Six weeks into the ongoing conflict involving the United States, Israel and Iran that has disrupted global crude and refined petroleum supply chains, Uganda is emerging with significantly lower pump prices than its regional peers.

The development comes as the Uganda National oil Company (UNOC), announced Tuesday, that a new consignment of petroleum products including 119 million litres of  petrol, had landed at Mombasa, further allaying emerging jitters in the market. UNOC, said petroleum product supply remains secure and sufficient to meet national demand.

Latest regional pricing data shared on X (formerly Twitter) by the Money Academy Kenya, shows Uganda’s fuel prices now sit comfortably below most East African markets when denominated in Kenyan shillings:

• Kenya: Petrol Sh206 | Diesel Sh206
• Uganda: Petrol Sh184 | Diesel Sh177
• Rwanda: Petrol Sh204 | Diesel Sh195
• Tanzania: Petrol Sh190 | Diesel Sh189
• Ethiopia: Petrol Sh118 | Diesel Sh135

The price gap, particularly with Kenya, is now being cited as early validation of Uganda’s controversial decision to restructure its fuel import system by sidelining private oil marketing companies from direct procurement.

Under the new model, all fuel imports are handled centrally by the Uganda National Oil Company (UNOC), which has contracted global energy trader Vitol to manage supply.

The shift, implemented earlier this year, effectively removed intermediaries that previously sourced fuel through Kenyan supply chains—cutting out multiple layers of mark-ups that had long inflated pump prices.

Uganda’s relative price stability is being attributed to two key policy shifts: centralised procurement and a differentiated tax regime.

By consolidating imports under UNOC, the government has introduced a more controlled pricing framework, where local oil marketing companies now purchase fuel domestically rather than navigating complex regional supply chains.

This has significantly reduced exposure to price distortions linked to transit, brokerage, and foreign exchange layers—costs that are often passed on to consumers.

Equally important is Uganda’s tax structure. Unlike Kenya, which applies Value Added Tax (VAT) on fuel, Uganda does not levy VAT. Instead, it relies on excise duty, which can be adjusted periodically rather than rising automatically.

This gives policymakers greater flexibility to cushion consumers during periods of global price volatility—such as the current disruptions triggered by tensions in the Middle East.

The pricing divergence is likely to reignite debate over fuel taxation and supply chain structures across East Africa.

Kenya’s liberalised system, while competitive in theory, has increasingly come under scrutiny for exposing consumers to higher and more volatile prices, particularly during global shocks.

Uganda’s model, by contrast, reflects a more interventionist approach—one that prioritises price stability and supply security, even at the cost of reduced private sector participation in procurement.

Analysts say the current crisis offers a real-world stress test of both systems. Global fuel markets have been unsettled by supply uncertainties linked to the conflict involving the United States, Israel and Iran, with concerns over potential disruptions to key shipping routes and refining capacity.

In such an environment, countries with streamlined procurement systems and flexible tax policies are better positioned to absorb shocks.

Uganda’s ability to maintain relatively lower pump prices suggests that reducing inefficiencies within the supply chain can be as important as managing global price exposure.

However, questions remain about the long-term sustainability of the model.

Centralized procurement places significant operational responsibility on UNOC, raising concerns about the risks associated with reliance on a single supplier.

There are also broader considerations around market competition and whether reduced private sector involvement could have unintended consequences over time.

Still, in the short term, the results clearly show that Uganda’s fuel pricing reforms are delivering measurable benefits at the pump.

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Civil society organisations have raised concerns over Uganda’s proposed tax measures for the 2026/27 financial year, warning that an overreliance on indirect taxes could raise the cost of living, slow economic activity, and disproportionately affect low-income households.

Presenting their analysis at a breakfast meeting in Kampala on April 10, stakeholders under the Civil Society Budget Advocacy Group (CSBAG) said while some proposals improve fairness, others risk undermining gains by increasing pressure on consumers and key sectors of the economy.

CSBAG welcomed the government’s proposal to raise the Pay As You Earn (PAYE) threshold from UGX 235,000 to UGX 335,000 per month, noting that it would increase disposable income for low-wage earners and make the tax system more equitable. However, the group argued that these gains could be offset by higher indirect taxes on essential goods and services.

