Blog
Balancing Growth and Stability in 2025
The Uganda Economic Update report provides a broader perspective on this landscape. It estimates that growth for FY23/24 will be 6%, up from 5.3%, driven by a rebound in agriculture, oil-related construction, and a services sector buoyed by telecommunications and trade.
Uganda’s financial landscape is a vibrant yet complex mix of fintech innovation, cautious monetary policy, and ambitious economic goals. From the bustling markets of Kampala to the rural fields in the north, the nation finds itself at a pivotal moment poised for growth while navigating challenges that test its resilience.
At the forefront of this financial evolution is the fintech sector, driven by the remarkable success of mobile money. Platforms like MTN Mobile Money and Airtel Money have transformed basic phones into powerful financial tools, reaching millions who were previously excluded from traditional banking services. By 2025, mobile money transactions have outpaced the formal economy, accounting for over 90% of GDP. This phenomenon extends beyond mere cash transfers; partnerships with banks have resulted in micro-loans and digital savings accounts, empowering individuals such as a boda boda driver in Kampala to repair his motorcycle or a savings group in Masaka to secure its funds. Additionally, new fintech players are emerging, offering asset financing and digital platforms for community savings, creating a diverse and thriving ecosystem. This boom, celebrated widely on March 6, reflects a surge in digital transactions fueled by expanding mobile networks and a push towards digitalization that is reshaping how Ugandans live and work.
However, this fintech flourish unfolds against a backdrop of stringent monetary policy. The Bank of Uganda has maintained its key lending rate at 10% since February 6, 2025, a decision made with caution in light of global uncertainties such as volatile oil prices and supply chain disruptions. The Uganda Economic Update report characterizes 2023/24 as a challenging year for businesses, with tight policy driving up borrowing costs and limiting access to credit. Core inflation, which reached 4.2% in January 2025 and is projected to remain between 4% and 5% this year, reinforces this cautious approach keeping prices in check but leaving businesses struggling with high loan costs. As of March 6, no changes to the interest rate have been reported, suggesting a continuation of this stability. While it offers predictability, it also provides little relief. Businesses ranging from small traders to manufacturers face a difficult choice: reduce operations or pass increased costs onto consumers, a trend evidenced by six consecutive months of rising output charges.
The Uganda Economic Update report provides a broader perspective on this landscape. It estimates that growth for FY23/24 will be 6%, up from 5.3%, driven by a rebound in agriculture, oil-related construction, and a services sector buoyed by telecommunications and trade. Industry and services lead the way, contributing 25% and 44% to GDP, respectively, while agriculture despite employing the majority of Ugandans continues to contend with climate-related challenges. Looking ahead, growth is projected at 6.2% for FY24/25, potentially reaching 7% as oil production begins later in the year. This aligns with an ambitious vision to achieve a $59.3 billion economy by June 2025, as targeted earlier this year. Yet, risks remain: high debt levels, weak domestic revenue, and poverty still affecting 40% of the population pose threats to this trajectory.
The financial system has shown resilience. A cybersecurity breach in February 2025 resulted in the theft of $21 million from the central bank, revealing vulnerabilities, yet fintech’s decentralized structure ensured that mobile money transactions continued uninterrupted. Currently, no major financial crises dominate the news cycle, although the repercussions of that breach may still be felt. At the same time, the private sector is showing signs of recovery, with improved business conditions reported on March 6, a potential nod to the buoyancy of fintech and the stability of monetary policy.
Uganda’s financial landscape in 2025 presents a study in contrasts. Mobile money and fintech innovations are rewriting the rules, driving financial inclusion and economic activity at an unprecedented pace. Nonetheless, tight monetary policy and structural challenges such as gaps in rural connectivity and high borrowing costs temper this progress, requiring resilience from both businesses and citizens. With oil production on the horizon and a youthful population eager for opportunities, the nation stands at a crossroads between promise and peril. As March 6 unfolds, Uganda is a country in motion, stable and growing, yet ever vigilant of the challenges that could tip the balance.
