the country’s economic trajectory, driving growth, and ensuring sustainable development,” the report adds.
Electricity Regulatory Authority (ERA) boss Ziria Tibalwa Waako, has predicted a potential 10% reduction in electricity tariffs when the Uganda Electricity Distribution Company Ltd (UEDCL) eventually takes over of the electricity distribution network from Umeme Ltd.
Speaking during a media engagement on the transition and its implications for tariffs, Waako emphasized the financial benefits of the government-led model.
“If government provides the capital for the Uganda Electricity Distribution Company, as I’ve shared, it comes in at a low cost of financing below 8% – somewhere between 4% and 8%,” she stated.
“Naturally, the tariff would reduce by approximately 10%, depending on the exact terms. However, should government not provide the capital for UEDCL, it means UEDCL will have to borrow. If this borrowing isn’t concessional, we’ll revert to private financing within the distribution network.”
UEDCL has officially been handed the electricity distribution license, positioning it to replace Umeme come April 1, 2025, with Umeme’s 20-year concession ending on March 32. It expects lower operational costs and tariffs by taking control of the distribution network.
According to Waako, private financing under Umeme’s concession attracted a 20% return on investment, significantly driving up costs.
“Currently, the cost of financing in the distribution segment is borne by Umeme's shareholders through a mix of equity and debt,” she explained. “Every capital investment in the distribution network has been earning a 20% return. This model has increased costs passed on to consumers.”
She further highlighted the government’s strategy to prioritize concessional funding. “The information we have is that government will finance the capital investments within the distribution network at a low cost of financing. With concessional rates below 8%, the cost of financing will be cut by more than half, translating directly into lower tariffs for end users,” she added.
While consumers remain pensive ahead of the looming transition, UEDCL’s re-entry into the distribution sector marks a pivotal shift in Uganda’s electricity landscape.
The Ministry of Finance, Planning, and Economic Development has committed to ensuring a seamless transition by funding UEDCL operations and settling Umeme’s outstanding investments, though the sources of the funds remain unknown.
The Office of the Auditor General is currently determining the buyout amount as per the Lease and Assignment Agreement. “The Ministry of Finance has pledged to provide the buyout funds on time to avoid any disruption in service delivery,” Waako noted.
The transition is also expected to preserve jobs within the sector, according to the regulator. “In previous transitions, over 98% of staff were retained by the government utilities,” Waako remarked, expressing confidence in a smooth handover process.
UEDCL’s return to managing the distribution network aligns with the government’s broader strategy to make electricity more affordable and accessible.
With current electricity tariffs among the highest in the region, this change is expected to ease the financial burden on consumers while improving service delivery.
By leveraging concessional financing and reducing reliance on expensive private capital, the government is poised to achieve a sustainable and cost-effective energy sector.
According to ERA, the transition also represents a significant opportunity for Uganda to redefine its energy infrastructure and prioritize affordability. The reduction in tariffs by approximately 10% is anticipated to not only spur economic growth but also enhance the quality of life for millions of Ugandans.
DOB Equity, an investment fund based in Kenya, has announced that it will provide funding to Spouts International, a company enabling access to clean water through its locally-manufactured ceramic water filters under the brand name Purifaaya.
DOB Equity is an impact investment fund dedicated to empowering transformative businesses across East Africa. With a renewed focus on sustainable food systems, energy and water and sanitation services, DOB Equity supports innovative enterprises that deliver measurable social, environmental, and economic impact.
In a recent press release, the company said the investment in Spouts aligns with their renewed focus on sustainable water solutions, as part of its broader strategy supporting sustainable food systems, energy and water and sanitation services across East Africa.
“This funding will enable Spouts to scale its manufacturing capacity, strengthen distribution networks, and expand its reach across East Africa,” it said, adding that since its inception, the company has distributed close to 300,000 filters, benefiting close to two million people while eliminating over 1.5 million tons of carbon emissions.
The Purifaaya water filters, made from locally sourced materials, use advanced ceramic filtration technology and are designed to be simple and accessible for everyday use. The filters supplied by Spouts offer a safe, affordable and eco-friendly solution for clean drinking water, eliminating the need for traditional boiling methods that are harmful to the environment.