Among the most contentious proposals is the increase in excise duty on sugar from UGX 100 to UGX 300 per kilogram, alongside a UGX 200 per litre hike on petrol and diesel. Civil society actors warn that these adjustments will likely cascade through the economy, raising transport costs and pushing up prices of basic commodities.

The planned doubling of excise duty on cement—from UGX 500 to UGX 1,000 per 50kg bag—has also drawn criticism, with CSBAG cautioning that it could further strain Uganda’s already constrained housing sector. Rising construction costs, they argue, could slow down building activity and worsen housing affordability.

Similarly, the proposal to increase the surcharge on imported second-hand clothes to 30 percent is seen as potentially disruptive. While intended to support domestic textile manufacturing, CSOs warn that the move could shrink supply in a market still heavily dependent on imports, leading to higher prices before local production capacity can fill the gap.

On the digital economy front, civil society groups expressed support for the introduction of a uniform 0.25 percent levy on cash withdrawals across the financial system. This would effectively reduce the current 0.5 percent charge on mobile money transactions while broadening the tax base to include other platforms.

They argue that although the lower rate may reduce revenue in the short term, expanding the tax net could drive long-term gains, with transaction values projected to double over the medium term. However, they stressed that this reform should be complemented by removing import duties on entry-level smartphones to accelerate digital inclusion and economic activity.

CSBAG Executive Director Julius Mukunda criticised the broader tax strategy for focusing on increasing rates within an already narrow tax base instead of significantly expanding it.

Civil society organisations further warned that continued tax exemptions in some sectors undermine revenue mobilisation efforts, effectively shifting the burden onto ordinary taxpayers. At the same time, they noted that targeted “sin taxes” and improved enforcement could boost revenue while supporting public health objectives if carefully implemented.

Ultimately, the groups say the central challenge for policymakers is balancing revenue mobilisation with fairness and economic growth. Without adequate safeguards, they caution, the current proposals risk widening inequality and slowing Uganda’s post-pandemic recovery.

“The key question is whether Uganda can balance revenue collection with fairness and economic growth?” Mukunda observed.  “A more sustainable path may lie in widening the tax base, improving compliance, and protecting low-income households.”

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Upgrade from legacy system signals shift toward integrated finance, automation and real-time decision-making

Equity Bank Uganda has launched a redesigned digital platform for businesses, signalling a shift toward integrated financial management, automation and real-time banking.

Regional lender Equity’s Ugandan unit has rolled out a redesigned digital platform for enterprises, positioning it as a core pillar in its push to deepen business banking, digitise client operations and capture a larger share of transactional flows.

The new platform, Equity Online for Business, replaces the lender’s earlier EazzyBiz system and will become mandatory for all corporate and SME customers using the bank’s digital channels from April 8. The migration signals a decisive move away from fragmented standalone online banking tools, toward a more integrated financial management ecosystem.

Speaking at the launch of the platform at Protea Hotel in Kampala, on Wednesday, Executive Director Claver Serumaga said the new platform was designed around the evolving needs of modern businesses. “Commerce is evolving rapidly, with customers expecting immediacy, reliability and seamless integration. Equity Online for Business responds to these needs by consolidating all essential financial tools into one platform: enabling businesses to manage accounts, supplier payments, payroll, recurring bills, foreign transactions and reconciliations with clarity and efficiency,” said Serumaga.

At its core, the platform reflects a strategic pivot by embedding banking services directly into business workflows rather than operating as a separate interface. Through APIs, ERP integrations and host-to-host connectivity, Equity is targeting firms seeking tighter alignment between finance, procurement, payroll and treasury functions.

This design positions the bank within a broader shift in financial services, where institutions are competing not just on access to capital, but on how effectively they integrate into clients’ operational systems.

Equity Online for Business consolidates multiple functions—payments, payroll, supplier management, foreign exchange and reconciliations—into a single interface. The emphasis is on reducing friction in day-to-day financial operations while enabling real-time visibility across accounts.

