The government through the ministry of Finance has allocated Shs 814.2 billion to science, technology and innovation (STI) in the 2025/26 financial year budget with an aim to drive industrialisation, job creation and high-tech exports.
During the national budget speech delivered by Finance Minister Matia Kasaija on June 12 at Kololo Independence Grounds, the government emphasized that STI including ICT and the creative industry has been identified as a key driver in Uganda’s journey toward becoming a knowledge-based economy.
“STI provides an important avenue for the country to develop high-tech exports and add new sources of growth and jobs,” Kasaija said.
Among the notable achievements in the previous fiscal year was the completion and operationalization of the Kiira vehicle plant in Jinja. The plant now produces both electric and diesel buses, with 41 buses already assembled 29 of which are electric and can travel up to 500 kilometers on a full charge. The plant has signed a letter of intent to export 3,700 electric buses to West Africa and is projected to create over 14,000 jobs both directly and indirectly.
The government has also advanced its pharmaceutical innovation agenda, particularly in vaccine development and drug manufacturing. Dei BioPharma in Matugga, which has received a cumulative public investment of Shs 724 billion, has begun producing a range of generic medicines including tablets, powders, and antifungal drugs. The facility is now licensed by the National Drug Authority. Efforts are underway to develop vaccines for diseases such as Crimean-Congo haemorrhagic fever and Rift Valley fever. Additionally, the Alfasan vaccine plant has been accredited to manufacture anti-tick vaccines.
Research and innovation at public universities have received increased support. At Makerere University, scientists developed a PCR testing kit that has been used in over 2 million COVID-19 tests at half the cost of imported alternatives, saving the country an estimated USD 37 million. Gulu University also contributed by developing rapid test kits for detecting cassava and sweet potato diseases.
The government has further invested in agro-industrial innovation, including the development of a coffee processing plant in Ntungamo. This plant will soon begin producing instant, roast, and ground coffee for local consumption and export. The initiative is part of efforts to promote value addition in Uganda’s leading export commodity.
In the 2025/26 fiscal year, the STI budget will prioritize scaling up vaccine research and production, supporting electric vehicle manufacturing, and advancing the development of industrial and digital technologies. Other key areas include investments in diagnostics, therapeutics, and ICT solutions, as well as the commercialization of scientific innovations and support for the creative industries. The government will also strengthen partnerships between academia and industry to ensure that research outcomes are translated into market-ready products aligned with national priorities.
The government aims to accelerate economic growth through industrialisation, commercial agriculture, digital transformation, and value addition.
Minister Kasaija noted that the STI agenda aligns with Uganda’s Vision 2040 and the upcoming Fourth National Development Plan (NDP IV), which places knowledge-driven growth at its center.
The government maintains that science-led development will be critical in creating jobs, achieving self-sufficiency in health and food systems, and building globally competitive industries.