By eliminating the need to boil water, they address critical health and environmental challenges, including; indoor air pollution caused by firewood or charcoal used for boiling water, deforestation from the unsustainable harvesting of wood for fuel, high carbon emissions from traditional boiling methods.
By enabling communities to reduce their carbon footprint, Spouts is able to provide high quality, verified carbon credits, which, together with commercial filter sales, transforms the way clean water is accessed in underserved communities.
“Spouts marks our first investment under DOB Equity’s new strategy, falling specifically under our “Water” Pillar. Spouts fully aligns with our mission to support scalable, local innovations that have clear social impact to the underserved and supports these communities to better adapt to the negative impacts of climate change, said Karen Serem Waithaka, the DOB CEO.
“We are glad to have found a company in the water sector that not only achieves significant impact by providing clean drinking water but also demonstrates financial viability through its innovative business model.”
She added: “With less than 25% of East Africa’s population having access to reliable safe drinking water, the need for solutions like Purifaaya filters is urgent. By addressing both health and environmental issues, Spouts is driving transformative change in the region and setting a benchmark for sustainable impact.”
Daniel Yin, the Spouts CEO, expressed excited to work together with DOB Equity in Spouts’ next phase of growth and impact. “DOB and Spouts’ missions were aligned since the early stages and we are looking forward to providing millions of additional families with long-term access to safe drinking water, together,” he added.
Spouts has caused a stir in both Uganda and Rwanda in recent years thanks to its innovative and affordable products. Recently, the company marked a huge step forward in their mission for providing safe water access to five million households across Africa by 20303.
Incofin Investment Managers committed EUR 3 million to support SPOUTS through the Water Access Acceleration Fund, empowering the ceramic water filters to reach even more underserved communities.
Currently, the DOB’s diverse portfolio includes 25 high-impact companies driving sustainable growth and resilience in the region. Beyond providing financing options such as equity and equity-like instruments, DOB Equity offers access to networks, governance and strategic guidance, enabling local entrepreneurs to scale their businesses and maximize their impact.
Officials said this funding would enable SPOUTS to scale its operations across East Africa, expand its manufacturing capacity, and strengthen its distribution networks.
Flynas, a popular Saudi Arabian low-cost airline, has inaugurated its flights from Riyadh to Entebbe International Airport.
The airline’s Airbus 320 NEO received a water cannon welcome salute at Entebbe to mark the occasion, and is scheduled to have three weekly flights on Monday, Thursday, and Saturday.
Formerly National Air Services (NAS Air), the company changed its name from Nas Air to Flynas in November 2013 and has since grown to become one of the Middle East’s leading low-cost carriers, operating a fleet of 61 aircraft to over 70 destinations worldwide.
The airline, which has consistently been ranked among the best low-cost carriers globally, is potentially set to give Uganda Airlines a good run for its money on the lucrative route.
But according to Uganda Civil Aviation Authority, the coming of Flynas is a crucial development for both Uganda’s tourism and trade sectors. The direct connection is expected to foster significant growth in tourism, particularly eco-tourism and adventure travel, while also providing Ugandan businesses with better access to the Saudi market.
“This new flight route marks a significant milestone for Uganda’s tourism sector,” Vianney Luggya, the spokesperson for the Uganda Civil Aviation Authority (UCAA), told this publication.
“With Flynas offering affordable travel options, we expect to see a substantial increase in the number of Middle Eastern tourists visiting Uganda’s renowned attractions, such as the mountain gorillas and our pristine national parks.”
The Middle East, particularly Saudi Arabia, has seen growing interest in adventure and eco-tourism, which Uganda excels in. This new air link would allow Middle Eastern tourists easier and more affordable access to Uganda’s national parks, safaris, and cultural heritage sites.
The UCAA projects that the new route could increase tourist arrivals from the Middle East by at least 10% within the first year of operations.
Also, Saudi Arabia has in recent years become a major destination for Ugandans seeking jobs. According to official estimates, around 165,000 Ugandans are working in temporary employment contracts in Saudi Arabia and other Gulf states, primarily as domestic workers, with hundreds more preparing to go.
