By David Mwanje
Uganda’s economy posted mixed results in August 2026, with household spending and business registrations rising, while investment and export earnings declined.
Figures from the Ministry of Finance, Planning and Economic Development’s Microeconomic Indicator Dashboard show household final consumption expenditure increased by 4.7 percent, from Shs36.1 trillion in the third quarter of the 2025/26 financial year to Shs37.8 trillion in the fourth quarter.
The increase came as food prices continued to weigh on household budgets.
Inflation for food and non-alcoholic beverages rose by 0.5 percent in August, compared with a 0.5 percent decline in July. Food inflation increased by 0.6 percent, while Energy, Fuels and Utilities inflation slowed from 2.9 percent in July to 0.2 percent in August.
Liquid energy fuel inflation increased by 0.1 percent, largely due to slight increases in the prices of diesel and liquefied petroleum gas.
Investment, however, declined during the period.
Gross fixed capital formation fell by 1.9 percent, from Shs14.46 trillion in the third quarter to Shs14.19 trillion in the fourth quarter of the 2025/26 financial year.
Export earnings also dropped by 6.4 percent, from Shs17.25 trillion to Shs16.15 trillion.
Uganda’s trade deficit, however, narrowed sharply in July, falling by 64.9 percent from US$597.93 million in June to US$210.03 million.
The improvement came as earnings from coffee and gold increased. Coffee receipts rose to US$204.94 million, while gold brought in US$788.45 million.
Business registrations also increased, with the number of new businesses rising from 2,092 in July to 2,142 in August.
On the Uganda Securities Exchange, the All Share Index rose by five percent to 2,248.47 points, helped by gains in National Insurance Corporation Holdings and Bank of Baroda Uganda.
The National Social Security Fund also reported a 26 percent increase in assets under management, reaching Shs32.8 trillion in the 2025/26 financial year.
Attention is also turning to tourism and hospitality as Uganda prepares to co-host the 2027 Africa Cup of Nations with Kenya and Tanzania.
The Ministry of Finance expects the tournament to increase demand for accommodation and other tourism services as teams, officials and supporters travel across the region.
Government wants the national average hotel occupancy rate to rise from 53.2 percent in the 2024/25 financial year to 55.3 percent by 2029/30.
For now, occupancy remains under pressure.
Hotel occupancy fell from 52.1 percent between January and April 2025 to 49.8 percent during the same period in 2026.
Kampala recorded the highest occupancy rate at 63.8 percent, while the Eastern Region had the lowest at 34 percent.
New hotels are also entering the market ahead of an expected increase in visitor numbers.
The Kampala Marriott Hotel and Executive Apartments in Nsambya has added 181 guestrooms and suites and 96 serviced apartments, alongside restaurants, bars and conference facilities.
The hotel has also created more than 350 direct jobs.
With AFCON approaching, investment is continuing in hotels, roads, stadia, training facilities and other tourism infrastructure, as Uganda prepares for an expected increase in visitors in 2027.
