The International Monetary Fund (IMF) is preparing to send a team to Kampala in September as Uganda and the global lender seek to revive negotiations for a new financial support programme.
The planned mission comes after more than a year of discussions without an agreement, following the expiry of Uganda’s previous IMF arrangement in 2024. The government has since sought a replacement programme to support its economic management and reform agenda.
IMF Resident Representative in Uganda Sébastien Walker confirmed that a negotiation mission is being planned for September, noting that previous discussions had been constructive but that additional progress was still required before a deal could be reached.
Uganda’s previous programme was a three-year Extended Credit Facility that ran from 2021 to 2024. It provided financial support as the country worked to strengthen its economy following the disruption caused by the COVID-19 pandemic.
The renewed negotiations come shortly after the IMF completed its latest Article IV review of Uganda’s economy, with the Fund’s Executive Board approving the assessment on July 27. The review gave a largely positive assessment of economic performance but highlighted weaknesses in Uganda’s fiscal position.
Uganda’s economy expanded by 6.3 percent during the first nine months of the 2025/26 financial year, supported by strong domestic demand, relatively low inflation and increased lending to the private sector. The IMF expects growth to remain strong as the country moves closer to full-scale oil production.
However, rising debt-servicing costs and pressure on government finances remain key concerns. The IMF has urged Uganda to strengthen domestic revenue collection and gradually reduce tax exemptions as part of efforts to improve the country’s fiscal position.
The Fund has also stressed the need for stronger anti-corruption institutions, a better environment for businesses and fewer trade barriers to ensure economic growth translates into wider employment and development opportunities. The IMF projects Uganda’s economy could grow by about 7.5 percent in 2026, with inflation remaining around 4 percent as the country enters the oil era.
