ENTEBBE, Uganda (UGNEWSLINE) — President Yoweri Kaguta Museveni has defended his government’s economic transformation record, citing the growth of Uganda’s economy from approximately $3.9 billion in 1986 to $69.3 billion, while setting a target of nearly $74 billion by June 2027.
Addressing Uganda’s 64th Independence Day celebrations on Friday, October 9, 2026, in a virtual event held from State House, Entebbe, Museveni said the country’s next phase of development would depend on accelerated industrialization, value addition, increased household incomes and greater investment in locally produced goods.
The celebrations were held under the theme, “Embracing Our Sovereignty with Hope and Visionary Leadership,” as Uganda marked 64 years since gaining independence from Britain on October 9, 1962.
Museveni attributed much of the country’s economic decline in the early post-independence years to political instability, conflict and deteriorating economic conditions before the National Resistance Movement (NRM) government took power in 1986.
“First of all, I congratulate all Ugandans on this occasion of 64 years of Independence. Those 64 years, some of the years were wasted between 1962 and 1986. We had 24 years of conflict and decline and fighting,” Museveni said.
He said Uganda’s economy had fallen to approximately $3.9 billion by 1986, forcing his government to embark on a phased recovery programme that has since expanded the country’s productive capacity.
According to the President, the government’s long-term economic strategy has moved through five phases: minimum recovery, expansion, diversification, value addition and the development of a knowledge-based economy.
Museveni argued that Uganda inherited a narrow economic structure under colonial rule, with much of its production concentrated in a limited range of agricultural commodities and exports, leaving a significant portion of the population outside the formal money economy.
“The British left a small cash economy of 3Ts and 3Cs, including copper, cotton and coffee, tobacco, tourism and tea,” he said.
He added that the regime of former president Idi Amin further weakened the economy, leaving several productive sectors in decline by the time the NRM took power.
“When Idi Amin came, he destroyed this small money economy. By the time I came in, out of the 3Cs and 3Ts, copper had collapsed, cotton was okay, coffee was struggling, tourism had collapsed, tea had collapsed. It was only tobacco that was struggling,” he said.
Museveni said the government’s initial priority was to restore production in sectors that had collapsed before expanding existing activities and diversifying the economy into new areas.
He cited the recovery of tea production, which he said had increased from three million kilogrammes to 60 million kilogrammes, while coffee production had risen from approximately three million bags to nine million bags. He also pointed to the revival of cotton and tourism as part of the country’s economic recovery.
The President said Uganda needed to move beyond traditional cash crops and commercialise a broader range of agricultural products, including milk, fruits, maize, beans, bananas, millet and fish.
He argued that these products had significant potential to generate household incomes, create employment and supply raw materials to domestic industries if farmers were better organised and connected to markets.
Recalling his experience under colonial rule, Museveni said local milk producers had struggled to access commercial markets even when imported milk products were available in shops.
“I was a milk man, but my milk wasn’t in the shops under the colonial system,” he said.
He maintained that expanding commercial agriculture and linking farmers to processing industries would help reduce dependence on a narrow range of traditional exports while strengthening household incomes and domestic production.
Museveni identified value addition as one of the most important priorities in Uganda’s pursuit of economic independence, arguing that exporting raw materials limits the income producers can earn from their products.
He said the country had made progress in processing cotton, milk, bananas, coffee and fruits but needed to expand these activities to retain a greater share of the value generated from locally produced commodities.
“When you add value, you get much more money than when you sell raw materials,” he said.
Using coffee as an example, the President explained that a kilogramme of raw coffee could fetch approximately $2, while processed products could command substantially higher prices depending on the product and market.
He argued that companies and countries involved in roasting, grinding, packaging and marketing often capture a significant share of the earnings generated along global commodity supply chains.
“This is the battle we are engaged in, value addition,” Museveni said, describing industrial processing as a strategic priority for job creation, wealth retention and the financing of Uganda’s development.
The President also pointed to science, technology and innovation as increasingly important drivers of economic growth, identifying the knowledge economy as the fifth phase of the country’s transformation strategy.
He cited electric vehicle manufacturing, pharmaceuticals, computers and other knowledge-intensive products as areas in which Uganda was seeking to build its production capacity.
“There are products which are products of knowledge, science, and that’s where we have started moving. Uganda is making electric vehicles. We are now using knowledge to produce wealth,” he said.
