KAMPALA, Mar 25 – Uganda’s economy expanded by 8.5% in the quarter ended December, accelerating from 5.4% recorded in the same period a year earlier, according to the finance ministry.
The growth was driven by strong consumer demand and increased activity in construction and other key sectors, reflecting improving domestic economic momentum.
A major contributor to the construction surge is the development of a $5 billion oil export pipeline, which is now about 80% complete. The project is expected to play a central role in unlocking Uganda’s crude oil exports to international markets.
The government projects that oil exports will generate approximately 2.2 trillion Ugandan shillings ($587 million) in revenue for the 2026–2027 financial year.
The pipeline is a critical component of Uganda’s long-term energy strategy, positioning the country to transition into an oil-exporting economy while supporting infrastructure development and job creation.
Stronger economic performance, combined with anticipated oil revenues, is expected to enhance fiscal capacity and support broader economic growth in the coming years.
