Uganda Unveils Shs84 Trillion Budget to Drive Industrialisation and Economic Growth

The Minister of Finance, Henry Musasizi, has presented Uganda’s Shs84 trillion national budget for the 2026/27 financial year, outlining government priorities aimed at accelerating economic growth and transformation.

The budget is anchored on the ATMS framework—Agro-industrialisation, Tourism, Manufacturing, and Science, Technology and Innovation—which is intended to expand Uganda’s economy from approximately $50 billion to $500 billion by 2040 through increased productivity, industrialisation, and value addition.

Agro-industrialisation received the largest share of funding at Shs2.26 trillion, marking the highest allocation ever made to the agriculture sector. Government says the investment will support the transition from subsistence farming to commercial agriculture through expanded irrigation, agro-processing, improved access to quality inputs, and stronger market linkages.

According to Musasizi, investments will cover the entire agricultural value chain, including production, storage, processing, and distribution. Major irrigation projects such as the Kabuyanda Dam and other schemes across the country will be prioritised.

Other key interventions include agricultural research, commercialisation of the anti-tick vaccine, extension services, post-harvest handling, certification, agro-processing, and expanded market access.

Tourism has been allocated Shs567.32 billion to strengthen Uganda’s position as a leading tourism destination under the “Explore Uganda, The Pearl of Africa” campaign. Government plans to invest in international marketing, tourism infrastructure, hospitality standards, highway tourism centres, sanitation facilities, wildlife conservation, health tourism, and economic diplomacy.

Manufacturing will receive Shs1.03 trillion to support industrialisation and value-added production. Planned investments include strengthening industrial parks, special economic zones, agro-processing, and mineral beneficiation.

The Uganda Development Corporation will receive additional capital to support investments in sectors such as textiles, pharmaceuticals, agro-processing, and infrastructure, while presidential industrial hubs will continue equipping young people with practical skills.

Government officials noted that Uganda now hosts more than 10,000 factories, reflecting continued growth in industrial activity.

Science, Technology and Innovation has also been identified as a key driver of economic transformation, with increased investment in research, digital infrastructure, and commercialisation of locally developed technologies.

Priority areas include electric mobility, biotechnology, pharmaceuticals, space science, and digital systems. Government highlighted ongoing support for local firms involved in pharmaceutical production and health innovation.

Additional interventions under the STI agenda include the establishment of a Hi-Tech City, expansion of digital infrastructure, growth of Business Process Outsourcing services, strengthening intellectual property protection, and commercialisation of innovations such as locally manufactured vehicles, vaccines, coffee products, and banana-based industries.

Government says continued digital expansion has contributed to lower internet costs, increased mobile money usage, improved financial inclusion, and growth in e-commerce.

The 2026/27 budget reinforces Uganda’s commitment to industrialisation, innovation, and value addition as the country pursues long-term economic transformation under the ATMS framework.