Also, the airline would cash in from the annual pilgrimage to Mecca as Uganda is one of the leading senders of pilgrims on the annual hijja.
In addition to tourism, the introduction of direct flights between Riyadh and Entebbe holds considerable promise for expanding trade between Uganda and Saudi Arabia. Saudi Arabia is already one of Uganda’s key trade partners, with bilateral trade valued at over $230 million in recent years. Uganda’s major exports to Saudi Arabia include agricultural products such as coffee, tea, and flowers, as well as minerals and other natural resources.
“The direct flight service between Riyadh and Entebbe will make it much easier for Ugandan businesses to access the Saudi market,” said Luggya. “This enhanced connectivity is expected to facilitate trade, particularly in Uganda’s export sectors, including coffee, flowers, and fresh produce. We are also optimistic that it will lead to new investment opportunities between our two countries, further strengthening our economic ties.”
Flynas is one of the most profitable airlines in the Middle East, and reported a revenues surge of 46% for the first half of 2023 compared to the same period of the last year, as passenger numbers increased 26% to about 5 million passengers.
The success of flynas has been recognized with many international awards, including Skytrax International Award as the Best Low-cost Airline in the Middle East in 2023 for the sixth time in a row and the 4th Best LCC worldwide.
Through its ambitious National Civil Aviation Strategy, the Kingdom of Saudi Arabia has set its target at supporting its airlines to connect the country to 250 International destinations and to fly some 330 million passengers, including 150 million tourists annually by 2030.
Standing at UG 96.1 trillion ($25.3 billion) as of June 2023, Uganda’s debt burden is approximately 52% of the country’s GDP. This debt comprises UGX 44.6 trillion in domestic debt and UGX 52.8 trillion in foreign debt. In his latest annual report, the Auditor General highlights the growing challenge, and more so given that an additional UGX 7 trillion in loans awaits approval from Parliament.
Analysts argue that this surge in debt, combined with rising servicing costs, stagnating domestic tax revenues, and dwindling export revenues, potentially places Uganda in significant debt distress, raising the specter of a full-blown debt crisis.
The most immediate concern is the mounting cost of servicing Uganda's debt. As of December 2023, interest payments on loans consumed a substantial portion of the budget. According to the Bank of Uganda, 32% of every UGX100 collected in taxes goes towards servicing this debt, and projections suggest that external debt servicing could account for 35% of GDP in 2024/2025.
Several factors are contributing to Uganda’s rising debt burden. These include the shift in government spending towards infrastructure projects and the impact of the COVID-19 pandemic, which forced the government to borrow extensively to support its economy during the crisis.
In 2018/2019, prior to the pandemic, Uganda's public debt stood at 34.6% of GDP then surged to 50.6% in 2021/22, and projections for 2023/2024 suggest it will surpass 53%, well above the International Monetary Fund’s (IMF) recommended threshold of 50% for low-income countries.
The Uganda Debt Network (UDN), a civil society organization focused on promoting sound public debt management, has raised alarms over the growing debt crisis. "The government’s reliance on expensive non-concessional loans, combined with declining aid and revenue shortfalls, means that Uganda's fiscal position is becoming more precarious by the day," it notes.
“As the government diverts more and more resources to debt servicing, vital sectors like education, health, and infrastructure are being starved of funds. This is leading to a slowdown in development progress, as the country struggles to balance debt servicing and development needs."
Dr. Fred Muhumuza, an economist at Makerere University and a leading expert on public finance, has been vocal about the need for urgent reforms in Uganda's debt management practices.
Dr. Muhumuza argues that the country's current debt trajectory is unsustainable, noting, "Uganda cannot continue to borrow at this rate without severely compromising future growth and development. The government must focus on reducing borrowing and improving revenue generation to break this cycle."
He has also highlighted the importance of tax administration reforms as a key solution. "The Ugandan tax system is one of the least efficient in the region. There is a need for comprehensive tax reforms that widen the tax base and increase compliance," he explained.
