Uganda Registers Record $2.37 Billion Balance of Payment Surplus, Economy Shows Robust Growth
KAMPALA – Uganda’s economy has achieved a significant milestone, posting its highest Balance of Payment (BOP) surplus in 15 years, driven by record export earnings and strong foreign investment inflows. The announcement was made by the Permanent Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, during the Q3 Press Briefing on the FY 2025/26 Budget.
According to the figures released, Uganda registered a BOP surplus of USD 2.37 billion for the year ending October 2025, a dramatic reversal from a deficit of USD 683 million the previous year. Dr. Ggoobi attributed this historic performance to an “all-time high financial account surplus of USD 5.6 billion driven by good performance of FDI and portfolio inflows.”
Exports Lead the Charge
The surge is underpinned by robust export growth. The total export of goods and services reached USD 13.4 billion in the Fiscal Year 2024/25, with goods alone accounting for USD 10.6 billion. This momentum continued into the current financial year, with goods exports hitting USD 12.79 billion for the year ending November 2025.
Strong Investment and Diaspora Confidence
Foreign Direct Investment (FDI) showed remarkable strength, increasing to USD 3.5 billion for the year ending October 2025. Portfolio inflows also contributed significantly at USD 1.7 billion. Simultaneously, remittances from Ugandans abroad have seen steady growth, reaching USD 1.6 billion (Shs 5.76 trillion) in FY 2024/25, up from USD 1.1 billion in FY 2020/21.
Tourism Sector Rebounds
The tourism sector, a key foreign exchange earner, has renewed optimism. Earnings from tourism reached USD 1.7 billion in FY 2024/25.
“This impressive growth is attributed to the sustainable peace, increased competitiveness of Uganda’s tourism industry, Government investment in strategic tourism infrastructure and the impact of our Economic and Commercial Diplomacy interventions,” Dr. Ggoobi stated.
Business Sentiment Remains High
Despite the backdrop of a general election year, business executives have maintained confidence in the economy. Key indicators reflect this optimism:
· The Business Tendency Index (BTI) stood at 57.2, well above the 50-mark threshold indicating expansion.
· The Composite Indicator of Economic Activity (CIEA) rose to 183.50.
· The Purchasing Managers’ Index (PMI) increased slightly to 53.8, also above the neutral 50 mark.
Dr. Ggoobi emphasized that these indicators collectively point to a resilient and growing economy, bolstered by sound macroeconomic management and strategic government investments. The data suggests a positive trajectory for Uganda as it progresses through the fiscal year.
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