Museveni said Uganda’s long-term economic prospects would depend on its ability to develop technological capacity, train skilled workers and establish industries capable of producing higher-value goods. He added that oil production, alongside continued industrial expansion, was expected to contribute to the projected growth of the economy to nearly $74 billion by June 2027.
However, he acknowledged that weaknesses in the transport system remained a major obstacle to economic efficiency, pointing to traffic congestion, heavy cargo transported by road and the movement of petroleum products by tanker trucks.
“One of the gaps we shall have to deal with is the transport system, now it’s akatogo, the traffic jam,” he said.
Museveni said the government was working with Kenya on petroleum pipeline infrastructure to reduce reliance on road transport for fuel. He also highlighted plans to rehabilitate the existing metre-gauge railway, develop the Standard Gauge Railway and improve water transport as part of efforts to establish a more integrated transport network.
He said proposed railway connections to western Uganda and the mineral-rich Karamoja sub-region would also improve access to areas with deposits of marble, limestone and gold.
According to Museveni, inefficiencies in the current transport system cost Uganda approximately $1 billion annually. He argued that improved transport infrastructure would reduce logistics costs, facilitate the movement of goods and make locally produced commodities more competitive.
Beyond national economic growth, the President emphasized the need to ensure that individual households participate in commercial economic activity and benefit from government wealth-creation programmes.
He said Operation Wealth Creation had increased the proportion of Ugandans participating in the money economy from 32 per cent to 61 per cent, while the Parish Development Model had raised the figure further to 67 per cent.
Museveni challenged political, religious and cultural leaders to assess economic conditions in their respective parishes and identify households that remained outside commercial production.
He cited Kisozi, where he said he had observed widespread poverty during a visit in 1990, but where approximately 90 per cent of households were now participating in the money economy.
The President also recounted the experience of Deziranta Tumusiime from Rubirizi, whom he said had not owned productive assets before benefiting from the Parish Development Model.
He argued that poverty reduction should not be measured solely through national economic indicators but should also reflect whether individual households had acquired productive assets and established sustainable sources of income.
Museveni said the government would continue supporting households through coffee and fruit seedlings, dairy production, pasture development, piggery, poultry and fish farming. He said the interventions were intended to bring the remaining 33 per cent of the population outside the money economy into productive commercial activity.
During the celebrations, Museveni was decorated with the Order of the Commander-in-Chief, Uganda Prisons Service Medal, in recognition of his leadership and contribution to peace, security and the development of the Uganda Prisons Service.
The award also recognized the service’s involvement in large-scale production, including cotton growing, to support food security, import substitution and self-reliance, as well as government efforts to procure locally manufactured furniture from the service and improve staff accommodation.
The medal was presented by Deputy Chief Justice Moses Kawumi Kazibwe on behalf of the Presidential Awards Committee, chaired by Hajjat Zamina Malole.
Vice President Jessica Alupo also congratulated Ugandans on the independence anniversary, praising the country’s progress in stability, peace, unity and development under Museveni’s leadership.
She highlighted the government’s emphasis on inclusivity and women’s empowerment, pledging that women leaders would continue supporting national development programmes. Alupo also commended the government’s 10-fold growth strategy, which identifies priority sectors for expanding economic activity and improving household incomes.
Minister for the Presidency Milly Babalanda said the independence anniversary was an opportunity to reflect on Uganda’s history, honour those who fought for freedom and recognise the responsibilities associated with sovereignty.
She paid tribute to historical figures, including Omukama Kabalega of Bunyoro and Kabaka Mwanga, alongside other patriots who contributed to the struggle for independence.
“Uganda’s Independence wasn’t achieved on a silver plate,” Babalanda said.
She argued that political independence represented only the first stage of liberation, adding that economic and strategic independence remained central to the country’s development ambitions. She said Uganda was pursuing a transition from exporting raw materials to producing value-added goods.
At least 19 other people, including six women, were decorated during the celebrations in recognition of their contributions to the country. Among them were Commissioner General of Prisons Dr Johnson Byabashaija, Kampala Parents’ School founder Edward Kasole Bwerere Lwanga, Deputy Commander of the Air Force Major General David Isimbwa and Chief of Staff of the Land Forces Major General Francis Bagonza.
Attorney General Dr Sam Mayanja also used the occasion to launch his book, The Odyssey in the Uganda Land Cobwebs, which examines land matters in Uganda.
The celebrations were attended physically by a select group of invited guests, while other Ugandans followed the proceedings through Uganda Broadcasting Corporation and other media houses across the country.
