President Yoweri Kaguta Museveni, on Thursday, 5th June 2025, delivered his State of the Nation Address at the Kololo Ceremonial Grounds, laying out what he called a “clear and irreversible” path toward prosperity and economic transformation.
The president described Uganda as “unstoppable,” citing growth across sectors, from infrastructure and industry to agriculture and science.
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“I salute you all for positively utilizing the peace and tranquility across the country,” he said, pointing to improved life expectancy (now 63 years, up from 45 in 1986), a literacy rate of 80%, and a sharp drop in subsistence farming households from 90% in 1986 to 33% today.
Museveni said the National Resistance Movement (NRM) had provided the ideological foundation, patriotism, pan-Africanism, socio-economic transformation, and democracy, necessary to transform the country. He likened the NRM to the wise builder in the Biblical parable who built his house on the rock, not on sand.
Reports indicate that Uganda’s economy has expanded 15-fold in dollar terms since 1986, now standing at $60.4 billion and projected to reach $65.7 billion in the next financial year. Growth this year is expected at 6.3%, with 7% forecast for 2025/26. The country has also registered a GDP per capita of $1,259 and expects to hit $1,330 by the next financial year.
“Despite the World Bank and USA suspending new financing, our economy remains strong and resilient,” the President said. He highlighted the country’s position as the seventh fastest-growing economy in the world, according to the IMF.
He credited this performance to deliberate interventions, including Shs 8.03 trillion invested in strategic programs such as the Parish Development Model, Emyooga, Uganda Development Bank, and the Agricultural Credit Facility.
Economic analysts say Uganda’s poverty levels have dropped to 16%, below the national target of 18.5%, while income inequality has also declined, with the Gini coefficient falling from 41% in 2020 to 38%.
Inflation has remained stable at 3.6% with goods exports rising by 26% to $9.3 billion, led by gold, coffee, cocoa, steel, and milk products. Given this trend, Ugandan shilling has been appreciating by 6.1% in the past 12 months.
This stability has been attributed ti the country bold approach to production, Uganda has stopped the export of raw minerals, focusing instead on beneficiation. Ten gold refineries now operate in the country, while high-quality steel production has taken off in Kabale. Government, he said, has capitalized the Uganda National Mining Company, which will hold 15% equity in all strategic mining ventures.
The President reported that the oil and gas sector is progressing steadily. The East African Crude Oil Pipeline (EACOP) construction is underway, and the Uganda National Oil Company has begun bulk petroleum trading to stabilize prices. Kabalega International Airport is nearly complete, with over 700 kilometers of tarmacked oil roads constructed in the Albertine region.
Museveni lauded recent industrial advances, including production of hairdryers and refrigeration parts, growth in dairy processing, flower and fruit exports, and pharmaceutical development. He reported a growing electronics and electric vehicle sector, highlighting the Kiira Vehicle Plant in Jinja and international orders for 3,700 buses.
He said agriculture remains central to development, and the government is accelerating irrigation, agro-industrialization, and fertilizer production. The Parish Development Model, now in its third year, has so far received Shs 3.3 trillion, with Shs 100 million disbursed per parish annually. Museveni cited successful examples of smallholders turning Shs 1 million into millions in earnings from crops like onions.
Tourism receipts hit $1.47 billion in 2024, recovering strongly from the COVID-19 slump. Government is investing in infrastructure, sanitation, and marketing to further boost tourist arrivals and revenues. Over 267,000 tourists visited wildlife-protected areas last year.
He announced upcoming major road and bridge works, including roads in Kitgum, Kyenjojo, Iganga, Kamuli, Kalangala, and Mbale. Uganda’s tarmac road coverage has increased to 6,199 kilometers, up from just 1,900 km in 1986.
The country’s power generation capacity now stands at 2,052 megawatts, but the President warned this will run out within five years. He announced new investments in Ayago (840MW), Kiba (400MW), Oriang (382MW), and an 8,400MW nuclear plant in Buyende.
Museveni also reported advances in science and innovation. Makerere developed affordable PCR kits saving the country $37 million annually, Gulu University developed crop disease testing kits, and biotech firm Dei Biopharma filed over 100 patents. He commended Prof. Ogwang’s herbal therapeutics and vaccine efforts and highlighted the Banana Industrial Development plant in Bushenyi now exporting to the Gulf and Europe.
On human capital, the President highlighted ongoing upgrades to health facilities, construction of new maternity wards, and local pharmaceutical production in Namanve. In education, the number of government-aided schools has risen, with 12,550 primary, 1,416 secondary, and 189 vocational schools. Over 50 seed secondary schools were completed last year alone.
Water access now covers 81.1% of households, compared to just 10% in 1986. Government has expanded piped water systems, protected springs, and rainwater harvesting in both urban and rural areas. The rehabilitation of over 1,300 boreholes has restored access for hundreds of thousands.
He also emphasized the importance of regional integration, noting efforts to ease trade with the Democratic Republic of Congo, South Sudan, and other neighbors. He reiterated his support for continental unity and African economic liberation.
On politics, Museveni praised the peaceful May 6th NRM village elections, which he described as transparent and fraud-free, identifying 18.5 million members above 18 years. However, he cautioned that internal misconduct was being investigated.
“NRM members should stay calm. Whatever mistakes happened, happened here. We shall unearth them,” he said.
He warned against careerists and self-seeking individuals within the party and government who, he said, hinder Uganda’s progress. “They hardly bother with the salvation policies of Uganda or Africa,” he said.
President Museveni reaffirmed his target of growing Uganda’s economy to $500 billion by 2040. He listed agro-industrialization, tourism, mineral development including oil and gas, and science and innovation as the four key drivers.
“Uganda is irreversibly a middle-income country,” he said, invoking a Runyankore proverb: ‘Akahangyiirwe rwaasha tikahanguurwa munobi’ to refer to ‘what God has created cannot be destroyed by haters.’
The President closed by wishing Ugandans a peaceful election season and declared the 5th session of the 11th Parliament officially open.
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