Uganda must invest at least $6 billion (UGX 22.4 trillion) annually to achieve sustainable development by 2030, according to a new report released by the African Development Bank (AfDB).
The findings were unveiled during the July 29, 2026, virtual launch of the Uganda Country Focus Report 2026, co-hosted by the AfDB and the Economic Policy Research Centre (EPRC) under the theme “Mobilizing Uganda’s Development Financing at Scale in a Fragmented World.”
Uganda’s economic growth is projected to accelerate from 6.2% in 2026 to 8% in 2027, largely driven by the anticipated onset of commercial oil production beginning in late 2026. However, to bridge the substantial funding gap required to sustain this momentum, Bothwell Nyajena, AfDB’s Senior Country Economist, emphasised that Uganda must broaden its tax base, reduce exemptions, improve tax compliance, and execute essential structural reforms.
The report cautions that several downside risks could undermine economic progress. These include global trade fragmentation, severe climate variability threatening agricultural output, shrinking concessional financing, mounting debt service pressures, and persistent unemployment.
Policy Response
Addressing these challenges will require capital far exceeding traditional government funding. Participants at the launch noted that closing the development gap means a coordinated ecosystem approach, specifically strengthening local revenue generation and deepening domestic financial markets to mobilize both public and private investment.
Moses Bekabye, Technical Advisor for Economic Affairs at the Ministry of Finance, Planning and Economic Development, commended the publication for identifying actionable policy solutions. He noted that the report comes at a crucial moment as the country navigates tightening global financial conditions, declining concessional flows, and increasingly fragmented capital markets.
The report’s panel discussion was chaired by EPRC Director of Research Dr. Ibrahim Kasirye, featuring representatives from the Ministry of Finance, Bank of Uganda, National Social Security Fund (NSSF), and the EPRC.
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