Dr. Muhumuza further emphasized that the government must prioritize investments that provide the highest returns, adding, "Borrowing for infrastructure projects that do not generate sufficient economic returns is a dangerous path. There must be a clear assessment of the economic impact of each borrowing decision."
In addition to the above-mentioned factors, Uganda has also faced a sharp reduction in aid and development support following the controversial passage of the Anti-Homosexuality Act in 2023. Foreign aid fell from UGX2.781 trillion to just UGX28.94 billion, forcing the government to borrow even more to plug the gap.
The experts warn that the growing debt burden has several negative implications for Uganda’s economy and social services. The country faces the risk of a sovereign default if current trends are not addressed.
High debt levels stifle economic growth, discourage both public and private investment, and divert critical resources away from essential services. This includes vital sectors such as infrastructure, labor productivity, human capital, and public health, which are crucial for long-term development.
A sluggish tax revenue administration system only exacerbates the problem, exposing the government to greater vulnerability in servicing its debts. If domestic revenues continue to stagnate, Uganda could find itself in an even worse fiscal position, with debt levels exceeding the current 52% of GDP, the experts warn.
That’s why Dr. Muhumuza stresses the importance of managing domestic debt carefully. "While foreign debt is a significant issue, domestic debt has also become a critical concern, especially with high interest rates. The government must balance its domestic borrowing to avoid crowding out private sector investment and ensure long-term financial stability," he says.
President Yoweri Kaguta Museveni has extended a call to global investors, particularly those in the United Arab Emirates (UAE), to seize lucrative opportunities in Uganda by investing in the country.
A press release said while addressing the 4th edition of Abu Dhabi Sustainability Week (ADSW) 2025 at the Abu Dhabi National Exhibition Centre (ADNEC), Museveni emphasized Uganda’s untapped potential in agriculture, minerals, and value-added production as pivotal sectors for investment.
“Uganda offers an Internal Rate of Return (IRR) of 14.1%, making it a prime destination for profitable investments,” Museveni stated. “With the right partners, we aim to accelerate our transition from a lower-middle-income country to a high-middle-income economy and, eventually, to a first-world country.”
Museveni outlined key areas ripe for value addition, including: • Agriculture: Coffee, bananas, fruits, cassava, maize, tea, dairy, beef, poultry, and fish. • Minerals: Rare earth elements, gold, and iron ore. • Forestry: Timber and forest-based products.
He noted that these resources remain underexploited and could drive Uganda’s economic transformation if adequately tapped. The President emphasized that with Africa’s population projected to reach 2.5 billion by 2050, investors have access to a vast and growing market.
President Museveni assured investors of Uganda’s market potential, supported by a population of 46 million and bolstered by the East African Community (EAC), which comprises 300 million consumers. “Already, Uganda has a surplus in various products. Our strategic location and regional partnerships ensure that any investment here benefits from a vast and integrated market,” he added.
Additionally, Uganda’s progressive policies have laid the groundwork for long-term growth. For instance, the country’s recent reclassification as a lower-middle-income economy underscores its economic strides, with GDP growth averaging 6% annually.
The Abu Dhabi Sustainability Week, themed “The Nexus of Next: Supercharging Sustainable Progress,” serves as a global platform to address pressing sustainability challenges. Museveni’s address, titled “Transforming Uganda in a Rising East Africa,” resonated with the event’s focus on fostering inclusive economic, social, and environmental progress.
Museveni commended UAE President Sheikh Zayed bin Sultan Al Nahyan for his visionary leadership and hospitality, emphasizing the importance of partnerships in achieving shared prosperity. He reiterated that Africa’s growth trajectory is now unstoppable, provided leaders avoid ideological and strategic missteps that could generate conflict.
“With the adoption of correct policies and by avoiding unnecessary philosophical and strategic mistakes, Africa’s rise to global affluence is inevitable,” Museveni said. He highlighted Uganda’s focus on win-win solutions and urged international investors to partner with Africa in addressing global challenges.
