President Yoweri Kaguta Museveni delivered Uganda’s 2025 State of the Nation Address at the Kololo Ceremonial Grounds recently, marking the commencement of the fifth and final session of the 11th Parliament.
The address provided a comprehensive overview of the country’s current status across various sectors, highlighting significant strides in economic growth, infrastructure development, and governance.
President Museveni noted that Uganda’s economy has shown resilience amidst global pressures, with progress evident in increased export earnings, improved energy infrastructure, and ongoing efforts to enhance public service delivery and judicial reforms.
At the same time, the President acknowledged persistent challenges that continue to affect the well-being of many Ugandans.
These include the rising cost of living, widespread youth unemployment, and growing environmental concerns such as deforestation, floods, and climate change-induced disasters.
The address emphasized the need for both continued investment in development and deliberate interventions to tackle these pressing issues.
Economic Growth and Development
President Museveni reported a projected GDP growth of 6% for the financial year 2023/24, surpassing Sub-Saharan Africa’s average of 3.8% and the global average of 2.9%.
This growth is attributed to factors such as low inflation, a stable exchange rate, increased foreign direct investment, and a surge in export earnings, which rose by 38% from USD 4 billion to USD 7 billion.
The President emphasized the importance of reducing imports and enhancing local production, particularly in the textile and furniture sectors, to further strengthen the economy.
He also highlighted the success of Uganda’s agricultural strategies, notably the “4-acre model,” which has seen coffee production rise from 2.7 million bags in 2013 to 9 million bags in 2024.
Infrastructure and Energy Projects
Significant infrastructure projects are underway to support economic growth. The government is expediting the construction of the Standard Gauge Railway (SGR), starting with the Malaba to Kampala section.
Additionally, the commissioning of the Mirama–Kabale High Voltage Power Line in February 2025 aims to boost industrialization in the Kigezi region.
In collaboration with Japan, Uganda plans to commence construction of the New Karuma Bridge in June 2026, with funding of USh121 billion (US$33.2 million) provided by JICA.
Furthermore, the Uganda Heart Institute has initiated the construction of a new 250-bed cardiac hospital in Naguru, expected to be operational by the first quarter of 2027.
Oil and Gas Sector Advancements
The oil and gas sector is poised for significant developments, with commercial oil production set to begin in the fourth quarter of 2025.
The government has signed a refinery implementation agreement with UAE-based Alpha MBM Investments LLC, with construction expected to start later in 2025 and last for three years. These initiatives are anticipated to generate revenue for infrastructural and social services projects.
Social Services and Healthcare
The government has made strides in improving healthcare services. Over the past three years, 225 Health Centre IIs have been renovated and upgraded to Health Centre III.
Efforts are also underway to operationalize Mulago Super Specialized Hospital and expedite the construction of the Lubowa Specialized Hospital.
Emphasis is being placed on preventive healthcare measures, including immunization and malaria prevention.
Security and Governance
President Museveni assured Ugandans of the country’s security, noting that recent incidents of firearm misuse are being addressed promptly.
Operations such as “Operation Usalama Kwa Wote” have been effective in combating cattle theft in Karamoja, with 125 guns and 1,323 rounds of ammunition recovered since January 2023.
The President also highlighted the importance of regional integration, calling for the removal of trade barriers within the East African Community to enhance prosperity.
Challenges and Areas for Improvement
Despite these achievements, the President acknowledged persistent challenges. The high cost of living remains a concern, with fuel prices averaging Shs5,300 for a litre of diesel and Shs5,500 for a litre of petrol, leading to increased transport fares and affecting the prices of goods and services.
Youth unemployment continues to be a pressing issue, with many young Ugandans struggling to find job opportunities despite having qualifications.
Additionally, environmental concerns such as floods and landslides have caused significant damage in various regions, highlighting the need for better environmental management.
President Museveni’s 2025 State of the Nation Address outlined Uganda’s progress in economic growth, infrastructure development, and governance, while also acknowledging ongoing challenges.
The government’s commitment to addressing these issues and fostering a conducive environment for investment and development remains central to Uganda’s path toward prosperity.