The platform introduces automated reconciliation tools, management dashboards and audit trails, allowing businesses to track transactions and monitor performance without heavy manual intervention. For finance teams, this reduces accounting overheads while improving accuracy and compliance.

Liquidity management features are a central component. Businesses can view multi-currency positions in real time and deploy automated sweep transfers to optimise working capital—capabilities typically associated with more advanced treasury systems.

The inclusion of real-time foreign exchange updates and instant inter-country transfers also signals an attempt to support regionally active firms, particularly those operating across East Africa. 

A defining feature of the platform is the shift toward client-side control. Corporate administrators can independently onboard users, assign roles and manage access permissions, reflecting growing demand for internal governance in digital banking environments.

The user interface has been redesigned around simplicity and customisation, with adaptable layouts, language options and omnichannel access via web and mobile. This aligns with a broader industry trend toward consumer-grade user experiences in enterprise software.

Security architecture has also been reinforced, combining password protection, one-time passwords (OTP), token-based authentication and structured approval workflows. The layered approach is intended to address rising concerns around fraud and unauthorised access in digital financial systems.

The launch underscores Equity’s intent to position itself at the centre of a cash-lite, digitally driven business ecosystem. By offering tools that extend beyond basic banking into financial management and analytics, the lender is seeking to deepen client dependence and increase transaction volumes flowing through its platforms.

Crucially, the strategy hinges on making the bank’s infrastructure part of how businesses operate daily—handling everything from statutory payments to supplier settlements—rather than a peripheral service.

“Equity Online for Business is more than an online banking portal, it is a comprehensive financial management tool designed to eliminate inefficiencies and give businesses the confidence to make real‑time decisions,” said Serumaga. “We are committed to continuously improving this platform based on customer feedback and investing in technology that supports business growth,” he added.

As competition intensifies among banks and fintechs in Uganda’s corporate segment, platforms like Equity Online for Business are becoming key battlegrounds, where differentiation is defined by integration, speed and data visibility as much as by pricing.

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A new partnership between UN Women and Equity Bank Uganda is bringing renewed focus on the distance between financial access and meaningful economic participation for women; a persistent gap in Uganda’s growth story.

Signed this week in Kampala, the two-year collaboration running from April 2026–March 2028, is designed to expand women’s access to financial services while pairing that access with skills, enterprise support and clean energy financing. The initiative will target underserved groups, including women in refugee-hosting communities, where economic vulnerability is often most acute.

At one level, the partnership plays on the familiar development template of providing credit, training and market access. But its structure also signals a more deliberate shift toward tackling the layered nature of financial exclusion, where access alone has often proved insufficient.

“This partnership reflects our shared commitment to ensuring that women—especially those in underserved and vulnerable communities—have the tools, resources, and opportunities to thrive economically,” said Adekemi Ndieli, UN Women Deputy Country Representative in Uganda. “By working together, we can accelerate progress toward inclusive growth and sustainable development.”

The emphasis on combining finance with capability—financial literacy, digital skills and entrepreneurship training reinforces a growing recognition among policymakers and lenders that traditional banking models have struggled to fully integrate women operating in informal and rural economies.

For Equity Bank Uganda, the partnership dovetails into the lenders social agenda that has for long approached inclusion, less as a compliance obligation and more as a growth frontier.

“Equity Bank Uganda is proud to partner with UN Women to dismantle barriers that prevent women from achieving economic autonomy,” said Equity Bank Uganda Managing Director Gift Shoko. “Our commitment goes beyond financial products; we are offering training, digital literacy and clean energy solutions to ensure women can compete and succeed in today’s economy.”

Uganda’s financial inclusion rates have improved in recent years, driven by mobile money and agency banking. Yet disparities remain pronounced, particularly for women in agriculture and informal trade, where access to credit, markets and formal financial tools remains uneven.

The partnership’s focus on women-led agribusinesses and cooperatives points to an attempt to bridge that gap by linking finance to productive sectors where women are already dominant but undercapitalised.

UN Women will provide technical expertise, community mobilization, and policy support, while Equity Bank Uganda will offer tailored financial products, training and advisory services. The partnership will be implemented through a jointly developed work plan with clear targets and measurable impact.