Politics
Deepening Uganda-Tanzania Relations Focus on Energy and Regional Peace
The East African Crude Oil Pipeline (EACOP) remains on track, with oil transportation expected to begin in July 2026.
In a significant step toward enhanced bilateral relations, Ugandan President Yoweri Kaguta Museveni visited Tanzania to hold high-level talks with President Samia Suluhu Hassan. The discussions, held in Dar es Salaam, centered on strengthening cooperation in energy development, trade facilitation, infrastructure, and regional peace. While the agenda covered a broad spectrum of mutual interests, the spotlight was firmly on the energy sector, particularly the East African Crude Oil Pipeline (EACOP) and related initiatives that promise to transform the economic landscapes of both nations.
During a joint press briefing following the bilateral meetings, President Samia announced that the two leaders had reviewed the progress of key energy infrastructure projects. She emphasized that the EACOP project remains on track, with oil transportation slated to commence in July 2026. This 1,443-kilometer pipeline, stretching from Uganda’s Albertine Graben to the Tanzanian port of Tanga, represents a cornerstone of East Africa’s energy ambitions, enabling Uganda to export its crude oil reserves for the first time.
The EACOP, a joint venture involving TotalEnergies, China National Offshore Oil Corporation (CNOOC), and the governments of Uganda and Tanzania, is not just a conduit for oil but a catalyst for regional economic integration. President Samia highlighted additional cooperative ventures, including plans for a gas pipeline from Tanzania to Uganda and a refined oil pipeline from Uganda to Tanga. These projects position Tanzania as a vital export corridor for Uganda’s petroleum products, fostering shared prosperity through joint energy production aimed at meeting domestic demands while tapping into regional and international markets.
Building on this momentum, recent developments underscore the project’s commitment to local empowerment and innovation. Just weeks before the presidential summit, on January 30, 2026, EACOP hosted its first Supplier Development Forum of the year at the Sheraton Hotel in Kampala. The event drew over 200 in-person attendees and more than 800 online participants, showcasing robust interest from Ugandan businesses in the project’s commissioning and operations phases.
EACOP Deputy Managing Director John Bosco Habumugisha stressed that local content is integral to the project’s vision, urging Ugandan companies to seize opportunities in specialized equipment, technical services, and procurement. Presentations from industry experts, including Kamal Bouzalmata (Commissioning Manager) and Christophe Carmon (Deputy Field Operations Director), outlined avenues for sustainable engagement, emphasizing collaboration with Tier One contractors and adherence to high standards.
Jimmy Mugerwa from the Industry Enhancement Centre highlighted how such initiatives extend benefits to local communities through capacity building, job creation, and technology transfer. The forum reinforced EACOP’s role in bolstering national content, with the pipeline’s construction combined with Uganda’s Tilenga and Kingfisher upstream projects expected to generate substantial tax revenues for both host governments, create thousands of jobs, and enhance the trade corridor between Uganda and Tanzania.
Innovation is at the heart of EACOP’s design, setting it apart as a forward-thinking infrastructure project. One standout feature is the integration of fibre optic cables with an advanced detection and analytical system for continuous monitoring. This technology enables early detection of soil movements or landslides, identifies potential intrusions along the pipeline’s right-of-way, detects temperature variations signaling leaks or exposures, and allows for sectional isolation via in-line block valves to minimize environmental risks.
Equally impressive is EACOP’s hybrid power generation system, which combines grid connections from Tanzania and Uganda with battery banks, a solar farm at the Tanga terminal, and backup combustion engines. This setup achieves at least a 30% reduction in carbon footprint compared to traditional systems. The 4MWp solar farm, spanning an area equivalent to two football pitches and comprising 6,200 panels, along with battery energy storage systems (BESS) to handle grid instabilities, exemplifies the project’s environmental stewardship. An advanced Electrical Management System (EMS) ensures seamless integration of these diverse power sources, supporting reliable operations across pumping stations and terminal facilities.
