Uganda’s public debt has surged to UGX116.2 trillion (US$32.3 billion) as of June 2025, reflecting a sharp 26.2% increase from UGX89.5 trillion (US$25.6 billion) a year earlier, according to the Ministry of Finance.
The figures are contained in the latest Annual Debt Statistical Bulletin and Public Debt Portfolio Analysis published by the Directorate of Debt and Cash Policy. The report shows external debt stood at UGX55.9 trillion (US$15.5 billion), while domestic debt rose to UGX60.3 trillion (US$16.8 billion)—making domestic borrowing the dominant share of the debt portfolio.
“Uganda’s total public debt stock stood at UGX116.2 trillion (US$32.3 billion) by end-June 2025, representing 51.3% of GDP. This reflects both external and domestic financing needs to support the budget and ongoing development programs. The balance has shifted, with domestic obligations now slightly surpassing external,” the bulletin noted.
Treasury Defends Borrowing
In his foreword, Secretary to the Treasury Ramathan Ggoobi said the bulletin reaffirmed government’s commitment to transparency and prudent debt management.
“At a time when the global and domestic economic environment remains dynamic, the provision of timely and reliable debt data is vital for sustaining fiscal discipline, building investor confidence, and guiding the nation’s development agenda,” Ggoobi wrote.
He described the publication as “a strategic tool for policy and dialogue” to guide evidence-based decisions and improve public understanding of how debt supports long-term priorities.
MPs Raise Red Flags
However, the ballooning figures unsettled some lawmakers. Hassan Kirumira (Katikamu South), a member of Parliament’s National Economy Committee, called the trend “alarming,” warning that the burden would fall heavily on ordinary Ugandans.
“Each Ugandan is now indebted to the tune of UGX2.5 million to UGX3 million. Our appetite for borrowing has failed this country. We cannot continuously borrow money that we cannot pay, yet many loan-funded projects are stuck or never even kick off,” Kirumira said.
He added: “Ugandans must know that this public debt will not be paid by the current regime—it will be paid by Ugandans, whether we like it or not. Even loans borrowed during the Obote era were eventually settled by Ugandans.”
Counter Voices in Parliament
But others defended the borrowing. Nathan Byanyima (Bukanga North) argued Uganda still needs loans to bridge its infrastructure gap.
“Yes, we are borrowing, but we need these loans for service delivery—in power, the railway, and our roads. Compared to our neighbours, we are actually doing better,” Byanyima said. “The challenge is not borrowing itself, but how quickly we put the loans to use. If loans are properly utilized, they are beneficial. Ugandans should not be too worried.”
Debt Composition
The Finance Ministry attributed the slower pace of external debt growth to reduced disbursements on project loans and cautious new borrowing amid global interest rate hikes. Concessional and semi-concessional loans remain the backbone of external financing.
By June 2025, multilateral creditors held the largest share of Uganda’s external debt at 66% (US$10.3 billion). The International Development Association (IDA) accounted for US$5.3 billion, followed by the African Development Fund (US$1.7 billion) and the IMF (US$1.5 billion).
Bilateral creditors made up 23% (US$3.45 billion), dominated by the Exim Bank of China with 70.2% (US$2.3 billion) of the bilateral portfolio. Private banks accounted for 11% (US$1.8 billion), led by Standard Bank of South Africa (US$852 million) and AFREXIM Bank (US$341 million).
On the domestic side, debt rose 49%, from UGX40.6 trillion in June 2024 to UGX60.3 trillion in June 2025, partly due to the issuance of UGX7.7 trillion in securities to the Bank of Uganda to clear outstanding obligations.
Meanwhile, undisbursed debt fell from US$3.62 billion (UGX12.6 trillion) in FY2023/24 to US$3.37 billion (UGX11.8 trillion) in FY2024/25, which the Ministry linked to improved project execution and disbursements.
