Uganda: Museveni Predicts Uganda's Economy Will Hit $80 Billion Next Year

KAMPALA -- President Museveni has projected that Uganda's economy will grow to $80 billion in the next financial year, presenting the forecast as evidence of the country's continued economic transformation and urging leaders to embrace accountability, productivity and wealth creation.

Delivering his State of the Nation Address at Kololo Ceremonial Grounds on Thursday, Museveni said the economy is expected to grow by 6.4 percent during the current financial year before accelerating to 10 percent growth in the 2026/27 financial year.

"This financial year, the economy is projected to grow by 6.4% and the next financial year the GDP will grow by 10%, pushing the size of the economy to $80 billion," Museveni said.

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The President used the address to defend the National Resistance Movement's economic record, arguing that Uganda has undergone profound transformation since 1986.

"Our GDP rose from $3.9 billion in 1986 to now $69.3 billion by the forex exchange method or to USD 197.1 billion by the PPP method," he said.

Museveni attributed the growth to progress in what he described as the four strategic sectors capable of driving national prosperity: commercial agriculture, manufacturing, services and information and communications technology.

The speech was dominated by his "No More Sleep" campaign message, which he expanded into a broader call for an end to corruption, complacency, diversionary politics and poor performance within both government and society.

"It is 'no more sleep' and to clarify the message, I should add: no more corruption (obusi kuzi); no more Kukongola (leaning on your hoe when others are digging); no more Kugumaaza, Kuhuzya (diverting somebody's attention from the real target to a wrong target); no more kutuhenda (overburden us when we work and you are just sitting down); and no more politeness to non-performers," he said.

A significant portion of the President's address focused on Uganda's long-term efforts to move households from subsistence production into the money economy.

He traced these efforts back to campaigns launched in the 1960s to encourage communities, particularly in the cattle corridor, to embrace settled agriculture and commercial production.

Museveni pointed to the dairy industry as one of Uganda's most successful economic transformation stories.

"By 1986, the production of milk in Uganda was 200 million litres per annum. It is now 5.4 billion litres," he said.

According to the President, the growth in dairy production has enabled Uganda to reduce imports significantly while generating export earnings from processed dairy products.

He said the country now saves approximately $1.56 billion annually through import substitution and earns an estimated $285.4 million from dairy exports. Uganda, which once imported products such as condensed milk, butter, cheese and powdered milk, has become a regional exporter of dairy products.

Museveni highlighted Nyabushozi County as an example of the sector's transformation, revealing that the area now supplies approximately 1.15 million litres of milk daily to processing facilities and cooling centres.

He added that Uganda currently has 160 milk and milk-products factories, reflecting growing investment in agro-processing and value addition.

The President also defended government wealth-creation programmes, including the Parish Development Model (PDM), Emyooga, Operation Wealth Creation (OWC) and the National Agricultural Advisory Services (NAADS).

He said the Parish Development Model has already reached 3.7 million households and remains central to the government's strategy of integrating rural families into commercial economic activity.

"There is already Shs557 million in the parish. It has reached 3.7 million households," he said.

Museveni pledged continued support for the programme, announcing that government would continue allocating Shs100 million annually to each rural parish and Shs300 million to urban wards, alongside operational facilitation for local leaders.

Infrastructure development also featured prominently in the President's address. He highlighted ongoing investments in roads, railways, oil infrastructure and energy generation as critical pillars of future growth.

Museveni said government has improved regional connectivity through strategic road projects while continuing efforts to rehabilitate the metre-gauge railway network and advance plans for the Standard Gauge Railway.

"We are working with Kenya and Tanzania on the pipelines for crude petroleum products and for the refined products," he said.

On energy, the President noted that Uganda's electricity generation capacity has increased dramatically over the last four decades.

"We are, however, aiming at 50,000 megawatts from hydro, solar, gas, wind, nuclear and geothermal," he said.

Museveni rejected suggestions that Uganda has stagnated during his administration, arguing that key social and economic indicators demonstrate substantial progress.

According to figures cited in the address, household poverty has fallen from 56.4 percent in 1992 to 16.1 percent today, while life expectancy has risen from 43 years to 68 years.

"The infant mortality was 122 per 1,000 born alive and it is now 36 per 1,000 born alive," he said.

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The President further noted that Uganda has moved from the category of Least Developed Countries to Lower Middle-Income Country status, with GDP per capita increasing to $1,278, above the lower-middle-income threshold of $1,136.

Export growth was another area highlighted by Museveni. He revealed that Uganda's exports reached $18 billion in the 12 months ending March 2026, supported by diversification into new products over the last 15 years.

Among the products he cited were pharmaceuticals, refined gold, steel products, ICT products, ceramics, plastics and dairy products.

Looking ahead, Museveni argued that Uganda's future prosperity will depend on continued investment in productivity, industrialisation, value addition and regional market integration.

He challenged leaders at all levels to focus on implementation and ensure that government programmes translate into tangible improvements in household incomes.

"We are now set for further and faster growth and transformation," he said.

The President concluded by returning to his central theme of accountability, insisting that Uganda has established the foundations necessary for rapid development and that the next phase will require stronger leadership and performance.

"No more sleep; no more kukongola; no more corruption; no more kugumaaza; no more politeness towards non-performers," he said.