According to the partners, the initiatives implemented under this pact are expected to benefit thousands of women across Uganda by enabling them to access inclusive financial services, expand their economic opportunities, and strengthen their capacity to contribute to inclusive and sustainable development. This includes supporting women’s participation in national and regional markets under the African Continental Free Trade Area (AfCFTA), which has the potential to unlock greater market access, scale women led enterprises, and amplify women’s role as drivers of regional economic growth.

By aligning with opportunities under the African Continental Free Trade Area, the initiative positions women not just as local entrepreneurs but as potential participants in cross-border trade—an area where scale and competitiveness have historically been constrained by limited access to finance and information.

Equally notable is the integration of clean energy financing into the programme. For many low-income households and small enterprises, energy access remains a critical bottleneck, affecting productivity and costs. Linking financing to energy solutions could, analysts say, unlock incremental gains in both household welfare and business performance.

Shoko framed the effort in broader economic terms: “We believe inclusive finance is the foundation of inclusive growth. Together, we will empower women to transform their enterprises and their communities.”

For development actors, that framing underscores a 360-degree shift from viewing women as beneficiaries of inclusion to recognising them as drivers of economic expansion.

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SBG Securities Uganda has introduced a USD-denominated Fixed Income Unit Trust Fund, marking a strategic shift toward multi-currency investment offerings as global economic volatility reshapes investor behaviour.

The new product complements the firm’s existing Uganda shilling (UGX) unit trust, giving investors the option to diversify across currencies at a time when exchange rate pressures and global uncertainty are increasingly influencing returns.

The move reflects a growing recognition within Uganda’s financial sector that currency risk is no longer peripheral but central to portfolio strategy. With geopolitical tensions in the Middle East and fluctuating energy prices driving volatility in global markets, investors are seeking safer stores of value and instruments that can preserve capital in hard currency terms.

Grace Semakula, Chief Executive of SBG Securities Uganda, said the introduction of the USD fund is designed to offer flexibility rather than replace local currency investments.

“The Uganda shilling remains a strong and important foundation for domestic investment. However, in today’s dynamic environment, diversification across currencies is becoming essential. This USD fund complements our UGX offering by giving clients more options as they navigate different investment needs,” she said.

At its core, the USD Fixed Income Unit Trust is structured to act as a hedge against currency depreciation—particularly relevant for investors with obligations or income streams linked to foreign currency. By holding assets denominated in US dollars, investors can shield part of their portfolio from local currency volatility while maintaining exposure to regional and offshore debt markets.

The fund will primarily invest in short-term fixed and floating-rate debt instruments issued by sovereigns, rated banks and corporates across East Africa and international markets. This positioning reflects a cautious strategy focused on capital preservation and steady income generation rather than high-risk returns.

Salima Katamba, Investment Manager at SBG Securities, said unit trusts remain one of the most accessible entry points for retail investors, allowing gradual wealth accumulation without the need for large upfront capital.

“Many people have long-term financial goals but may not have the full capital at once. Unit trusts allow investors to contribute smaller amounts consistently—monthly or even more frequently—and build a meaningful investment portfolio over time,” she explained.

The USD fund has been structured with a relatively low entry threshold, requiring a minimum initial investment of USD 100, with similar amounts for subsequent top-ups. Investors retain flexibility to contribute and withdraw based on their financial needs, a feature that aligns with evolving preferences for liquidity and control.

Beyond product expansion, the launch signals a broader strategic direction for SBG Securities as it positions itself within a competitive and maturing asset management landscape. The firm is betting on a future where Ugandan investors demand more sophisticated instruments, including multi-currency portfolios, as their exposure to global markets increases.

The initiative also aligns with the wider ambitions of Stanbic Bank Uganda, SBG Securities’ parent company, to deepen financial inclusion and expand access to wealth-building tools.

As global economic conditions remain fluid, the introduction of USD-denominated investment options suggests a shift in how local investors are thinking about risk—moving beyond returns in nominal terms to a more nuanced focus on value preservation across currencies.

