By Ssenkayi Marvin Ezra
Uganda has been ranked third on the African continent in the 2025 Absa Africa Financial Markets Index, reaffirming the country’s growing stature as a stable, resilient, and reform-oriented financial market. The ranking places Uganda ahead of several larger economies and positions it as East Africa’s leading financial market, trailing only South Africa and Mauritius across the continent.
The announcement was made during the Absa Africa Financial Markets Index and Economic Outlook Forum held at Sheraton Kampala. The high-level forum brought together policymakers, regulators, financial institutions, investors, and development partners to assess Africa’s financial markets against the backdrop of global economic uncertainty. The event was officiated by the Permanent Secretary and Secretary to the Treasury (PSST), Dr Ramathan Ggoobi, who served as Chief Guest.
In his keynote address, Dr Ggoobi observed that the global economy continues to adjust to tighter financial conditions, heightened geopolitical tensions, and shifting trade dynamics. While these challenges have increased uncertainty across markets, he emphasised that they also present opportunities for African economies that have prioritised macroeconomic stability, institutional reform, and market development. He noted that Uganda is determined to position itself among economies that are resilient, reform-driven, and capable of attracting long-term investment despite external shocks.
The Absa Africa Financial Markets Index, now in its ninth edition, evaluates 29 African countries across key indicators including market depth, access to foreign exchange, macroeconomic stability, legal and regulatory frameworks, and transparency. Uganda’s strong performance reflects sustained reforms in financial markets and regulatory systems implemented over the past decade, supported by consistent policy direction and improved coordination among institutions.
Dr Ggoobi revealed that despite global headwinds, Uganda’s economic growth is projected to range between 6.5 per cent and 7 per cent in the current financial year, which also coincides with an election cycle. He noted that Uganda remains among the fastest-growing economies not only in the region but globally, with growth expected to remain strong in the medium term. This outlook, he said, is underpinned by prudent fiscal and monetary management, improved governance, and sustained structural reforms, particularly in financial regulation and market oversight.
Key economic indicators further illustrate this progress. Uganda’s nominal GDP is projected to expand to approximately USD 68.4 billion by June 2026, while income per capita is expected to rise to over USD 1,399. Inflation remains well contained at an average of 3.5 per cent, supported by a stable Uganda shilling, growing export earnings, increased foreign direct investment, rising tourism receipts, and robust remittance inflows.
Looking ahead, Dr Ggoobi outlined government priorities aimed at further deepening Uganda’s financial markets. These include rebuilding capital markets to provide long-term debt and equity financing, attracting venture capital to support innovation-driven enterprises, and exploring the establishment of a small and medium enterprises-focused stock exchange to cater for firms that may not meet main-board listing requirements. He also reaffirmed government’s commitment to capitalising the Uganda Development Bank to meet growing demand for affordable, long-term financing as the economy expands.
He added that financial inclusion remains central to Uganda’s development agenda, citing the Parish Development Model as a practical demonstration of inclusive finance. Through the programme, more than USD 1 billion has been digitally delivered to citizens previously excluded from the formal financial system, helping to integrate them into the money economy and support grassroots economic transformation.
The Governor of the Bank of Uganda, Michael Atingi-Ego, underscored the importance of capital mobilisation and market depth, describing them as the most pressing constraints facing Uganda’s financial markets today. He noted that while regulatory frameworks have improved significantly, pension reforms and the mobilisation of long-term domestic savings remain critical to supporting deeper and more liquid markets.
Absa Managing Director David Wandera welcomed Uganda’s improved ranking, noting the country’s rise from 10th place in 2018 to third in 2025. He attributed this progress to sustained regulatory and policy reforms that enhance transparency, strengthen investor protection, and build market confidence. Uganda’s performance in the 2025 Index reflects a decade of deliberate reforms and signals growing confidence in the country’s financial markets amid persistent global uncertainty.