Uganda is projecting significant oil revenues alongside sustained economic growth for the 2026/27 financial year the government has revealed.
The revelation was made by the Minister of State for Finance, planning and Economic Development (General Duties), Henry Musasizi, who, together with the Ministry’s technical team, appeared before Parliament’s Finance Committee today to outline the country’s economic performance and policy direction under Vote 008.
Musasizi said the economy expanded by 8.5 percent in the second quarter of the 2025/26 financial year, a significant rise from 5.4 percent recorded during the same period last year.
“This performance reflects effective economic management, supported by strong aggregate demand and sustained investments in productive sectors, particularly ICT, construction, and machinery, which are critical for long-term growth and structural transformation,” he said.
The minister highlighted macroeconomic stability as a key achievement, noting that inflation continued on a downward trend.
Inflation declined to 2.9 percent in February 2026, from 3.2 percent in January.
He attributed the decline to coordinated fiscal and monetary policies as well as improved food supply conditions.
On external trade, Musasizi said Uganda recorded a merchandise trade surplus of 147.26 million dollars in January 2026, marking a turnaround from previous deficits.
However, domestic revenue collections fell slightly below target.
Government collected Shs16.48 trillion in the second quarter against a target of Shs17.51 trillion, representing a performance of 94.09 percent.
Despite the shortfall, this reflected an 8.05 percent growth compared to the same period in the previous financial year.
The minister also provided an update on the country’s oil and gas developments, stating that progress on the East African Crude Oil Pipeline stands at 80 percent, while engineering studies for the oil refinery are ongoing.
He said the government expects to generate about Shs2.2 trillion in oil revenues in the 2026/27 financial year, with Shs1.4 trillion earmarked to support the national budget.
The policy statement comes as Uganda positions itself to achieve sustained economic growth and prepare for first oil production, which is expected to play a significant role in financing development priorities.