With both UGX and USD unit trust options now available, SBG Securities is effectively offering a dual-track strategy anchored in local economic growth on one hand, and the other designed to hedge against external shocks. For investors navigating an increasingly uncertain global environment, that combination may prove decisive.

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Equity Group Holdings has posted a record financial performance for 2025, with profit after tax rising 55pc to KSh75.5 billion, underscoring the success of its regional expansion strategy and digital transformation.

The Nairobi-listed lender’s balance sheet grew 9pc to KSh1.97 trillion, while customer deposits rose to KSh1.46 trillion and net loans increased to KSh882.5 billion. Total income climbed 12pc to KSh217.7 billion, supported by a 17pc rise in net interest income and steady growth in non-funded income.

A key driver of the performance was improved operational efficiency, with the cost-to-income ratio dropping to 51pc from 58.2pc reflecting the bank’s shift toward digital channels. More than 98pc of transactions were conducted outside branches, with 88.4pc processed through digital platforms.

Group CEO James Mwangi said the results highlight the success of Equity’s transformation into a diversified, pan-African financial services group. Regional subsidiaries now contribute nearly half of total banking profitability, reinforcing the importance of geographic diversification.

Subsidiary performance was particularly strong. Equity Bank Kenya reported a 63pc rise in profit to KSh39.2 billion, while regional operations recorded 53pc growth overall. Uganda’s business posted a fivefold increase in profit, while Tanzania and the Democratic Republic of Congo also delivered triple-digit and strong double-digit growth respectively.

The Group’s insurance arm, Equity Insurance Group, also gained momentum, with gross written premiums rising 75pc and profit before tax increasing 36pc, supported by expansion into life, health and general insurance.

Directors have proposed a dividend of KSh5.75 per share, amounting to KSh21.7 billion, a 35pc increase from the previous year.

Beyond financial performance, Equity continued to scale its social impact investments, channeling nearly KSh99.5 billion into initiatives spanning education, enterprise development, healthcare and climate resilience through the Equity Group Foundation.

The results come against a backdrop of improving economic conditions across Africa, with several of the world’s fastest-growing economies on the continent. Commodity exports and easing global inflation have supported growth in East Africa, although short-term risks persist from geopolitical tensions and fluctuating oil prices.

Looking ahead, the lender is positioning itself for further expansion under its Africa Recovery and Resilience Plan, targeting operations in 15 countries and 100 million customers by 2030. The strategy is anchored on digital innovation, AI-enabled systems and a broader shift toward becoming a “transformation finance institution” that mobilizes capital and supports inclusive growth across the continent.

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Airports worldwide are facing a new headache as operational bottlenecks persist despite billions being invested in expanding terminals, runways and gates. Global aviation IT provider SITA, says the disconnect points to a deeper structural challenge within modern airport ecosystems, where performance is increasingly shaped not by physical capacity but by how effectively operations are coordinated across stakeholders and systems.

In a new whitepaper, SITA suggests that the problem lies less in physical capacity and more in how effectively airport systems and stakeholders work together.

The report argues that airport performance is increasingly constrained by fragmented decision-making rather than infrastructure gaps. As passenger traffic grows and airport ecosystems become more complex, misaligned operations across airlines, ground handlers, security, and air traffic control are emerging as the primary source of inefficiency.

At the core of the analysis is the concept of Total Airport Management (TAM)—a model that integrates real-time data, predictive analytics and coordinated decision-making across all operational stakeholders. Rather than optimising isolated processes such as check-in or boarding, TAM seeks to align the entire system, enabling earlier responses to disruptions and more efficient use of existing infrastructure.

This shift comes at a time when disruption remains widespread. Data from AirHelp indicates that nearly a quarter of global passengers experienced delays or cancellations in the first half of 2025, underscoring how operational breakdowns ripple across interconnected systems.

The whitepaper identifies three structural challenges that continue to undermine airport performance.

First, siloed performance metrics create unintended consequences. When departments focus narrowly on their own key performance indicators—whether in security, check-in, or gate operations—delays are often pushed downstream rather than resolved. A backlog at security, for example, may simply shift congestion to boarding gates, amplifying disruption across the network.

