Uganda seeks financing reforms to reach $500 billion economy by 2040

Uganda has called for significant reforms to its development financing system to support an ambitious goal of expanding its economy from approximately $50 billion to $500 billion by 2040. The strategy focuses on four key sectors: agro-industrialization, tourism, mineral development (including oil and gas), and science, technology, and innovation.

The government is implementing this through the Fourth National Development Plan (NDP IV), covering the 2025/2026 to 2029/2030 fiscal years. The plan requires an estimated $145.12 billion, with 69.6% expected from the public sector and 30.4% from private investment. To meet these needs, officials are advocating for stronger domestic savings, deeper capital markets, expanded public-private partnerships, and the use of blended and Islamic finance.

Economic analysts note that while growth remains strong—estimated at 6.3% to 6.4%—the effectiveness of future growth depends on where capital is directed. Current commercial-bank shilling lending rates have been reported as high as 18.9%, which may hinder long-term investments. There is a stated need to shift financing toward productive capacity, such as agro-processing, irrigation, and manufacturing technology, rather than immediate consumption.