Uganda’s economy has continued to display strong resilience and stability despite a complex and evolving global environment marked by geopolitical tensions, commodity price swings, and tight financial conditions. The Bank of Uganda’s State of the Economy Report for September 2025 reveals that the country’s robust policy coordination and domestic demand have kept growth on track.

In its latest assessment, the central bank describes Uganda’s macroeconomic performance as remarkably stable, highlighting that the economy continues to demonstrate resilience and macroeconomic stability despite a complex and evolving global landscape.

While global growth has slowed, the report notes a moderate improvement in outlook with world output projected to grow by 3.0% in 2025 and 3.1% in 2026. The Bank attributes this to easing trade tensions and more stable financial markets. Still, it warns that persistent geopolitical tensions, trade policy uncertainty, and geo-economic fragmentation continue to pose a threat to the recovery.

The global economy, it adds, is shifting away from traditional globalization towards regionalization and protectionism, with increasing formation of trade blocs, rival technological systems, and fragmented financial networks.

Domestically, Uganda’s economy expanded by 6.3% in FY2024/25, up from 6.1% in the previous year, a performance driven largely by strong growth in agriculture (6.6%) and industry (7.0%). The Bank attributes this momentum to increased activity in livestock, fishing, construction, electricity generation, and manufacturing.

BoU noted that while the services sector moderated slightly to 5.4%, overall demand and investment remained strong, boosted by higher government spending and vibrant private sector activity. The report emphasizes that positive trends in the Purchasing Managers’ Index, Business Tendency Index, and consumer confidence indicators continue to signal economic resilience.

Looking ahead, growth is projected to remain firm between 6.0% and 6.5% in FY2025/26 supported by private sector investment, expansion in the extractive industries, and major infrastructure projects. Over the medium term, GDP growth is expected to average 8.0%, assuming continued macroeconomic stability and effective policy implementation.

On the inflation front, Uganda continues to enjoy stability. Inflation remained broadly stable over the twelve months to August 2025, with headline and core inflation averaging 3.5% and 4.0%, respectively.

The Bank attributes this to prudent monetary management, a steady exchange rate, and good food supply.

Inflation is expected to remain within the Bank’s target range, with core inflation projected between 4.5% and 4.8% during FY2025/26 before stabilizing at 5.0% in the medium term. The Bank, however, warns of potential risks from “exchange rate depreciation, commodity price volatility, and adverse weather patterns.”

To maintain this balance, the Monetary Policy Committee (MPC) held the Central Bank Rate (CBR) steady at 9.75% during its August 2025 meeting, a cautious stance aimed at anchoring inflation while supporting investment and growth. The rediscount and bank rates remain at 12.75% and 13.75%, respectively.

The report underscores that the current inflation trends, coupled with a steady policy rate, reflect a measured approach to balancing price stability and sustained economic growth. Over the past year, this strategy has helped protect the value of Ugandans’ incomes and savings while keeping exchange rate volatility in check.

BoU also reaffirmed its vigilance in the face of external risks including climate shocks, declining donor inflows, and unstable global financial conditions.

“To cushion Uganda against these shocks, the Bank will ensure that foreign exchange reserves remain adequate and liquidity in the financial system is sufficient to support macroeconomic stability,” the report notes.

The central bank adds that its monetary policy will remain moderately tight, flexible, and forward-looking to guard against inflation, maintain exchange rate stability, and respond swiftly to global shocks.

Looking to the future, the Bank says Uganda’s growth strategy rests on four priority sectors; Agro-industrialization, Tourism, Minerals (including oil and gas), and Science, Technology & Innovation (ATMS) which are expected to anchor industrialization, job creation and value addition.

By preserving price stability and investor confidence, the Bank believes it is laying the foundation for Uganda’s tenfold growth strategy, a long-term plan to transform the economy amid an uncertain global environment.

The report stresses that Uganda’s outlook remains favorable, but cautious.