Second, visibility without coordination limits impact. While many airports now operate sophisticated control rooms and dashboards, simply observing real-time data does not automatically translate into better decisions. Performance improves when stakeholders act on a shared operational picture, supported by predictive insights that anticipate how situations will evolve.

This principle underpins Airport Collaborative Decision Making (A-CDM), a framework promoted by organizations such as Airports Council International, International Air Transport Association, International Civil Aviation Organization and Civil Air Navigation Services Organisation. By aligning stakeholders around shared data and objectives, A-CDM has become a global benchmark for improving operational efficiency.

Third, digital transformation must coexist with live operations. Airports cannot simply replace legacy systems that underpin daily activity. Instead, the report advocates layering intelligent coordination tools on top of existing infrastructure—creating a “single source of truth” that enables better planning, faster decision-making and more effective resource allocation.

Case study in coordination

The approach is already being tested in practice. In Abu Dhabi, a shared operational data platform integrates inputs from airlines, ground handlers, air traffic control and government agencies. By aligning decisions earlier in the operational cycle, the system aims to strengthen resilience, improve on-time performance and support long-term growth without requiring immediate physical expansion.

Industry executives say the implications are significant. Rather than relying solely on costly infrastructure projects, airports could unlock “hidden capacity” by improving coordination—reducing delays and smoothing passenger flows using existing assets.

The findings reflect a broader shift in aviation strategy. As demand recovers and expands, particularly in emerging markets, airports are under pressure to handle higher volumes without proportionate increases in cost or footprint.

According to SITA, the key lies in anticipating disruptions before they escalate. Predictive analytics can identify pressure points—such as incoming delays, congestion risks or staffing constraints—allowing operators to intervene earlier and prevent cascading effects across the system.

The message for airport operators is clear: infrastructure investment remains necessary, but it is no longer sufficient. Performance gains will increasingly depend on how well airports function as integrated systems rather than collections of independent units.

For passengers, the outcome could be fewer delays, smoother connections and more reliable journeys. For the industry, it signals a recalibration of priorities, where digital coordination becomes as critical as physical expansion.

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An estimated 12 pc to 15 pc of maritime trade and around 30 pc of global container traffic passes through the Suez Canal. The Suez Canal is also a key trade route for coffee shipments from Asia to the Mediterranean and southern Europe.

During the season between late 2024 and late 2025, Uganda overtook Ethiopia as Africa’s top coffee exporter, shipping out 8.4 million bags worth $2.4 billion. In January total earnings from coffee reached just over $160 million.

Meanwhile, according to industry analysts Sucafina, futures prices on the coffee markets have started to rise again especially for the Arabica variety. The week ending Friday March 6, saw the contract for May delivery in New York and London at 293.30 cents and $3,772, up 4.5% and 4.1% respectively on the previous Friday. On Monday, Barchart reported that New York Arabica coffee prices posted a new 3-week high. In London, Robusta futures prices were down by 1.54 pc on Tuesday to $3713 a tonne.

Soaring coffee exports from Vietnam, the world’s largest Robusta producer, are bearish for Robusta prices. Vietnam’s National Statistics Office reported on March 6 that its January to February 2026 coffee exports rose by 14 pc year-on-year to 366,000 metric tonne.

The war in Iran has halted shipping through the Strait of Hormuz. The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters.

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This poses a macroeconomic risk for many African nations, including Uganda, because of being net importers of critical goods notably fuel which are globally priced in dollars. When the dollar strengthens, local currencies depreciate which also tends to trigger inflationary pressures by driving up the domestic cost of living. Speaking in Tokyo, the International Monetary Fund Managing Director Kristalina Georgieva, has advised policymakers to prepare for the unthinkable.

Giving the keynote address at Japan’s Ministry of Finance’s ‘Future of the Global Economy amid a Fluid International Economic and Monetary Order’ Symposium she said, “Energy security has shot up the list of concerns. If the new conflict proves prolonged, it has clear and obvious potential to affect market sentiment, growth, and inflation, placing new demands on policymakers.

And if, as we all hope, the conflict ends soon, then be sure that, before long, some new shock will come. My advice to policymakers everywhere in this new global environment: think of the unthinkable and prepare for it.”

