Uganda targets 9.1% growth through oil and gas amid spending cuts

The Ugandan government has announced plans to reduce public spending by 6.2% for the 2027/2028 fiscal year, starting in July. This move aims to curb borrowing and improve fiscal discipline amid rising public debt and service costs. Despite these austerity measures, the Ministry of Finance projects economic growth to accelerate to 9.1%, up from 7.6% in the previous fiscal year, primarily driven by the commencement of commercial oil and gas production.

In a related economic development, Uganda's export revenues rose by 10.2% year-on-year in July, reaching $1.40 billion. This increase was largely fueled by a 35% surge in gold exports, which totaled $788.45 million for the month. Other contributors to the revenue growth included cocoa, flowers, and maize. The rise in export earnings is expected to provide much-needed support to the Ugandan shilling, which has recently faced downward pressure against the US dollar.