DAR ES SALAAM, Dec. 30 -- AS the curtain closes on 2025, Ugandas economic story is no longer a simple tale of recovery or resilience. Instead, it is a carefully balanced narrative of solid growth colliding with rising fiscal constraints, policy experimentation and a rapidly changing tax environment.

On Christmas Eve, the World Bank released its 26th Uganda Economic update, cultivating prosperity through Agro-Industrialisation, delivering a verdict that is both encouraging and cautionary. Ugandas economy is expanding at a healthy 6.3 per cent, yet it is increasingly constrained by debt dynamics that are narrowing the states room to maneuver.

Growth accelerated modestly from 6.1 per cent last year and has been notably broad-based. Househo...