In early February, commenting on the Uganda’s inflation outlook for the near term, Michael Atingi-Ego, the central bank Governor said, “External factors that could exert higher-than-anticipated inflationary pressures include a persistently depreciated exchange rate, escalating geopolitical tensions that could disrupt global supply chains, and adverse weather conditions that could reduce agricultural output and raise food prices.”

In confronting the unthinkable, Georgieva said, “Yes, but how? By focusing on what you can control. Three pieces of advice–one, invest in strong institutions and policy frameworks to underpin strong economies and private sector-led growth. Two, use policy space when needed and be sure to replenish it. Three—above all—be agile.”

She said, “One core role for public authorities is to provide a guiding hand—ensuring forward-leaning, economy-wide responses to transformative forces; regulating wisely, not unduly; and providing the institutional bedrock for the private sector to flourish. As most emerging market economies have learned in recent years, it pays off—in better growth and inflation outcomes—to have independent central banks, fiscal rules, and other policy frameworks.”

Acknowledging that the private sector tends to be more agile than governments Georgieva said, “We see this in the way trade policy shocks and the forces of geopolitics more broadly are combining to deliver a private sector-led global reconfiguration of trade. But governments also need to show greater agility in an uncertain and fluid world—seeing not only challenges, but also opportunities. One obvious example: regional integration.”

She said central banks have mandates that set their broad direction—be it an inflation target or a currency peg—but, beyond that, must always be attentive to the data in deciding how to use their policy space.

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CSOs have raised fresh concerns over Uganda’s fiscal discipline and service delivery, warning that rising public debt, mounting domestic arrears and inefficient public investments could undermine economic stability and strain public services if urgent reforms are not undertaken.

In a thematic review of the 2025 Auditor General’s report, the Civil Society Budget Advocacy Group (CSBAG) said the audit findings reveal deep structural weaknesses in public financial management, including pressure on health financing, education infrastructure gaps, and poor performance by some state-owned enterprises.

Presenting the analysis in Ntinda on March 8, CSBAG Executive Director Julius Mukunda urged government and Parliament to treat the audit findings as an opportunity to restore fiscal discipline and improve accountability in the management of public resources.

“The findings of the Auditor General demand more than acknowledgement—they require decisive corrective action,” Mukunda observed. “Sustained fiscal credibility and improved service delivery will only be achieved if reforms are implemented with discipline, consistency and accountability.”

According to the review, Uganda’s public debt has grown sharply over the past five years, rising from UGX 69.2 trillion in FY2020/21 to UGX 115.4 trillion in FY2024/25, a 66.7 percent increase.

The country’s debt-to-GDP ratio now stands at 50.29 percent, lapping at the 51.2 percent ceiling set under the Charter for Fiscal Responsibility.

Even more concerning, the CSOs say, is the rising cost of servicing that debt. Interest payments now account for 23.66 percent of domestic revenue, almost double the government’s benchmark of 12.5 percent.

“This means that for every UGX100 collected in domestic revenue, about UGX24 is spent on interest payments alone,” the report notes, warning that the trend is shrinking fiscal space for key sectors such as health, education, agriculture and infrastructure.

Domestic borrowing has also surged, increasing from UGX39.16 trillion in June 2024 to UGX59.02 trillion in June 2025, now accounting for more than half of Uganda’s public debt.

While domestic financing reduces exposure to exchange rate volatility, Mukunda said it carries higher interest costs and risks crowding out private sector credit.

Revenue mobilisation still weak

Despite improvements in tax collection, Uganda’s revenue effort remains weak relative to the size of the economy.

Domestic revenue rose from UGX22.1 trillion in FY2021/22 to UGX32.36 trillion in FY2024/25, a 46 percent increase, but the tax-to-GDP ratio remains stuck at 13.4 percent.

This is below the 15 percent benchmark for developing economies, the 18.6 percent Sub-Saharan Africa average, and far below the 23 percent global average CSBAG says.

The audit also shows that only 48 percent of the 5.25 million registered taxpayers actually contribute revenue, leaving more than 2.7 million taxpayers inactive.

