KAMPALA, June 12 – Uganda expects its economy to grow by 7% in the next fiscal year, a slight increase from this year’s 6.3%, as officials signal that major oil production remains months away.
The government had initially projected crude production to begin by mid-2025, but repeated delays—stemming from disputes with international energy firms and sluggish infrastructure development—have pushed back the timeline. Uganda’s oil fields, near the Democratic Republic of Congo border, hold an estimated 6 billion barrels of reserves, with France’s TotalEnergies and China’s CNOOC leading development.
Finance Minister Matia Kasaija, presenting the annual budget on Thursday, announced plans to cut the fiscal deficit to 6.5% of GDP, down from 7.6%. He identified energy and mining as critical sectors for future growth, pointing to ongoing projects like an oil pipeline and refinery, along with untapped reserves of gold, iron ore, and copper.
Once oil production begins, Kasaija said, Uganda’s growth could surge to double digits—a forecast echoed by the International Monetary Fund. Meanwhile, the World Bank has resumed funding to Uganda after a nearly two-year pause over the country’s controversial anti-LGBT law.
