Musevenomics is the term being coined to describe the economic philosophy and policies that are defining Uganda’s development under President Yoweri Museveni. For anyone seeking to understand Uganda’s economic trajectory, Musevenomics is offering a lens into the strategies, successes, and challenges that are shaping the country’s journey toward middle-income status. Here’s what you need to know about this transformative yet debated approach.

The first pillar, Security of Persons and Property, is proving critical. Though the creation of a disciplined military, the Uganda People’s Defence Force, the government  restored peace, paving the way for foreign investment. This focus on stability is proving effective, as foreign direct investment is growing from virtually nothing in 1986 to 3.58% of GDP by 2019, signaling rising investor confidence.

Privatization and Market Liberalization is becoming another cornerstone. Museveni’s government is embracing neoliberal reforms, often guided by international institutions like the IMF and World Bank, to shift Uganda from a state-controlled economy to one driven by market forces. Sectors like foreign exchange and telecommunications are being opened to competition, fostering private enterprise and efficiency. Privatization, however, is sparking controversy, as it is sometimes favoring politically connected elites, leading to accusations of crony capitalism. Despite this, the policy is helping diversify Uganda’s economy, reducing reliance on coffee exports, which are falling from 90% of export receipts in the 1980s to less than 10% by 2020, as sectors like tourism, banking, and real estate are flourishing.

Universal Education and Skilling are remaining central to Musevenomics’ vision. The introduction of Universal Primary Education in 1997 and Universal Secondary Education in 2007 is dramatically expanding access to schooling, pushing literacy rates to 82% by 2020. Skilling programs are aiming to equip the workforce for a modern economy, though challenges like underfunded schools and high youth unemployment, estimated at 13-15%, are revealing gaps in execution. These initiatives are reflecting a commitment to inclusive growth, ensuring that economic progress is reaching beyond urban centers.

Addressing the Cost of Doing Business is serving as another defining feature. Musevenomics is prioritizing reducing operational costs by investing heavily in roads, railways, and energy. Electricity generation capacity is growing from 250 MW in 1986 to 1,050 MW by 2020, powering businesses and homes. Projects like the Entebbe-Kampala Expressway and upcoming oil developments, including the East African Crude Oil Pipeline set to begin production in 2025, are underscoring an ambition to modernize. Yet, high electricity tariffs and logistical bottlenecks are continuing to hinder progress, reminding us that infrastructure gains are remaining a work in progress.

A key goal of Musevenomics is Monetizing the Economy, moving it away from subsistence agriculture, which is accounting for 68% of economic activity in 1986 but only 39% by 2021. By promoting commercial agriculture and urban sectors like services and manufacturing, the government is integrating more Ugandans into the cash economy. This shift is fueling a consumerist culture, with growing middle-class aspirations, but it is also highlighting persistent rural-urban disparities.

Land Rights Reform is playing a critical role in addressing historical inequities. The 1995 Constitution is recognizing the rights of bona fide tenants, granting security to those occupying registered land. This policy is aiming to reduce disputes and encourage agricultural investment, though uneven implementation is leaving some tensions unresolved. Similarly, Inclusive Socio-Economic Policies like “Bonna Bagaggawale” (wealth for all), “Bonna Basome” (education for all), and “Bonna Babe Balamu” (health for all) are seeking to democratize access to opportunities, supported by a decentralized local governance system. These efforts are improving service delivery, but rural areas are still lagging behind.

Macroeconomic Stability is remaining a hallmark of Musevenomics, with Uganda achieving an average GDP growth rate of 8.4% annually for over two decades. Poverty rates are dropping from 56% in 1992 to 31% by 2006, though progress is slowing, with 20.3% of Ugandans still below the poverty line in 2020. Prudent fiscal and monetary policies are maintaining stability, but rising public debt, reaching 52% of GDP by 2023, is raising concerns about sustainability, especially with large infrastructure projects.

Diversification of Exports is proving pivotal in building a resilient economy. Policies are reducing coffee’s export share from 90% in the 1980s to less than 10% by 2020, with growth in sectors like tourism, banking, and real estate. Emerging exports like gold and fish, alongside upcoming oil production, are signaling further diversification.