In addition, the structure of taxation remains uneven.

Agriculture contributes 26.1 percent of GDP but only 1.63 percent of tax revenue, while trade and manufacturing sectors contribute disproportionately larger shares of tax relative to their economic output.

Mukunda argues that the sector could pull its weight if taxes were applied to its midstream and downstream activities such as bulk trade in agricultural produce.

As it is, eschewing taxation on agriculture has resulted in an inordinate tax burden on a small pool of tax payers such as workers in formal employment. The government has recently proposed raising the PAYE rate to 40 percent, a move likely to impose more pain on salaried employees.

However, the adoption of digital tax systems has produced some positive results, CSBAG said.

The rollout of the Electronic Fiscal Receipting and Invoicing System (EFRIS) has helped increase VAT collections by 56 percent, rising from UGX5.01 trillion in FY2019/20 to UGX8.78 trillion in FY2024/25.

Another major concern highlighted by CSBAG is the rapid growth of domestic arrears owed by government to suppliers and contractors.

These arrears rose from UGX3.33 trillion in 2019 to UGX13.8 trillion in 2024, before dropping to UGX8.4 trillion in 2025 after a restructuring of government borrowing from the central bank.

CSBAG notes though, that the reduction was largely technical rather than reflecting actual payment of outstanding obligations by the government because the obligations were deferred by converting part of the outstanding into long tenure bonds.

The continued accumulation of arrears is putting pressure on businesses that depend on government contracts.

“It constrains private sector liquidity and increases procurement costs as suppliers factor payment uncertainty into pricing,” the review notes.

Health and education systems under strain

The audit findings also reveal serious funding and operational gaps in key social sectors.

In health, the National Medical Stores required UGX1.574 trillion to meet national demand for medicines in FY2024/25 but received UGX1.393 trillion, leaving an 11 percent funding gap.

At Mulago National Referral Hospital, the shortfall was even more severe, with only UGX18.25 billion provided against a need of UGX72.4 billion for specialised medicines.

The health system is also heavily dependent on development partners, which financed 64.3 percent of essential medicines in FY2024/25.

With about US$312.8 million in donor funding expected to be withdrawn starting FY2025/26, analysts warn that Uganda risks worsening drug shortages unless domestic funding increases.

Meanwhile, the audit exposed widespread infrastructure gaps in secondary schools under the Universal Secondary Education programme.

Inspections found that 136 schools lacked science laboratories, 182 had no libraries, and 380 schools had inadequate classroom facilities, leading to overcrowding.

Teacher shortages also persist, with only 65 percent of required secondary school teaching positions filled, forcing schools to recruit additional staff locally and accumulate salary arrears.

Weak performance in public investments and SOEs

The review also flagged inefficiencies in major public investments and state-owned enterprises.

Among the entities reporting significant losses were the Uganda Electricity Transmission Company Limited, Uganda Broadcasting Corporation and Uganda Airlines.

Uganda Airlines alone received UGX1.984 trillion in government funding in FY2024/25, yet continues to face financial and operational challenges, including grounded aircraft and procurement irregularities cited in the audit.

Energy infrastructure has also been underutilised. The Karuma Hydropower Plant is operating at only 30 percent of its installed capacity, while the Namanve Thermal Power Plant is running below capacity due to maintenance delays.

Environmental and land governance concerns

Environmental management also emerged as a major concern, with the audit showing that wetland encroachment and degradation remain widespread.

Only 739 kilometres of wetlands were demarcated over three years, representing just 18 percent of the planned target, largely due to funding shortages.

Land administration challenges are also slowing public infrastructure projects, with 30 percent of land registration applications still pending and major delays in issuing land titles for government projects.

CSBAG urged government to strengthen fiscal discipline, enforce compliance with procurement and budgeting rules, and improve oversight of public investments.

The collective also called for better implementation of affirmative procurement policies meant to allocate 15 percent of government contracts to women, youth and persons with disabilities, noting that none of the audited entities fully complied with the requirement.

“Public financial management reforms must translate into tangible improvements in service delivery,” Mukunda said. “Every shilling counts.”

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