“The economy is on a solid growth path, inflation is well-contained, and the monetary policy stance remains appropriate. However, both domestic and external risks continue to evolve, and the Bank remains ready to adjust policy as necessary to safeguard stability and support inclusive growth,” the Bank notes. 

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As the year draws to a close Speke Resort Munyonyo has unveiled its much-anticipated 2025 Festive Season Programme, a grand blend of indulgence, entertainment and family fun designed to help guests bid farewell to 2025 in spectacular style.

Running from December 19, 2025, to January 4, 2026, the “Ultimate Year-End Escape” promises a season of opulence and relaxation along the tranquil shores of Lake Victoria. Guests can expect a packed calendar of events from lavish buffets and live bands to kids’ carnivals, movie nights, and soothing spa experiences all tailored to create unforgettable holiday memories for families, couples, and friends.

Festive room rates start at USD 139 per night between December 19–23 and December 26–30, as well as January 1–4, 2026. Christmas Day, Boxing Day, and New Year’s Eve rates are USD 176 per night, offering guests a luxurious blend of accommodation, fine dining, and entertainment that make the resort one of East Africa’s most sought-after holiday destinations.

On Christmas Day, guests will enjoy a dazzling line-up that blends cultural charm with modern luxury. The day begins with Pamper the Pony sessions for children, followed by the resort’s signature Around the World Christmas Lunch Buffet, featuring global cuisines accompanied by a live band and DJ. Families can also enjoy kids’ movie nights, petting zoo visits, and a magical evening of Christmas cocktails and dinner under the stars; a celebration that perfectly captures the warmth and wonder of the season.

The celebrations continue on Boxing Day with a Bubbly Brunch, live music, and serene lakeside moments. Guests can stroll along the waterfront, unwind at the spa, or enjoy rhythmic performances by live bands. Meanwhile, the Kids’ Carnival and Petting Zoo promise laughter, learning, and plenty of festive fun making it a true family day by the water.

As New Year’s Eve approaches, Speke Resort Munyonyo pulls out all the stops. The resort transforms into a carnival of color and sound, featuring a Cirque Ballet Dinner, live DJ sessions, and thrilling fire-dance performances. At midnight, the skies above Lake Victoria erupt in a breathtaking fireworks display, marking the start of a joyful and hopeful 2026. Guests then welcome the dawn with a sumptuous New Year’s brunch and refreshing morning cocktails by the lakeside.

New Year’s Day brings a gentle beginning to the year, with guests invited to toast new beginnings at the Bloody Beach Brunch, enjoy live acoustic performances, or relax by the pool. A rich buffet at the Sea Breeze Restaurant stretches the day into a sunlit celebration, setting a refreshing tone for the year ahead.

Beyond its festive sparkle, Speke Resort Munyonyo continues to set the benchmark for luxury hospitality in Uganda. With lush gardens, an equestrian center, a world-class spa, and sweeping lake views, the resort offers an experience that harmoniously blends tranquility with sophistication. The 2025 Festive Programme reinforces that legacy, a season designed to be lived, loved, and remembered. Whether it’s a romantic getaway, a family retreat, or a grand New Year countdown, Speke Resort Munyonyo ensures every guest finds their own reason to celebrate.

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The Government of Uganda has fully repaid Shs1.8 trillion in outstanding borrowing from the Bank of Uganda (BoU) as of the end of June 2025, the central bank revealed in its September 2025 State of the Economy report.

“This obligation arose from unreimbursed redemptions of matured government securities and was settled in accordance with the service level agreement, which mandates repayment within 60 days after the end of the fiscal year,” the report stated.

The timely repayment has helped absorb excess liquidity in the financial system, supporting the effective implementation of monetary policy.

“This demonstrates continued commitment to prudent fiscal management amid tightening financing conditions,” the BoU noted, emphasizing the role of strong coordination between fiscal and monetary policies in maintaining macroeconomic stability.