Beyond energy, the leaders addressed trade and logistics enhancements. President Samia noted efforts to improve Ugandan traders’ access to Tanzanian ports like Tanga and Dar es Salaam, including requests for extended railway connectivity into Uganda to streamline cargo movement. Both sides committed to eliminating persistent non-tariff barriers, recognizing that such measures will accelerate economic growth and fortify the East African regional market.

On regional peace and security, the discussions focused on strategies for stability in the Great Lakes Region, with plans for dialogue processes to resolve ongoing conflicts. President Museveni echoed this sentiment, stressing the need to protect Africa’s hard-won independence through economic resilience and unity. He highlighted strategic security as a priority, noting that Uganda and Tanzania had tackled several tactical issues during the talks. Additionally, the leaders explored industrial specialization, with Tanzania leading in locomotive manufacturing and Uganda in textiles, to leverage complementary strengths.
In his remarks, President Museveni framed these collaborations as a continuation of Africa’s liberation struggle, emphasizing that true prosperity stems from producing and selling goods competitively to generate citizen income. He warned against external pressures from powerful nations, underscoring that Africa’s response hinges on internal strength and cohesion.
President Samia warmly welcomed Museveni, calling Tanzania his “home” and congratulating him on the National Resistance Movement’s recent electoral victory, crediting it to the party’s clear ideology and manifesto. She reaffirmed Tanzania’s dedication to close partnership with Uganda.
As the two nations move forward, the Museveni-Samia summit signals a renewed era of collaboration, with the energy sector, particularly the innovative and economically transformative EACOP, poised to drive sustainable development across East Africa. This partnership not only bolsters bilateral ties but also contributes to the broader goal of regional integration and self-reliance.
Politics
Museveni Announces Game-Changing New International Airports in Kigezi and Mbarara as Uganda Celebrates 45 Years of Tarehe Sita
President Museveni praised the UPDF for ensuring peaceful elections and announced major airport developments: Kisoro Airport expansion, a new international tourism airport in Kigezi, and a large trade-focused airport in Mbarara City expected to exceed Entebbe in size. “Peace is secured. Now the skies open for tourism and business,” he stated during the 45th Tarehe Sita Anniversary in Kabale.
President Yoweri Kaguta Museveni has praised the Uganda People’s Defence Forces (UPDF) and other security agencies for their exemplary role in maintaining peace and stability during the recent general elections, which facilitated a secure democratic process. Speaking at the 45th Tarehe Sita Anniversary commemoration in Kabale Municipality, the President emphasized that their efforts have not only safeguarded the nation but have also laid the groundwork for accelerated socio-economic transformation. This includes significant infrastructure developments, such as new and expanded airports in the southwestern region.
The event, held at the National Teachers’ College (NTC) grounds under the theme “Defending the Gains of the Revolution and Honouring the Sacrifices of the Freedom Fighters: A Call for National Unity, Peace, and Socio-Economic Transformation,” marked the historic launch of Uganda’s Liberation War on February 6, 1981. On that day, 43 National Resistance Army patriots, armed with only 27 rifles, attacked Kabamba barracks, sparking the revolutionary path that has shaped modern Uganda.
President Museveni, accompanied by First Lady and Minister of Education and Sports Maama Janet Museveni, praised the security forces for neutralizing attempts to disrupt the elections. “I want to salute the UPDF and other security forces for the robust security they provided during the recent elections. They did a commendable job,” he stated. He noted that their quick responses thwarted troublemakers, allowing Ugandans to conduct successful and peaceful polls. The President also extended special thanks to the people of Kigezi and the nation for their overwhelming support of the National Resistance Movement (NRM) during the elections.
In a forward-looking address, Museveni linked the revolutionary legacy of Tarehe Sita to Uganda’s current progress toward becoming a high middle-income country. He emphasized the importance of national unity and wealth creation, assuring residents of Kigezi that the region stands to benefit significantly from tourism, commercial agriculture, and manufacturing.
