KAMPALA, Uganda — Uganda is set to become one of the fastest-growing economies in sub-Saharan Africa this year, with a projected growth rate of 6.4 percent that places it ahead of most regional competitors, according to the World Bank.
The forecast, detailed in the latest Global Economic Prospects report, indicates that Uganda will outperform neighbors such as Kenya, which is projected to grow at 4.9 percent, and Tanzania at 6.2 percent. Within the East African region, only Rwanda is expected to see a higher expansion at 7.2 percent.
The World Bank noted that the positive outlook is a result of momentum built in 2025, when the economy grew by 6.3 percent, marking its strongest performance since before the COVID-19 pandemic. This growth has been fueled by a combination of increased government spending, a recovery in household consumption, and high global prices for coffee exports.
Uganda’s growth reflects a combination of domestic demand recovery and export resilience, the report stated, highlighting the role of coffee as a primary driver of foreign exchange.
Across the broader sub-Saharan African region, economic growth is expected to firm up to 4.3 percent in 2026. This recovery is supported by easing inflation and stronger investment in commodities, particularly gold and coffee.
Despite the optimistic figures for Uganda, the World Bank warned that the regional recovery remains fragile. Growth levels across the continent are still insufficient to make a significant dent in extreme poverty, especially as many governments face tighter budgets following a decrease in international development assistance.
The report also flagged potential risks related to global trade. Specifically, it warned that the expiration of the African Growth and Opportunity Act in late 2025 could create headwinds for African nations heavily reliant on U.S. market access if the agreement is not renewed.
