Uganda’s Growth Story Unfolds as Diplomacy Delivers Economic Gains

Uganda has launched a bold economic agenda aimed at expanding the size of its economy from USD 50 billion in FY 2022/23 to USD 500 billion by 2040. Central to this ambition is a robust investment strategy that positions Uganda as a premier destination for global capital.

Speaking at the Pearl of Africa Trade Expo in Malaysia, Uganda’s Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija, highlighted the country’s stable macroeconomic environment, fully liberalised economy, and resilient currency as key drivers of investor confidence. He noted that the private sector—accounting for nearly 80% of GDP—is fueling growing demand for intermediate goods and services, especially within the manufacturing sector.

“We offer affordable power tariffs for large industries, a secure and peaceful environment, and a strong policy framework that enhances export competitiveness,” said Minister Kasaija. “Foreign Direct Investment flows have risen steadily—from USD 1.2 billion in 2020 to USD 3.0 billion in 2023.”

The Uganda High Commission in Malaysia organised the Trade Expo to unlock trade and investment opportunities within the ASEAN bloc, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The Expo, now recognised as the first East African Community (EAC) Expo in ASEAN, reflects Uganda’s renewed focus on economic and commercial diplomacy.

“Malaysia is well placed to support Uganda’s transition from low-value to high-value exports,” Kasaija remarked, encouraging investment in key sectors such as Agro-industrialisation, Tourism Development, Mineral-Based Industries, including Oil & Gas, and Science, Technology, and Innovation, including ICT and the Creative Economy.

According to the IMF, Uganda’s economy is among the fastest-growing globally, with real GDP growth projected at 7.5% in 2025. The Government’s overarching goal is to fully monetise the economy, enhance self-sufficiency, and drive structural transformation.

As a member of the East African Community (EAC), Common Market for East and Southern Africa (COMESA), and the African Continental Free Trade Area (AfCFTA), Uganda benefits from preferential access to a combined market of over 1.5 billion people and a GDP exceeding USD 3 trillion.

Kasaija also pointed to increasing returns on investment in Uganda, which surpassed 14% in 2022, and noted the diversification of Uganda’s export basket over the past 15 years, with 31 new products—many of them manufactured goods—added. These include concentrated milk, hair products, butter, casein, and paper labels.

Addressing the same forum, Hon. Ruth Nankabirwa, Minister of Energy and Mineral Development, emphasised the untapped potential in Uganda’s petroleum and energy sectors.

“Only 40% of Uganda’s petroleum resources have been explored,” she said. “There are significant opportunities in electricity generation, transmission, and distribution to meet regional demand.”

She highlighted ongoing geological and airborne geophysical surveys across the country, which are generating critical data to support mineral and energy development.

“We are ready to support investment in mineral exploration, mining, processing, and value addition—with a full package of investor incentives and infrastructure support,” Nankabirwa added.

On the sidelines of the Expo, Uganda’s delegation held high-level discussions with Malaysian government officials, including Hon. YB Liew Chin Tong, Malaysia’s Deputy Minister of Investment, Trade, and Industry. Malaysia expressed strong interest in bilateral partnerships, particularly in the agriculture sector.

Hon. Bright Rwamirama, Uganda’s State Minister for Agriculture, presented the country’s agricultural strengths—including 16.5 million cattle, 18.5 million goats and sheep, and 8 million pigs—alongside numerous investment-ready opportunities.

The Expo drew participation from key stakeholders across the ASEAN region, including Hon. Yang Berhormat Datuk Seri Haji Mohamad Bin Sabu, Malaysia’s Minister of Agriculture and Food Security, reflecting growing international confidence in Uganda’s investment potential.