Key Ugandan officials accompanying the President included Attorney General Kiryowa Kiwanuka, Finance Permanent Secretary Ramadhan Goobi, Health Permanent Secretary Dr. Diana Atwine, and Foreign Affairs Permanent Secretary Vincent Bagiire. Their presence underscored Uganda’s commitment to fostering robust partnerships and advancing sustainable development goals.
President Museveni’s invitation to investors aligns with Uganda’s broader vision to leverage its resources for accelerated growth. With its strategic location, abundant resources, and investor-friendly policies, Uganda is positioning itself as a hub for regional and global trade. For investors seeking high returns and sustainable opportunities, Uganda stands as a gateway to Africa’s prosperous future.
President Museveni has been in Abu Dhabi for the Sustainability Week 2025. This is an abridged version of his speech at the event.
Uganda has got a population of 46 million People and is part of the East African Community with a combined population of 300 million People, all of whom are part of the CFTA (Continental Free Trade Area) of Africa, with a combined population of 1.4 bn People. Until 1900, Uganda was part of Africa that had had limited direct linkages with outsiders.
In the 70 years the British were in Uganda, typical of the Colonies, they created a small enclave economy of the 3Cs and 3Ts. Enclave economy, meant a small island of money economy, surrounded by a sea of under-development and moneylessness. The 3Cs were: coffee, cotton and copper and the 3Ts were: tea, tobacco and tourism. By 1962, Independence time, only 9% of the homesteads were in this small money economy.
Owing to the wrong politics of the political actors, Uganda soon entered a period of crisis. In 1971, an illiterate Colonial Sergeant, Idi Amin, came into power. He ruined the small enclave economy by making many mistakes including the expulsion of our immigrant Asian Community of 80,000 that had been a part of the entrepreneurial class.
By 1986, only Coffee of the 3Cs was surviving and only tobacco of the 3Ts was still kicking. Since that time, we have gone through 5 phases as follows: 1. Bring back part of the small ‘Island’ of the 3Cs and 3Ts; 2. Expand the ‘Island’ – more coffee, more tea, more tourism, etc. 3. Diversify the economy by commercializing new products such as fruits, bananas, fish, dairy products, beef, sugar, cassava, leather, wood-products, etc. 4. Add value to some of the raw-materials - such as textiles, dairy products, sugar - to produce finished products. 5. Enter the knowledge economy by producing products of the intellect such as auto-mobiles, vaccines, etc.
However, to go into the five phases, apart from peace, you need infrastructure and a skilled and healthy population. We have, therefore, invested in electricity generation, roads constructions, building schools and health centres. These modest efforts, have seen the economy grow from a miserable USD 4bn in 1986 to now USD 55bn by the foreign exchange rate method or USD 168.5bn by the PPP method. We are not satisfied with this.
Much of this USD 55bn is raw-materials. By merely adding value to a spectrum of these raw-materials – coffee, cereals, minerals, etc - we intend to grow the economy to USD 500bn in the coming few years. We, therefore, invite investors from the World to help us do this rapid transformation of our economy and society as they also benefit because the IRR in Uganda is 14.1%.
Uganda is now classified as a lower middle-income Country. It will, however, rapidly grow into a high middle- income Country and, eventually, into a first World Country. To achieve these goals, as already stated, we need to add value to the large spectrum of our agricultural raw-materials (coffee, bananas, fruits, cotton, oil seeds, cassava, maize, tea, dairy, beef, poultry products, fish, forest products, sugar, etc) and mineral raw-materials (gold, iron-ore, phosphates, lithium, uranium, petroleum, gas, etc).
The efforts of value addition to raw-materials are part of sector two of the economy- manufacturing. The other sectors are: commercial agriculture that will generate some of the required raw-materials; services (tourism, hospitality, transport, professional services, etc); and ICT.
I salute our African brothers and sisters in East Africa and in the whole continent. With clear vision, we agreed that when you produce a good or a service, you need to sell. The more you sell, the better for our prosperity. The internal market of Uganda of 46 million people, is not enough to support large scale sustained production of goods and services, especially when their purchasing power is still low. Already, Uganda has surplus of many products: maize, milk, beef, bananas, steel products, cement, tubes and tyres, textiles, cassava products, etc.
