Written By | Jovita Hasto
Minister Henry Musasizi said that in preparation for first oil, overall progress on the development of the East African Crude Oil Pipeline (EACOP) is at 80 percent
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PARLIAMENT
The Ministry of Finance has revealed that Uganda is projected to earn over UGX2.2 trillion in oil revenues in the 2026/27 financial year, marking a major milestone as the country prepares for its first commercial oil production.
Presenting the Ministry’s 2026/27 Ministerial Policy Statement before Parliament’s Committee on Finance, the Minister of State for Finance, Henry Musasizi, said a significant portion of the anticipated oil income will be used to support the national budget.
“In preparation for first oil, overall progress on the development of the East African Crude Oil Pipeline (EACOP) is at 80 percent. The Government expects about UGX2.2 trillion from oil revenues next financial year, of which UGX1.4 trillion is programmed to finance the budget,” Musasizi said.
He added that five engineering studies are currently underway to advance the oil refinery project.
PDM and Wealth Creation Gains
Musasizi highlighted progress under key government wealth creation programmes, noting that by December 2025, all Parish Development Model (PDM) SACCOs had been capitalised with an additional UGX529 billion, with each of the 10,589 verified SACCOs receiving UGX50 million as initial funding.
He said a cumulative UGX3.63 trillion has been disbursed under the Parish Revolving Fund, benefiting over 3.6 million previously unbanked Ugandans.
Under the Emyooga programme, the government disbursed more than UGX100 billion in affordable credit to over 350,000 individuals, alongside UGX76.32 billion in seed capital to 3,816 SACCOs, reaching more than 1 million beneficiaries.
“These interventions have supported the creation and maintenance of over 1.1 million jobs,” Musasizi noted.
Agriculture Financing and Insurance
The Minister further revealed that by December 2025, government had disbursed UGX40.7 billion under the Agricultural Credit Facility and UGX7.5 billion as subsidies for the Agricultural Insurance Scheme.
In total, close to 960,000 farmers have benefited from the agricultural insurance programme, aimed at mitigating risks in the sector.
Budget Allocations and Institutional Funding
For the 2026/27 financial year, the Ministry of Finance has been allocated UGX2.78 trillion. Several affiliated institutions are also set to receive funding, including:
Additionally, Enterprise Uganda has been allocated UGX26 billion, while the Microfinance Support Centre will receive UGX176.67 billion. The Uganda Development Bank is set to receive UGX415.19 billion, and Pearl Bank (formerly PostBank) will receive UGX4.086 billion.
Positive Economic Outlook
Musasizi assured lawmakers that Uganda’s economic outlook remains strong, citing sustained growth, low inflation, stable financial markets, and improving external sector performance.
“Going forward, the Ministry remains focused on addressing emerging risks, including fiscal pressures, while sustaining the gains achieved under its core mandate of sound economic management,” he said.
The projected oil revenues are expected to significantly boost government financing as Uganda moves closer to joining the ranks of oil-producing nations.
Torch Media Africa
