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Uganda’s tourism sector saw a strong rebound in 2023 with 1.27 million international arrivals, reflecting a significant recovery from the pandemic. Simultaneously, internet penetration reached 55%, showcasing Uganda’s rapid digital growth and expanding connectivity. These developments highlight the country’s ongoing economic progress in key sectors.

Uganda has seen significant improvements in economic and social development, with per capita income reaching USD 1,146 in FY2023/24, surpassing the lower-middle-income threshold. Poverty has declined to 20.3%, and life expectancy has risen to 64 years. As outlined in the 2025/2026 budget strategy, key advancements in education, healthcare, and agriculture reflect a more equitable distribution of wealth and improved well-being. However, challenges in agro-processing capacity and social protection coverage remain.

In July 2024, Uganda’s Shilling appreciated against the US Dollar, bucking the regional trend of currency depreciation across the East African Community. Meanwhile, Uganda’s fiscal performance outpaced projections, with revenue surpluses and restrained spending resulting in lower borrowing needs. As Tanzania, Kenya, Rwanda, and Burundi faced currency pressures, Uganda’s disciplined approach highlights a shift in regional fiscal dynamics.

In June 2024, Uganda’s export earnings dropped by 23.6%, falling to USD 718.60 million, largely due to a decline in mineral product exports. However, coffee exports surged by 27.5%, driven by higher volumes and rising international prices. Key markets like Italy, Germany, and India played a major role in sustaining Uganda’s export growth, especially in the agricultural sector.

In June 2024, Uganda’s private sector borrowing surged despite increasing business collapses, with lending institutions extending Shs 1,360.87 billion. The trade sector led the way, securing the largest share of loans, followed by household and real estate credit, indicating sustained demand for financial support amid challenging economic conditions.

Uganda’s entrepreneurial landscape is grappling with a rising tide of business failures, as companies collapse under the weight of crippling debt and poor management. The Uganda Registration Services Bureau (URSB) cites inadequate skills, financial illiteracy, and skyrocketing interest rates as key factors contributing to the downfall of many businesses. With more businesses appealing for government bailouts, urgent measures like corporate rescue training are being introduced to prevent further collapses.

Uganda’s export earnings fell to USD 718.60 million in June 2024, a 23.6% decline from the previous month, largely driven by a sharp drop in mineral exports. However, coffee exports surged by 27.5%, reaching USD 162.36 million, supported by higher volumes and international prices. Asia and the EAC emerged as the biggest destinations for Uganda’s trade, while imports decreased by 6.5% during the same period.

In July 2024, Uganda’s government securities market witnessed significant movements, with bond yields showing mixed trends and treasury bill rates generally declining. The 15-year bond yield dropped to 15.80%, while private sector credit grew by 1.3%, indicating a dynamic financial landscape.

The Ministry of Finance’s latest report reveals a slight increase in the cost of living, with annual headline inflation rising to 4.0% in July 2024. The uptick is driven by higher prices in core sectors such as transport, accommodation, and food crops, despite a decline in energy costs. This signals a mixed economic landscape as Uganda navigates fluctuating market conditions.

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