The Government of Uganda is set to invest $700 million into Uganda Airlines over the next few years in order to expand the carrier’s route network and reinforcing its role in boosting economic ties with global markets.
The announcement was made by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury (PSST) at the Ministry of Finance, while addressing the UK-Uganda Trade and Investment Forum in London.
Ggoobi described the recent launch of direct flights between Entebbe and London Heathrow by Uganda Airlines as a “game-changer” that will reshape the economic and cultural landscape between the two countries.
“This is more than just a new flight route—it’s a strategic link for business, tourism, and diplomacy. It dismantles the walls of misinformation that have kept some UK investors and tourists away from Uganda due to outdated or false narratives,” said Ggoobi.
He emphasized Uganda’s commitment to leveraging strategic partnerships, noting that the new flight connection would enhance trade flows and facilitate investor engagement in key sectors such as financial services, investment banking, insurance, and infrastructure development, as part of Uganda’s roadmap to becoming a $500 billion economy by 2040.
Ggoobi reaffirmed the country’s strong economic performance, projecting a 6.4% GDP growth rate for the Financial Year ending June 2025, and over 7% growth in the medium term.
“New data confirms that our growth is inclusive, transformative, and pro-poor,” he said.
He cited the latest Uganda National Household Survey released by the Uganda Bureau of Statistics (UBOS), which shows that the percentage of Ugandans living below the national poverty line has dropped from 20% to 16% in just four years, outperforming the 2025 national target of 18.5%. Income inequality has also declined, with the Gini coefficient falling from 0.41 in 2020 to 0.38.
Ggoobi highlighted Uganda as one of Africa’s most attractive investment destinations, boasting a 14% average return on investment and 30% return on equity for listed companies. He noted that the country’s liberalised economy, stable macroeconomic framework, and pro-private sector policies are key pillars supporting investor confidence.
“We offer a conducive environment with both tax and non-tax incentives, strong legal and regulatory frameworks, and protection from non-commercial risks,” he said.
He added that Uganda provides tariff- and quota-free access to major regional markets through the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), and the African Continental Free Trade Area (AfCFTA)—tapping into a combined population of over 1 billion people and a market GDP of $3 trillion.
Ggoobi also extended a warm invitation to UK investors and tourists: “Come and experience Africa’s best-ranked investment destination. Fly direct to Uganda—a country with low macroeconomic risk, high returns, and a renewed tenfold growth strategy.”
