KAMPALA — Uganda’s economy continued to grow in September, with businesses recording higher output and new orders amid sustained customer demand despite global economic uncertainty, the Ministry of Finance has reported.
The Ministry’s Performance of the Economy Report for September 2026 indicates that key economic indicators remained positive, pointing to continued growth in economic activity since the beginning of the 2026/27 financial year.
“The Ugandan economy continued to exhibit resilience amidst global economic shocks and uncertainties resulting from the geopolitical tensions in the Middle East, Eastern Europe and other parts of the World,” the report said.
The Purchasing Managers’ Index (PMI), which measures business conditions in the private sector, stood at 53.0 in September, remaining above the 50-point mark that separates improvement from deterioration.
The Ministry said the reading reflected continued increases in output and new orders as businesses responded to sustained customer demand.
“The Purchasing Managers Index (PMI) was recorded at 53.0 for September 2026, which is higher than the 50-mark threshold, signalling improvement in business conditions in the private sector as firms registered continued increases in output and rising new orders arising out of sustained customer demand,” the report said.
Although the PMI declined from 55.0 in August, it remained in positive territory, indicating that private sector activity continued to expand, even as businesses faced higher energy, transport and production costs.
Economic activity and business confidence remain positive
The Composite Index of Economic Activity (CIEA), another measure of changes in economic performance, increased by 0.3% to 193.87 in August from 193.30 in July.
The increase reflected improvements in economic activity, supported by indicators including exports, imports, private sector credit and consumption taxes.
Business confidence also remained positive in September, with the Business Tendency Index (BTI) standing at 55.80, above the 50-point threshold.
The Ministry said optimism was particularly evident in financial services, agriculture, manufacturing and other services.
“Sentiments about doing business in the economy remained positive during September 2026,” the report said, attributing the confidence partly to improvements in overall demand and output.
While the index declined from 57.69 in August, its reading above 50 indicated that business operators and investors generally maintained a positive outlook.
Export earnings rise by 40.6%
Uganda’s export earnings recorded strong annual growth, increasing by 40.6% to US$1.49 billion in August 2026 from US$1.06 billion in August 2025.
The Ministry attributed the increase to higher export values and volumes for products including gold, tea, tobacco and oil re-exports.
The growth in exports provides an important source of foreign exchange and demonstrates the contribution of Uganda’s tradable goods to economic activity.
Monthly, export receipts rose by 6.4% from US$1.40 billion in July to US$1.49 billion in August.
Gold remained the leading export earner, accounting for approximately US$889 million, or about 60% of total merchandise exports in August.
The Ministry said the Government was pursuing initiatives to strengthen export performance, including promoting Ugandan products in international markets, supporting agro-processing and mineral development, and improving access to regional markets.
Private sector lending expands
Access to credit also improved, with the stock of outstanding loans to the private sector increasing by 1.9% to Shs28.62 trillion in August 2026 from Shs28.09 trillion in July.
Compared with August 2025, private sector credit grew by 19%, reflecting increased lending in shillings and foreign currency.
The growth was concentrated in sectors including trade, manufacturing, and personal and household lending.
The Ministry attributed the expansion partly to reduced caution among commercial banks as the proportion of non-performing loans declined.
During August, lenders approved Shs2.53 trillion in credit for private sector borrowers, equivalent to 73.2% of total loan applications worth Shs3.46 trillion.
Manufacturing, agriculture and trade were among the sectors receiving financing, supporting business operations and investment.
Government continues to finance its programmes
The government raised Shs2.28 trillion through three auctions of Treasury Bills and Treasury Bonds in September, helping finance the national budget and refinance maturing securities.
Demand for Treasury Bills remained strong, with the auctions receiving bids nearly three times the amount offered on average.
The Ministry’s report indicates that, despite global uncertainties, Uganda’s economy continued to record improvements in business activity, exports and private sector credit.
However, it also noted that rising energy and transport costs moderated the pace of improvement in some indicators.
The September performance points to continued economic momentum, supported by customer demand, expanding exports and lending to businesses, even as the Government and private sector navigate international economic pressures.