How would the Ugandan economy grow if we did not have the East African market, the COMESA market and the wider African market? I would like, therefore, to assure investors from outside Africa, that the Africans, have already laid down a lucrative market. When you invest in Uganda or any of the brother African Countries, you have the assurance of this huge and growing market.
The population of Africa will be 2.5 billion people in the next 25 years. The population of Uganda, will be 106 million People by that time. The growth of Africa is now unstoppable. Future leadership in prosperity belongs to Africa without a doubt as long as we are acting right.
The Auditor General’s report for the year ending 2024 has unveiled alarming financial irregularities in the management of pension and gratuity benefits, revealing over UGX 20 billion in overpayments to beneficiaries.
The findings, submitted to Parliament by Auditor General Edward Akol on January 15, underscore serious lapses in the oversight and management of public funds.
According to the report, 1,502 pensioners were overpaid gratuity benefits totalling UGX11.4 billion, while 2,193 pensioners received excess pension benefits amounting to about UGX 9 billion.
These overpayments occurred across 19 ministries, departments, and agencies (MDAs) and 115 local governments (LGs) for gratuity, and 23 MDAs and 104 Local Governments for pensions.
“I noted that 1,502 pensioners/beneficiaries were overpaid gratuity benefits of UGX 11.393 billion. These overpayments were in 19 MDAs and 115 LGs. This amount is recoverable. I noted that 2,193 pensioners/beneficiaries were overpaid pension benefits of UGX 8.98 billion in 23 MDAs and 104 LGs. This amount is also recoverable,” the report says in part.
The special audit, commissioned by Finance Minister Matia Kasaija, aimed at assessing the effectiveness of pension and gratuity management processes, validate 72,285 pensioners on the government payroll, and recommend corrective measures.
Covering the financial years from 2019/20 to 2023/24, the audit validated 72,206 pensioners, of whom 61,199 (84.8%) were fully verified, 756 (1%) were not verified, and 10,251 (14.2%) failed to show up for validation.
The audit also revealed that 4,538 individuals had not accessed the pension payroll by June 2024, with 4,057 verified and included in the pension estimates, while 481 remained unverified.
The AG recalculated the pension and gratuity estimates for the financial year 2024/25 to UGX974.6 billion.
This figure includes; Pension and gratuity arrears (UGX 74.2 billion); Non-traditional pensioners’ benefits (UGX 33.7 billion) and Expected retirees for the fiscal year 2024/25.
To meet these obligations, the Government will require an additional UGX 43 billion beyond the total revised budget of UGX 931 billion for the 2023/24 financial year.
The Auditor General’s investigation also uncovered irregularities in the allocation of supplementary funding for pensions and gratuities.
A total of UGX 382 billion was disbursed to 185 entities, including eight MDAs (UGX 16 billion) and 177 LGs (UGX 366 billion), without formal requests from accounting officers as mandated by Regulation 18 (2) of the Public Finance Management Regulations (PFMR) 2016.
“Although the Ministry of Finance, Planning, and Economic Development (MoFPED) provided the schedules of requests for the supplementary budget, they were not reconciled with the actual amounts received by the respective MDAs and LGs,” the report noted.
The Auditor General called for stricter compliance with financial management regulations, advising the Permanent Secretary/Secretary to the Treasury to ensure that all supplementary funding requests are formally submitted by accounting officers. This measure aims to enhance accountability and internal controls over public funds.
It is not clear what measures Parliament would recommend to recover the UGX20 billion. However, the report will be forwarded to the Parliament Accounts Committee for investigations to find out who should be held accountable.
Uganda’s Minister of Agriculture, Animal Industry, and Fisheries, Hon. Frank Tumwebaze, has called for swift and decisive action to transform Africa’s agricultural sector from its current state of underdevelopment to a global leader in food production.
Speaking at the opening session of agriculture ministers during the African Union (AU) Extraordinary Summit on the Comprehensive Africa Agriculture Development Programme (CAADP) Strategy and Action Plan 2026–2035, Tumwebaze emphasized the importance of moving from planning to execution under the new Kampala CAADP Agenda.