Central to his vision for the region’s future is a bold initiative to improve aviation infrastructure to unlock economic potential. The President confirmed that Kisoro Airport is currently being expanded to better serve visitors to the area’s renowned attractions. He also announced plans for an additional international airport in the Kigezi sub-region, specifically noting land offered by businessman Amos Nzeyi in Kabale District, dedicated to enhancing tourism. This new facility aims to facilitate direct flights for tourists, eliminating the need for long road journeys from Entebbe.
Furthermore, Museveni revealed ambitious plans for a major new international airport in Mbarara City, focused on trade and business. He described this project as a game-changer that would surpass Entebbe International Airport in scale and capacity, enabling direct links particularly with partners in East Asia (such as China) and South America (including Brazil and Argentina). With partnerships already in discussion, this development positions southwestern Uganda as a strategic hub for international commerce, reducing travel times and attracting investment.
These airport initiatives signal a transformative phase for Uganda’s economy. By decentralizing air connectivity beyond Entebbe, the government aims to stimulate regional growth, enhance export opportunities in agriculture and minerals, and make tourism more accessible in areas rich in natural wonders like volcanoes, lakes, and national parks.
The ceremony also featured remarks from key figures. Defence Minister Hon. Jacob Oboth-Oboth congratulated the President on his re-election, while Chief of Defence Forces Gen. Muhoozi Kainerugaba pledged the UPDF’s continued loyalty to advance socio-economic goals and regional security. Gen. Muhoozi affirmed the country’s overall peace, describing the recent elections as the most decisive and trouble-free since 1996.
Awards were presented to distinguished officers for their contributions to liberation and national development, including the inaugural CDF Award for outstanding junior officer Lt. Moses Odongo, who received Shs 10 million and a certificate.
As Uganda commemorates 45 years since the spark of its revolution, President Museveni’s remarks underscore a commitment to building on past sacrifices. With peace secured and infrastructure such as these new airports on the horizon, the focus now shifts to translating stability into prosperity; opening the skies for tourism in Kigezi and trade across the southwest, driving the nation toward its high middle-income ambitions.
Health
DEI Biopharma’s CRISPR Platform Promises Affordable, Universal Gene Therapy in fight against Sickle Cell Disease.
Ugandan biotech pioneer Dr. Matthias Magoola and DEI Biopharma have unveiled a game-changing CRISPR-based gene therapy platform for sickle cell disease. By targeting a universal genetic switch to reactivate fetal hemoglobin, this standardized approach promises affordable, scalable treatment for all patients; potentially the first “generic” gene therapy for a monogenic disease. A major step toward equitable access in Africa and beyond, especially as Uganda ramps up national SCD prevention efforts.
In a significant advancement for global health equity, DEI Biopharma, a Uganda-based biotechnology firm, has unveiled a pioneering CRISPR-based gene therapy platform for sickle cell disease (SCD). Invented by the company’s founder and CEO, Dr. Matthias Magoola, this innovative approach targets a universal genetic switch to reactivate fetal hemoglobin, offering a scalable and patient-independent solution that could transform access to curative treatments, particularly in resource-limited regions like sub-Saharan Africa.
Sickle cell disease, a genetic blood disorder affecting millions worldwide, disproportionately impacts populations in Africa, where over 75% of global cases occur. In Uganda alone, an estimated 20,000 children are born with SCD each year, with many not surviving past their fifth birthday due to limited access to screening, treatment, and management. Recent initiatives underscore the urgency: In October 2025, Uganda’s Health Minister, Dr. Jane Ruth Aceng, launched the National Sickle Cell Prevention and Management Scale-Up Programme in Lira City, highlighting the Lango region’s highest prevalence based on nationwide surveillance; the first of its kind in Africa. This effort included establishing a National Taskforce for SCD prevention, integrating services into non-communicable disease frameworks, and receiving donations like 20,000 newborn screening kits and hydroxyurea doses from international partners.