Despite its achievements, Musevenomics is facing sharp criticism. Its neoliberal foundation is often clashing with state-driven favoritism, where government influence is benefiting a select few, undermining equitable growth. Economic gains are not fully translating into structural transformation, as agriculture and informal sectors are still dominating. Rapid population growth, at 3.3% annually, is diluting per capita GDP gains, while corruption, with Uganda ranking 141 out of 180 on the 2024 Corruption Perceptions Index, is eroding trust. Public discourse is reflecting this divide, with some praising Museveni’s infrastructure projects and economic stability, while others are arguing it is masking inequality and unfulfilled promises.

Looking ahead, Musevenomics is standing at a crossroads. The anticipated oil boom in 2025 could be propelling Uganda toward middle-income status, but global energy transitions and environmental concerns are posing risks. Investments in the digital economy, like the National Backbone Infrastructure, are signaling modernization, yet digital inclusion is remaining limited in rural areas. Regional integration through the East African Community and the African Continental Free Trade Area is offering new opportunities, but addressing youth unemployment and inequality is remaining critical to sustaining progress.

Musevenomics is representing a bold, pragmatic approach that is lifting Uganda from the ashes of conflict to a growing economy with regional influence. Its blend of security, liberalization, and social inclusion is delivering tangible results, but contradictions like cronyism and incomplete structural change are raising questions about its long-term impact. For those watching Uganda’s journey, Musevenomics is both a story of resilience and a reminder that economic transformation is a complex, ongoing endeavor. To dive deeper, explore reports from the World Bank or Uganda Bureau of Statistics for detailed insights.

President Yoweri Kaguta Museveni has announced potential sweeping reforms in Uganda’s labour sector, focusing on establishing a minimum wage, phasing out casual labour, and tightening oversight of employment agencies. Speaking at the International Labour Day celebrations on May 2, 2025, at Nakaale Grounds in Nakapiripirit District, the President outlined a vision for inclusive job creation rooted in wealth generation. The event, themed “Consolidating on the Gains of the Parish Development Model (PDM) for Increased Productivity and Inclusive Job Creation,” underscored the government’s commitment to economic transformation.

President Museveni revealed that the Cabinet will revisit critical labour issues in June 2025, following discussions with workers at State House, Entebbe. “We talked about the minimum wage, the tripartite arrangement, and the issue of casual labour,” he said. “We are also going to look into employment agencies that exploit workers by standing between them and employers.” He emphasized a sector-by-sector approach to ensure practical and consultative solutions.

The President also criticized the reliance on foreign labour in sectors where Ugandans are qualified, questioning why foreign companies import workers when local talent is available. He pledged stricter scrutiny of institutions prioritizing foreign labour over Ugandans.

Central to Museveni’s address was the linkage between wealth creation and sustainable employment. “Jobs cannot exist without wealth,” he declared, citing the Parish Development Model (PDM) as a cornerstone of this strategy. He shared success stories of PDM beneficiaries, such as a Fort Portal entrepreneur employing 15 people through animal feed production and a Nakapiripirit farmer who transitioned from green grams to pig farming, now managing 35 pigs.

The President highlighted investments in infrastructure, including low-cost electricity, railways, affordable credit through the Uganda Development Bank (UDB), and cheaper internet, as critical enablers of wealth creation. According to the Uganda Bureau of Statistics (UBOS), Uganda’s workforce includes 1.4 million factory workers, 3.6 million in agriculture, 5 million in services, 46,000 in ICT, and 480,000 in public service, with the private sector driving significant job growth.

Museveni praised the growing peace and development in Karamoja, while condemning cattle rustling as a barrier to progress. “A real cattle lover doesn’t steal,” he quipped, emphasizing both moral and practical reasons for rejecting such practices. He urged Ugandans to embrace patriotism and Pan-Africanism to expand market opportunities. “Factories and jobs mean nothing without a market. We need East Africa and beyond,” he said, highlighting the limitations of Uganda’s internal market.

The Minister of Gender, Labour and Social Development, Hon. Betty Amongi, described Uganda’s labour force as the economy’s backbone, with 73% of workers under 30, according to the 2024 UBOS Census. She stressed the need to protect workers’ rights and enhance productive employment. Hon. Anyakun Esther, Minister of State for Labour, Employment and Industrial Relations, sought continued presidential support for the Third Decent Work Country Program (2025/26-2029/30), launched at the event, to improve working conditions and labour productivity.

