According to the IMF, Uganda’s economy recorded broad-based growth of 6.3% in the 2024/25 financial year, driven by strong performance across multiple sectors. Inflation remained stable and below the 5% medium-term target of the Bank of Uganda.
The IMF said gross international reserves strengthened during the year, supported by higher exports, increased capital inflows, and stepped-up foreign exchange purchases by the central bank.
However, the Fund noted that Uganda’s fiscal position deteriorated significantly in FY2024/25 due to higher current spending, including several one-off expenditures. Despite this, the macroeconomic outlook remains favourable, with further improvement expected once oil production begins in FY2026/27.
The IMF cautioned, however, that the outlook is subject to downside risks, including global trade and financial uncertainties, as well as potential fiscal policy slippages.
The IMF team concluded that Uganda’s capacity to repay the Fund remains adequate, even under a combination of external and domestic shocks.
The Fund expressed appreciation to the Ugandan authorities for their “productive engagement and hospitality” during the mission. The IMF Executive Board is expected to consider Uganda’s post-financing assessment in January 2026.
–IMF/ChannelAfrica–