While public debt in Uganda remains sustainable, the central bank cautioned about emerging vulnerabilities. External debt growth rose moderately by 6.4% in July 2025 compared to the same period in 2024. The report also highlighted a gradual increase in domestic borrowing.

“The stock of public debt continued to expand moderately, driven largely by domestic borrowing,” the BoU said.

Nominal public debt as a share of GDP edged up to 51.3% in June 2025 from 46.9% a year earlier, while the present value of debt-to-GDP rose from 39.9% to 45.0%, remaining within sustainable thresholds.

The cost of debt has also increased modestly. Interest payments rose to 4.4% of GDP in FY2024/25 from 3.5% in FY 2023/24, reflecting the growing share of higher-cost domestic financing in the overall debt portfolio.

“This trend underscores the importance of continuously monitoring debt dynamics to safeguard fiscal sustainability while supporting economic growth,” the report showed.

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As part of the ongoing Customer Service Month, Housing Finance Bank has held a community health camp in partnership with C-Care at St. Peter’s Church of Uganda, Katanga, in Wandegeya. The event aimed to bring essential health services closer to the community by providing convenient access to medical check-ups, preventive screenings, and wellness advice within a familiar and easily accessible location.

The health camp drew over 500 participants, providing a comprehensive suite of medical services designed to promote preventive healthcare and wellness. Attendees received free screening and testing for common illnesses, including STIs, hepatitis B screening and Vaccination, Malaria, HIV, polio, and prostate-specific antigen (PSA).

In alignment with the global observance of World Polio Day on October 24, the camp also provided Polio vaccinations to support ongoing eradication efforts. Beyond diagnostics, participants benefited from personalized consultations and counseling services, where qualified medical professionals offered expert guidance on nutrition, physical fitness, and healthy lifestyle practices, reinforcing the importance of proactive health management

The event underscored the importance of accessible healthcare and preventive services, especially in underserved communities like Katanga. Through one-on-one interactions, medical staff addressed individual health concerns and emphasized simple yet effective lifestyle changes that can significantly improve overall well-being. The camp served as a platform for education and awareness, reinforcing that health is a critical pillar of both personal and community development.

Peace Ayebazibwe, the Executive Director at Housing Finance Bank, highlighted the significance of the initiative: “At Housing Finance Bank, we see our role as extending beyond financial services. By holding this health camp, we are celebrating our customers while contributing to the well-being of the communities we serve. This initiative reflects our commitment to fostering sustainability for all and aligns with the Global Sustainable Development Goal 3, which emphasizes good health and well-being as a foundation for progress. Healthy communities are empowered communities, and we are proud to support our customers in living fuller, healthier lives.”

At C-Care Foundation, we emphasize the importance of health education and encourage community members to take charge of their health and participate in medical outreach programs. Together with partners like Housing Finance Bank, we are making vital healthcare accessible to those who need it most.” Said Prudence Asobola, the Manager at C-Care Uganda. The collaboration highlights Housing Finance Bank’s commitment to holistic customer care, recognizing that financial security and personal well-being are interconnected. By providing access to quality healthcare and wellness guidance, the Bank is celebrating its customers while promoting sustainable, long-term community development and contributing to national and global health priorities.

About Housing Finance Bank Ltd

Housing Finance Bank is one of the 10 largest banks in Uganda with a purpose to finance a sustainable future for all through offering convenient, affordable, and relevant solutions for 58 years.

First incorporated as a private limited company in 1967 as Housing Finance Company Uganda Limited, carrying out business as a non-banking credit institution providing mortgage finance and accepting savings deposits from the public, the bank became licensed and regulated by Bank of Uganda as a Commercial Bank in 2007, to carry on the business of banking under the Financial Institutions Act and changed into a public limited liability company known as Housing Finance Bank Limited. Housing Finance Bank’s vision is to be the preferred business and consumer bank with a focus on Housing finance.

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