Uganda Economic Growth Hits 8.5 Percent in December Quarter
Uganda's economy grew 8.5% in the December quarter on strong demand. The $5 billion oil pipeline is 80% done with production starting later this year.
The economy of Uganda expanded by 8.5% in the quarter ending December, marking a significant acceleration from the 5.4% growth recorded during the same period in the previous year. According to the finance ministry, this robust performance was driven by strong consumer demand alongside high levels of activity in the construction and industrial sectors. Progress on the $5 billion East African Crude Oil Pipeline (EACOP) has reached 80% completion, the ministry confirmed in a recent update. The 1,443-kilometer pipeline is designed to transport crude oil from western Ugandan fields to the port of Tanga on the coast of Tanzania. This infrastructure is a cornerstone of the nation's plan to connect its energy resources to international markets. After several delays, commercial oil production is slated to begin in the second half of this year. The projects are operated by France-based TotalEnergies SE and China's CNOOC LTD-H. The government anticipates generating 2.2 trillion Ugandan shillings, or approximately $587.04 million, in revenue from oil exports during the 2026/2027 financial year.
