Uganda Ranked 3rd in 2025 Absa Africa Financial Markets Index
The Permanent Secretary and Secretary to the Treasury (PSST) Dr. Ramathan Ggoobi has said economies are adjusting globally to tighter financial conditions, geopolitical tensions and shifting trade dynamics, adding that in this uncertainty lies opportunities especially for African economies that have invested in stability, reform institutions and deepened markets. He said Uganda determined to be among those economies.
Dr. Ggoobi made the remarks at the Absa Africa Financial Markets Index and Economic Outlook Forum at Sheraton Kampala hotel where he was the Chief Guest.
The Forum was a perfect platform to unpack the trends, risks and opportunities redefining Africa’s financial landscape. The Index evaluates 29 countries on parameters including market depth, access to foreign exchange and macroeconomic stability.
Uganda has emerged as leading financial market in East Africa, ahead of Nigeria and only behind South Africa and Mauritius on the African Continent.
Despite the global challenges, the PSST said Uganda’s economic growth is projected between 6.5% and 7% this year, an election year.
"Uganda is ranked among the fastest-growing economies not just in the region but the world and is expected to remain so in the medium term”, said Dr. Ggoobi.
Because of the prudent macroeconomic management and sustained structural reforms particularly in financial markets and regulatory frameworks, the PSST said the key results include; expansion of nominal GDP to about USD 68.4 billion this June 2026, with income per capital projected to raise to over USD 1399.
Other results include; controlled inflation averaging 3.5%, stable shilling, increased exports earnings and growth in foreign direct investment, tourism receipts and remittances.
Dr. Ggoobi highlighted the priorities to deepen the financial sector and these include: Rebuilding capital markets that provide long-term debt and equity financing, attracting venture capital that supports higher-risk innovation with lower collateral requirements, and exploring the establishment of an SME-focused stock exchange to support firms that do not meet main-board listing criteria.
He also said government is keen on capitalizing Uganda Development Bank to meet the demand for long term affordable financing.
“We are working on a mission to build a 500 billion-dollar-economy by 2040 and our strategic bets are the ATMS and enablers,” said the PSST.
Ggoobi said financial inclusion will be central to this transformation, adding that PDM has demonstrated financial inclusion with over USD 1 billion digitally delivered to citizens who were considered unreachable by traditional models.
“My message is simple. Uganda’s economic fundamentals are strong, our policy direction is clear and our opportunities are expanding. The work ahead is to deepen financial markets and sustain momentum through continued reforms and partnerships,” said Dr. Ggoobi.
He thanked Absa group and partners for creating a platform that brings together policy makers, regulators, and market leaders to reflect of Africa’s financial progress and future direction.
The Governor Bank of Uganda, Michael Atingi-Ego spoke about the Banks’ market deepening agenda to bring capital, liquidity and institutional participants into the financial system. He called upon Government to pass the pension reforms and also highlighted the role of regulators in mobilizing long-term savings.
He described the 9th edition of the Africa Financial Markets Index as an indispensable diagnostic tool for assessing Uganda’s progress. The Governor also acknowledged that monetary tightening in advanced economies and growing geopolitical fragmentation continue to create headwinds for emerging and frontier markets.
“Our biggest constraint today is not regulatory sophistication, it is capital mobilization and market depth,” said the Governor.
He noted that the recent gains in the financial markets have been supported by reforms across core market infrastructure, adding that achievements reflect collective effort across government, regulators, Parliament and market participants.
Absa Managing Director David Wandera said Uganda’s financial markets are no longer just growing but stabilizing with confidence. He said he was proud of Uganda securing the third place in 2025 Africa financial markets index, up from 4th in 2024 and from 10th when the index was launched in 2018.
“Market depth is built on trust, and trust is built through strong regulation,” said Wandera, adding that Uganda’s market progress is being driven by regulatory and policy reforms that strengthen transparency and investor protection.
