Uganda will add more than 12 trillion Ugandan shillings (about $3.1 billion) to its debt. Prime Minister Robinah Nabbanja wants top officials to meet and approve many loan plans that would pay for big infrastructure projects and public services.
She sent an urgent letter dated March 21, 2025, asking government leaders to meet on Wednesday, March 26, 2025. They'll meet at 10:00 a.m. in her office to review these loan requests and discuss related matters.
The Prime Minister listed twelve major loan proposals from lenders such as the African Development Bank, City Bank, Standard Chartered Bank, and others. These would fund new expressways, bring electricity to rural areas, improve water systems, update hospitals, and help farmers.
Some big loans include nearly 187 million euros from AfDB for the Busega-Mpigi Expressway, almost 199 million euros from City Bank for a road connecting Jinja, Mbulamuti, Kamuli, and Bukungu, plus $100 million from BADEA to strengthen the Uganda Development Bank.
The letter mentions two identical $20 million proposals for fixing Bugiri General Hospital, which might be a mistake. Nabbanja invited many important people, including the Head of Public Service, key ministry leaders, and heads of agencies like the Uganda Investment Authority and Uganda Cancer Institute.
This borrowing push comes as Uganda's debt reaches dangerous levels. Finance Ministry numbers show Uganda's total debt hit 96.1 trillion shillings ($25.2 billion) by late 2023. Foreign lenders, mostly international organizations and banks, hold over 60% of this debt.
The country's debt, compared to its economic output, stands near 50%, dangerously close to the 55% warning level set by the International Monetary Fund for poorer nations. A recent IMF analysis rated Uganda at "moderate risk of debt distress" and warned that economic shocks could make things worse.
Paying back these loans already takes more than 6 trillion shillings every year - that's over 30% of Uganda's tax money. This raises serious concerns about having enough cash left for essential needs like healthcare and schools.
Government officials claim these new loans help development and come with good terms. Critics argue that relying on borrowed money for projects that often face delays puts the country's future at risk. The upcoming meeting will likely lead to formal approval from the cabinet and parliament, despite growing worries from economists and community groups about Uganda's borrowing path.
She sent an urgent letter dated March 21, 2025, asking government leaders to meet on Wednesday, March 26, 2025. They'll meet at 10:00 a.m. in her office to review these loan requests and discuss related matters.
The Prime Minister listed twelve major loan proposals from lenders such as the African Development Bank, City Bank, Standard Chartered Bank, and others. These would fund new expressways, bring electricity to rural areas, improve water systems, update hospitals, and help farmers.
Some big loans include nearly 187 million euros from AfDB for the Busega-Mpigi Expressway, almost 199 million euros from City Bank for a road connecting Jinja, Mbulamuti, Kamuli, and Bukungu, plus $100 million from BADEA to strengthen the Uganda Development Bank.
The letter mentions two identical $20 million proposals for fixing Bugiri General Hospital, which might be a mistake. Nabbanja invited many important people, including the Head of Public Service, key ministry leaders, and heads of agencies like the Uganda Investment Authority and Uganda Cancer Institute.
This borrowing push comes as Uganda's debt reaches dangerous levels. Finance Ministry numbers show Uganda's total debt hit 96.1 trillion shillings ($25.2 billion) by late 2023. Foreign lenders, mostly international organizations and banks, hold over 60% of this debt.
The country's debt, compared to its economic output, stands near 50%, dangerously close to the 55% warning level set by the International Monetary Fund for poorer nations. A recent IMF analysis rated Uganda at "moderate risk of debt distress" and warned that economic shocks could make things worse.
Paying back these loans already takes more than 6 trillion shillings every year - that's over 30% of Uganda's tax money. This raises serious concerns about having enough cash left for essential needs like healthcare and schools.
Government officials claim these new loans help development and come with good terms. Critics argue that relying on borrowed money for projects that often face delays puts the country's future at risk. The upcoming meeting will likely lead to formal approval from the cabinet and parliament, despite growing worries from economists and community groups about Uganda's borrowing path.
