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2025/26 budget strategy to focus on four pivotal sectors

Peter 13th Sep, 2024 Economy Edward Kayiwa
2025/26 budget strategy to focus on four pivotal sectors

Prime Minister Robinah Nabbanja commended private sector and civil society partners for their feedback.


The Government is outlining an ambitious strategy for the 2025/2026 fiscal year, aimed at steering the country towards a fully monetized and formalized economy.

The ten-fold growth strategy focuses on four pivotal sectors including; Agro-Industrialization and Light Manufacturing, Tourism Development, Mineral-Based Industrial Development, as well as Science, Technology, and Innovation (STI).

Presenting the budget strategy for 2025/26 at the budget conference in Kampala on September 11, Finance Minister Matia Kasaija emphasized that these sectors are critical for Uganda's industrialization goals. According to Kasaija, they offer substantial opportunities for job creation, infrastructure development, and export growth, positioning Uganda for a new era of economic prosperity.

  • Kasaija stated that while agriculture remains the backbone of Uganda’s economy, the government is pushing for a shift from subsistence farming to a commercialized, value-added agro-industrial model.

The goal, he said, is to generate $20 billion from agriculture in the upcoming financial year, leveraging value addition in key commodities such as coffee, tea, fish, and maize. The export value of these commodities has nearly tripled over the past three years.

He also noted that the establishment of 2,263 Agro-Processing Facilities (APFs) and an increase in grain storage capacity to 1.2 million metric tons have contributed to a significant reduction in post-harvest losses. However, challenges persist, with 40% of APFs non-functional and 30% operating below capacity.

  • To address these issues, he said the government plans to improve access to affordable credit, promote micro-scale irrigation systems, and support productivity enhancements.
2025/26 budget strategy to focus on four pivotal sectors A cross section of the budget conference at Munyonyo.

Tourism, a major foreign exchange earner for Uganda, is recovering well from the pandemic. The sector has reached 82.6% of its pre-pandemic international arrivals, with a 48.5% increase in international tourism receipts.

Kasaija said:” We project $50 billion in tourism revenue for the coming year, driven by infrastructure improvements at key tourist sites, the promotion of health and education tourism, and the expansion of the domestic tourism market.”

In the mineral sector, particularly in oil and gas, he noted that significant progress is anticipated. The East African Crude Oil Pipeline (EACOP) is set to commence soon, with Uganda expected to start oil production by 2025.

Kasaija said this development is projected to stimulate growth in the petrochemical industry and lead to the establishment of a crude oil facility at Bujuuko, near Kampala.

  • “The government is also advancing in mineral value addition, with new cement and ceramics factories, gold refineries, and smelting plants enhancing Uganda's regional standing. Future plans include launching a National Mining Company and a minerals-tracking system to promote transparency and private sector participation,” he said.
  • He also stressed the importance of resource governance and infrastructure development to ensure that Uganda’s mineral wealth benefits all citizens. He revealed that the government is also committed to advancing investments in Research and Development (R&D), pathogen economy innovations, and the automobile industry. He said: “By linking research hubs with universities and industry operators, our aim is to become a knowledge-based economy, driving innovations in vaccine development and diagnostics.”

On the energy side, Kasaija said investments in infrastructure have been central to Uganda's growth strategy. The country's energy generation capacity has tripled over the past 13 years, with 57% of households now having access to electricity. The expansion of the national transmission network and the adoption of off-grid solar technologies have increased per capita electricity consumption to 218 kWh in 2023/24, more than double the figure during 2017/18.

“In transport infrastructure, the proportion of paved roads has risen to 29.4%, improving trade, tourism, and connectivity. Rail freight has also increased, significantly reducing transport times between Kampala and Mombasa. The government's strategic focus on these key sectors is expected to drive Uganda's economic growth and transformation, paving the way for a more prosperous future,” Kasaija said.

While closing the conference, Prime Minister Robinah Nabbanja commended Central and Local Goverment, Development Partners, Private Sector and Civil Society partners for actively participating in the budget consultations for FY 2025/26, adding that their feedback would be considered during the formulation of next year’s budget.

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