Museveni Laughs Last as Uganda’s Economy Rises by 6.7% Despite Sanctions
kakooza Peter
Thursday, April 10, 2025
Uganda’s economy is moving forward strongly, with signs of steady growth and increasing investor confidence. In the first quarter of the 2024/25 financial year, the country’s Gross Domestic Product (GDP) grew by 6.7%, followed by 5.3% growth in the second quarter. These numbers are even better than the same time last year when growth stood at 5.6% and 5.8%.
This growth was announced by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, during a recent budget briefing. He said that several key sectors helped push the economy forward.
“The manufacturing sector has improved a lot, and food production has gone up, which supports local markets and creates more exports,” Ggoobi explained. He also pointed out strong activity in wholesale trade and transportation as major contributors to the progress.
Uganda’s external trade has also been doing well. In the second quarter, total exports reached $2.17 billion (UGX 8.25 trillion) — a 12.1% increase compared to the same period last year. Ggoobi said this shows Uganda is becoming more competitive in global markets and is earning more foreign exchange.
Remittances from Ugandans living abroad also went up slightly. In Q2, remittances totaled $355.6 million (UGX 1.35 trillion), up from $351.7 million the previous year. These inflows help support households and keep the economy stable.
Uganda’s currency, the Shilling, has become Africa’s best-performing currency in 2024, gaining 6.1% against top global currencies. Ggoobi credited this to good financial management and rising trust in the country’s economy.
Foreign Direct Investment (FDI) also grew by 20.6% in the second quarter of 2024/25. More foreign investors are showing interest in Uganda, which could lead to more jobs and development in the future.
By the end of March 2025, domestic revenue collection reached UGX 22.38 trillion, slightly below the government’s target of UGX 22.52 trillion. Even though the target wasn’t fully met, the results still show strong ability to fund national projects without heavy borrowing.
President Yoweri Museveni has brushed off Western pressure and sanctions, saying Uganda can succeed without foreign interference. He spoke at the Africa Regional Forum on Sustainable Development in Munyonyo, where he criticized how Western powers reacted to Uganda’s anti-homosexuality law.
“They removed us from AGOA, the World Bank cut loans, but our economy still grew by 6%,” Museveni said, pointing out that Uganda is doing fine even without some Western support.
He emphasized that Uganda's economy is strong enough to resist foreign pressure and stay on the path of growth.
The country’s progress — seen in GDP growth, a stronger currency, rising exports, steady remittances, and increasing investments — shows Uganda is on the right track. Ggoobi believes these trends reflect a “firm growth path,” and the government is working hard to keep the economy stable and build a brighter future.
