President Museveni has declared that Uganda’s economic progress over the past few years has propelled the country into middle-income status, a trend he described as irreversible.
The president delivered his annual State of the Nation Address at Kololo Ceremonial Grounds, attended by various dignitaries. However, many members of the opposition chose to stay away.
Dressed in his trademark white shirt and navy blue trousers, Museveni stated, “Our economy remains strong and resilient.”
“Uganda is moving forward. It is now irreversibly a middle income country with GDP per capita of $1,263. It is No.7 among the fastest-growing countries in the whole world, according to the International Monetary Fund [IMF],” he said.
“It is growing at 6.3 per cent per annum. It is projected to be 7 per cent next year and will grow in double digits after oil.”
He highlighted broad-based, inclusive, and pro-poor growth over the past four years, crediting programs like the Parish Development Model (PDM), now in its third year, for advancing poverty eradication.
Domestic revenue collection is projected to hit 31.9 trillion shillings by June 2025, with a target of 37.4 trillion shillings for the next financial year. To achieve this, Museveni pledged to combat corruption at the Uganda Revenue Authority, minimize tax evasion via EFRIS, tackle smuggling, and support local governments in revenue collection.
Museveni outlined four key areas to drive Uganda toward a $500-billion economy: agro-industrialization; tourism and travel; mineral beneficiation and manufacturing; and science, technology, and innovation, including ICT and digital transformation.
He stressed that Uganda’s economy is now “more diversified and sophisticated,” producing a wider range of products. He condemned the export of unprocessed minerals, stating, “Africa’s biggest problem is the exportation of raw materials,” and reaffirmed the government’s ban on such exports to retain jobs and revenue.
Uganda’s milk production, he said, surged to 5.4 billion liters in 2024 from 2.5 billion in 2017/2018, with exports like powdered milk reaching markets such as Algeria.
Education and Infrastructure
On education, Museveni reported 12,550 government-aided primary schools, 1,416 secondary schools, 189 technical and vocational schools, and 12 degree-awarding tertiary institutions nationwide. He commended Uganda’s scientists for innovations like electric car manufacturing by Kiira Motors Corporation, pharmaceutical advancements, and agricultural research, nurturing a “nascent knowledge economy.”
Infrastructure development remains a priority, with Museveni listing roads slated for tarmacking and strategic bridges to be constructed in the 2025/2026 financial year. He also mentioned ongoing negotiations for additional funding to expand road projects.
Security
Museveni described Uganda’s security as “robust” and “generally calm,” despite challenges from traditional and non-traditional threats like terrorism, which he said have been thwarted. He noted that only 33% of Ugandans still practice subsistence agriculture, with government efforts pushing households into the money economy. Life expectancy has improved, and mass-line programs were hailed as effective for socio-economic transformation.
The president urged Ugandans to embrace the ongoing ID registration and renewal exercise launched last month to support development efforts.
Combating Corruption
Museveni reiterated the government’s commitment to fighting corruption, a topic he said would feature prominently in his upcoming Budget Speech next Thursday, June 12, alongside discussions on the East African federation.
He praised Parliament for passing bills like the UPDF Bill, which he said stabilized the country by ensuring military matters are handled appropriately, congratulating Speaker Anita Among for her leadership.
Earlier, the president had launched the 4th National Development Plan (NDPIV) that will guide Uganda’s economic priorities in the next five years.
 Speaker Anita Among adjourned the House until June 12, when the national budget will be read. She pledged Parliament’s focus on government business and promised a later debate on the president’s address.