Compounding the challenge is the prevalence of the sickle cell trait (SCT), the carrier state that can pass the disease to offspring. A 2022 study among secondary school students in Kampala revealed that 5.8% carried SCT, yet knowledge levels were only moderate, with 60.4% of participants showing basic understanding of screening and inheritance. Attitudes toward testing were largely negative (67%), influenced by fears of stigma, pain, and relationship impacts. Only 1.5% had been previously tested, and factors like knowing a partner’s status or religious affiliation (e.g., Anglicans were twice as likely to screen) played key roles in uptake. The study emphasized the need for comprehensive health education targeting adolescents to boost screening and prevent new cases, aligning with Uganda’s push for institutionalized SCD services.
Against this backdrop, DEI Biopharma’s platform emerges as a game-changer, addressing not just the biological underpinnings of SCD but also the systemic barriers to equitable care.
Traditional gene therapies for SCD often focus on correcting the specific HBB gene mutation responsible for the sickle-shaped red blood cells that cause pain crises, organ damage, and reduced life expectancy. These methods require personalized designs or donor matching, driving up costs and limiting scalability, issues acutely felt in low- and middle-income countries where infrastructure for advanced treatments is scarce.
DEI Biopharma’s CRISPR platform shifts the paradigm by targeting a conserved enhancer of the BCL11A gene, a master regulator that suppresses fetal hemoglobin (HbF) production after birth. By editing this regulatory element, the therapy reactivates HbF, which inhibits the polymerization of sickle hemoglobin and ameliorates symptoms across all SCD genotypes, including HbSS, HbSC, and HbS/β-thalassemia. This “universal genetic switch” eliminates the need for mutation-specific interventions, allowing for a single, standardized product applicable to any patient.
“This invention was designed from the beginning to solve not only the biology of sickle cell disease, but also the access problem,” said Dr. Matthias Magoola. “By targeting a universal genetic switch rather than the sickle mutation itself, we can manufacture a single, standardized gene-editing product applicable to all patients. This opens the door to what we believe can become the first scalable, first-in-line generic gene therapy platform for a monogenic disease.”
Key advantages include:
- Patient Independence: The therapy edits a non-variable DNA sequence shared by all humans, bypassing the need for individualized guide RNAs or donor cells.
- Scalable Manufacturing: Standardized production and quality control reduce costs, supporting both ex vivo (cell-based) and in vivo (direct body) delivery methods.
- Broad Applicability: Effective regardless of the patient’s specific mutation, making it suitable for diverse populations.
This model draws parallels to generic drugs, where once regulatory exclusivities expire, the same composition can be produced at scale and distributed affordably. DEI Biopharma envisions this as a “new category of standardized, reproducible gene-editing therapeutics,” potentially democratizing access in regions like Uganda, where SCD surveillance and screening programs are expanding but curative options remain out of reach.
The platform is protected by a comprehensive patent covering CRISPR compositions, guide RNAs, delivery systems, and therapeutic methods. Preclinical work is underway, evaluating editing efficiency, HbF induction durability, and safety in biological models. DEI Biopharma plans strategic partnerships, regulatory engagements, and phased clinical trials adhering to international standards.
“Sickle cell disease disproportionately affects populations that have historically been last to benefit from medical innovation,” Magoola added. “Our objective is to change that equation by making advanced gene therapy manufacturable, distributable, and affordable at global scale.”
This breakthrough aligns with Uganda’s national efforts, such as the integration of SCD into health systems and calls for community mobilization. By enhancing HbF levels, the therapy could reduce disease severity, complementing preventive measures like newborn screening and genetic counseling. The Kampala study highlighted that while 85% of students wanted to know their status and 88.5% supported testing, barriers like cost and stigma persist; challenges that affordable, universal therapies could help overcome.
About DEI Biopharma
Founded by Dr. Matthias Magoola, DEI Biopharma is dedicated to high-impact, affordable therapies for unmet needs. With a focus on vaccines, biologics, and gene-based medicines, the company leverages innovative science and global partnerships to bridge access gaps in underserved markets.
As Uganda leads Africa in SCD surveillance and prevention, innovations like DEI Biopharma’s platform offer hope for a future where this debilitating disease is not just managed but cured equitably. By addressing both scientific and socioeconomic hurdles, this development could mark a turning point in the global fight against SCD.
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