Deputy Governor of the Bank of Uganda Augustus Nuwagaba has said Uganda’s economy has undergone a “fundamental change” since 1986, recovering from collapse to achieve macroeconomic stability, strong growth and rising export earnings.
Speaking as Uganda marked National Liberation Day, Nuwagaba said the economy was virtually non-functional when the National Resistance Movement took power, with zero foreign direct investment (FDI), runaway inflation and limited productive activity.
“In 1986, the economy had virtually collapsed. There was no single direct foreign direct investment coming into Uganda,” Nuwagaba said, adding that investor confidence was non-existent at the time.
He said Uganda now attracts about $3.7 billion in foreign direct investment, reflecting improved confidence driven by stability and reforms. Inflation, which he said stood at about 180.5 per cent in the mid-1980s, has since been contained to 3.6 per cent, well below the government’s medium-term target.
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Nuwagaba said price stability has supported economic growth, with Uganda’s economy currently expanding at about 6.3 per cent annually, placing the country among the faster-growing economies globally.
He attributed the growth to multiple sectors, including agriculture, industry and services, particularly tourism. According to the deputy central bank chief, tourism earnings now stand at about $1.7 billion annually, while remittances from Ugandans working abroad contribute about $1.6 billion each year.
Nuwagaba also highlighted a sharp rise in coffee export earnings, describing it as a key milestone. He said Uganda earned $2.2 billion from coffee exports in the 2024/2025 financial year the first time the sector has surpassed the $1 billion mark.
“This has been achieved because government invested heavily in the coffee sub-sector, improved quality through extension services and strengthened supervision,” he said.
On social development, Nuwagaba pointed to expansion in higher education, noting that Uganda had only one public university in 1986.
Today, he said, the country has about 11 public universities and more than 50 private universities, significantly widening access to tertiary education.
He also cited improvements in basic education, saying millions of children who previously had no access to schooling are now enrolled, although he acknowledged persistent challenges related to quality.
From a central banking perspective, Nuwagaba said the Bank of Uganda has played a critical role in maintaining macroeconomic and financial sector stability.
He said the banking system including commercial banks, tier-two institutions and savings and credit cooperatives remains stable and well-regulated.
He added that Uganda’s currency is among the strongest in Africa, reflecting sound monetary policy and confidence in the economy.
Nuwagaba credited peace and security as the foundation of the economic gains registered over the last four decades, saying stability has been “sacrosanct” to investment, growth and financial sector development.
Uganda marks National Liberation Day annually on January 26 to commemorate the 1986 takeover by the National Resistance Army, which brought the current government to power.
