KAMPALA, Jan 30 – Uganda has lowered its projected economic growth for the financial year starting in July to between 6.5% and 7%, sharply down from a previous estimate of 10.4%, according to the finance ministry.
The revised forecast was published late on Thursday in a post on the social media platform X. The ministry did not provide an explanation for the downgrade.
In December, Uganda’s budget documents had projected growth of 10.4%, largely underpinned by expectations that the country would begin commercial oil production during the period.
Uganda plans to start pumping crude from reserves in its western oil fields, operated by France’s TotalEnergies and China’s CNOOC, marking a major milestone for the East African nation after years of delays in developing its petroleum sector.
The start of oil output is expected to transform Uganda’s economic outlook over the medium term, boosting exports, government revenues and foreign investment. However, the latest forecast suggests a more cautious near-term assessment of growth dynamics as the country approaches first oil.