Representing workers, Mr. John Oketcho of the Central Organization of Free Trade Unions (COFTU) praised Museveni’s leadership and the PDM’s role in poverty alleviation. Mr. Fred Bamwesigye of the Uganda Federation of Employers commended the NRM government for stabilizing the economy, noting Uganda’s low inflation and projected GDP growth of over 7%.

The event saw the launch of the Labour Market Information System and a Digital Job Matching System, alongside the Third Decent Work Country Program, aimed at promoting employment and workers’ rights. President Museveni also awarded medals to 61 individuals for their contributions to Uganda’s development.

Attended by dignitaries including the 3rd Deputy Prime Minister, Rt. Hon. Rukia Nakadama, ministers, MPs, and diplomats, the celebrations underscored Uganda’s commitment to a dynamic, inclusive labour market driven by wealth creation and regional integration.

As the government prepares for further discussions in June, President Museveni’s vision signals a transformative approach to labour and economic policy, with the potential to reshape Uganda’s workforce for years to come.

In a pivotal meeting at State House in Entebbe, President Yoweri Kaguta Museveni called for a transformative shift in Uganda’s approach to supporting its refugee population. He advocated for sustainable agricultural solutions instead of traditional humanitarian aid. Joined by officials from the World Food Programme (WFP), the discussions focused on reorganizing refugee settlements to maximize land use and promote economic independence through large-scale farming.

Uganda, one of the world’s leading refugee-hosting nations, currently shelters over 1.8 million displaced individuals, primarily from South Sudan, the Democratic Republic of Congo, and Burundi. President Museveni pointed out the inefficiencies of expansive refugee settlements, where scattered shelters impede productive land use. “The challenge is that most refugee settlements are spread out inefficiently, with vast areas occupied by makeshift shelters,” he said. “This hinders large-scale farming and economic activity.”

Proposing a bold restructuring, Museveni suggested creating compact, planned communities, similar to small campuses or villages, which would free up land for collective agriculture. He cited Nakivale Refugee Settlement, which spans 71 square miles, as a prime example of untapped potential. “With proper planning and investment, such land could be transformed into productive farmland that supports both refugees and host communities,” he noted. This approach, he argued, would allow refugees to grow their own food, generate surplus for sale, and reduce dependency on aid.

Museveni’s vision aligns with Uganda’s longstanding hospitality toward refugees, anchored in a Pan-African philosophy. “These people are not foreigners in the real sense,” he stated. “Many share ethnic and cultural ties with Ugandans. Our borders are artificial, drawn by colonialists. When they come here, we treat them as our own.”

WFP officials, led by Executive Director Cindy McCain, welcomed Museveni’s proposals and emphasized Uganda’s fertile land and agricultural potential. “The land here is very large and fertile,” McCain said. “As WFP, we are confident in your proposal to create agricultural opportunities.” She highlighted the potential for these initiatives to make refugee communities self-reliant, a message she pledged to convey to global donors. McCain also praised Uganda’s progressive refugee policies, describing the country as a global model. “We are impressed with how Uganda has boldly handled refugee resettlement,” she remarked. “Your government has opened its doors, showcasing your commitment to humanity and regional stability.”

Marcus Prior, WFP Country Director in Uganda, echoed McCain’s praise, commending the government’s collaboration, particularly with the Office of the Prime Minister under Hon. Eng. Hilary Onek. “We have an excellent working relationship, and that collaboration is key to our progress,” Prior stated. He also emphasized his team’s innovative approaches to resource efficiency, which ensure sustainable support for refugees. “We commend you for giving refugees a chance to rebuild their lives,” he told Museveni. “WFP will continue to explore every sustainable avenue to ensure they thrive with dignity.”

The meeting underscored a shared commitment to moving beyond emergency aid toward empowerment. As McCain noted, “We must support efforts that empower people rather than merely withdrawing aid.” With Uganda’s leadership and WFP’s partnership, the proposed agricultural reforms could redefine refugee support, fostering not just survival but also thriving communities that contribute to the nation’s economy.

The discussions, attended by WFP’s Deputy Regional Director Rukia Yacoub, Chief of Staff Meghan Latcovich, and other senior officials, signal a promising step toward sustainable refugee integration. As Uganda continues to set a global standard, the world watches and learns from its compassionate and forward-thinking approach.