Government says 95 percent of the 2026/27 budget will go to agro-industrialisation, tourism development, mineral-based industrialisation, science, technology, and innovation (ATMS) to achieve the $500b economy by 2040.
The commitment was highlighted during the 5th NTV-Absa Post-Budget Dialogue, where government officials, private-sector leaders, and development experts discussed the implementation of the 2026/27 budget and Uganda’s long-term growth agenda.
Speaking at the event, Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi, said the ATMS framework is designed to double Uganda’s Gross Domestic Product every five years and increase per capita income from $1,146 to $7,000 by 2040.
‘We are shifting from exporting raw materials to higher-value goods,’ Ggoobi said, noting that agro-industrialisation has a value-addition potential of $20b, while tourism is expected to generate up to $50b annually.
Under the strategy, government plans to transform subsistence agriculture into a commercial enterprise through agro-processing and value addition, enabling farmers to participate more actively in local and international markets.
Under the plan, government expects tourism to become one of the leading foreign exchange earners through increased visitor arrivals, investment in infrastructure and stronger promotion.
Another major target is increasing annual foreign direct investment inflows from $2.9b to $50b by 2040, as well as raising the share of exports on GDP from 12 percent to 50 percent.
To support long-term growth, government plans to increase national savings from 20 percent to 40 percent of GDP, arguing that higher domestic savings will provide more capital for investment and reduce dependence on borrowing to finance development priorities.
Ggoobi stressed that achieving the ambitious growth targets will require more than investment, such as curbing wastage and misuse of public resources by enforcing stricter budget discipline and accountability across public institutions.
‘We are committed to implementing painful things like enforcing budget discipline and accountability to ensure that money is not being used for buying things that do not add value to the economy,’ he said.
The reforms include performance contracts for accounting officers, tighter expenditure controls, procurement reforms, digitisation of government processes, and stronger audit mechanisms.
Private sector leaders welcomed the direction of the budget but cautioned that implementation would determine whether the ambitious targets are achieved.
Absa executive director and chief finance officer Michael Segwaya said the country is entering a period of renewed optimism driven by anticipated oil production, continued infrastructure investment, and industrialisation efforts.
‘The emphasis on productive sectors such as agro-industrialisation, mineral-based industrial development, science, technology, and innovation aligns well with Uganda’s aspiration to expand economic opportunities, create jobs, and deepen value addition,’ he said, welcoming government’s plan to reduce domestic borrowing from about Shs11.4 trillion to Shs9 trillion, saying this could ease pressure on domestic credit markets.
Segwaya further praised the increase in funding for clearing domestic arrears from Shs200b to Shs1.4 trillion, arguing that the move would improve liquidity for businesses, especially SMEs and contractors.
‘The success of the Budget will not only be measured by the resources allocated, but by how effectively those resources are translated into improved infrastructure,’ he said.
Nation Media Group managing director Suzan Nsibirwa urged government to create a more supportive environment for small and medium enterprises, many of which continue to face difficult operating conditions.
‘They are suffering because of geopolitical occurrences the world is facing, so government should design proper measures that can make them reap from the upcoming Afcon and oil,’ she said.