Kampala, Uganda — October 6, 2025.
Uganda’s economy continues to show remarkable strength as the Ugandan Shilling appreciated by 2.7% in the 2024/2025 financial year, according to the Bank of Uganda’s annual economic review released this week.
The appreciation, officials say, was mainly driven by strong foreign exchange inflows, recovery in tourism earnings, and increased remittances from Ugandans abroad. As a result, the country’s foreign reserves have grown to an impressive $4.3 billion, providing a healthy cushion against external shocks.
Bank of Uganda Governor Dr. Michael Nuwagaba noted that the strengthening of the shilling reflects investor confidence and a disciplined monetary policy framework.
“Uganda’s financial stability and continued inflows of investment funds show the confidence global markets have in our economic direction,” he said.
However, analysts warn that while currency appreciation is a positive sign of stability, it could make Uganda’s exports more expensive on the global market. The Central Bank is expected to continue balancing foreign exchange interventions to maintain price stability and export competitiveness.
Economists predict that if the current growth trajectory continues, Uganda may reach $5 billion in reserves by mid-2026 a milestone that would mark one of the strongest positions for the shilling in the region.
The Ministry of Finance has also attributed the gain to reduced import dependency and stronger export performance, particularly in coffee, gold, and fish products.
