Uganda’s Economy Surges 8.5% As Oil Pipeline Nears Completion, Boosting Growth Outlook

Uganda’s economy recorded robust growth in the final quarter of 2025, underscoring rising domestic demand and sustained investment momentum, as the government also signalled major progress on its long-awaited crude export pipeline.

According to Uganda’s finance ministry, the economy expanded by 8.5 per cent in the quarter ended December, up sharply from 5.4 per cent in the same period a year earlier. The ministry attributed the stronger performance to “strong consumer demand and high activity in construction and other sectors.”

In a post on the X platform late Tuesday, the ministry further disclosed that construction of the $5 billion East African Crude Oil Pipeline (EACOP) has reached 80 per cent completion, marking a significant milestone for the country’s energy ambitions.

The 1,443-kilometre pipeline is designed to transport crude oil from Uganda’s oilfields in the west to the port of Tanga on Tanzania’s Indian Ocean coast, enabling access to international markets.

After years of delays, Uganda now expects to commence commercial oil production in the second half of 2026. The oilfields are operated by TotalEnergies SE and CNOOC Ltd.

The finance ministry added that the government projects earnings of 2.2 trillion Ugandan shillings, equivalent to $587.04 million, from oil exports in the 2026/2027 financial year.

Boluwatife Enome 

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