The Government of Uganda has set an ambitious target of expanding the country’s Gross Domestic Product (GDP) from USD 50 billion in FY 2022/23 to USD 500 billion by 2040.
This tenfold increase is expected to be driven by key sectors such as agriculture, tourism, minerals, oil and gas, and science and technology.
The announcement was made by Moses Kaggwa, Director of Economic Affairs at the Ministry of Finance, Planning, and Economic Development, during a retreat for Member CEOs of the Uganda Bankers’ Association.
Kaggwa emphasized that achieving this ambitious goal will require a shift in economic programming, innovative financing mechanisms, and stronger coordination between the public and private sectors. He stressed the critical role of the financial sector in shaping the economic transformation Uganda envisions.
Strategic Sectors to Drive Uganda’s Economic Growth
According to Kaggwa, the economic expansion agenda is anchored on four key pillars:
Agro-Industry (Annual Export Target: USD 20 Billion)
Agriculture remains the backbone of Uganda’s economy, contributing approximately 24% to GDP and employing over 70% of the population. However, to fully harness its potential, both the public and private sectors must play distinct roles:
To achieve this, the government should promote agricultural commercialization, develop structured value chains and expand irrigation infrastructure.
On the other hand, the Private Sector’s role is to invest in agro-processing and value addition, develop contract farming models, and leverage AgriTech innovations to improve efficiency.
Tourism Development (Annual Export Target: USD 50 Billion)
Tourism is a major foreign exchange earner, contributing over 7.7% of GDP and 8% of total employment. Uganda, known as the “Pearl of Africa,” has an untapped potential in high-value tourism. To maximize this sector: the government shall have to Market Uganda as a high-value tourism destination, upgrade tourism infrastructure, including roads and airports and enhance security and conservation efforts. The private sector shall be tasked with investing in luxury hospitality and tourism services, developing experience-driven travel offerings (eco-tourism, cultural tourism) and diversifying tourism products beyond wildlife, including conference and medical tourism.
Minerals, Oil & Gas (Annual Export Target: USD 25 Billion)
With the discovery of over 6.5 billion barrels of oil reserves and significant mineral deposits such as gold, cobalt, and rare earth minerals, Uganda has the potential to become a major player in extractive industries.
To achieve this, the government shall have to conduct geological surveys and exploration, strengthen mining laws and regulatory frameworks, plus securing strategic resource agreements. The private sector shall on the other hand be tasked with developing, extraction, refining, and value-addition infrastructure, plus investing in local capacity building and technology transfer.
Science, Technology, and Innovation (Knowledge Economy & R&D)
To sustain long-term economic growth, Uganda must transition into a knowledge-based economy driven by science and technology. Currently, Uganda invests only 0.4% of GDP in R&D, far below the global average of 2.2%.
Here the government shall have to expand digital infrastructure and internet penetration, provide funding for research and innovation and to foster innovation ecosystems and incubators, while the private sector shall have to invest in technology hubs and high-tech manufacturing, commercialize research and innovation, plus supporting digital financial inclusion and fintech growth.
Aligning Uganda’s Economic Agenda with the Financial Sector
Kaggwa noted that achieving Uganda’s economic vision will require well-structured financing mechanisms that align with investment cycles and risk profiles. The upcoming National Development Plan (NDP) IV (2026-2030) is designed to synchronize public and private sector investments for sustainable economic expansion.
Uganda’s vision of a USD 500 billion economy by 2040 is bold yet achievable, provided the country leverages its agricultural potential, tourism assets, mineral wealth, and technological advancements.
The success of this transformation will however depend on strong public-private partnerships, financial sector alignment, and a commitment to economic diversification.
With the right policies and investments, Uganda is well on its way to becoming a major economic powerhouse in Africa.