The Government of Uganda has highlighted how borrowed funds accumulated over the last decade have been invested in key sectors aimed at transforming the country’s productive capacity and accelerating economic growth.
According to Government figures, Uganda’s total public debt stood at USD 34.86 billion (approximately Shs 126.19 trillion) by December 2025, with external debt accounting for USD 15.84 billion and domestic debt standing at USD 19.02 billion. The country’s debt-to-GDP ratio was estimated at 53 percent.
Government officials say much of the borrowed money has been directed toward strategic infrastructure and development projects designed to strengthen Uganda’s economy and improve service delivery across sectors.
The largest share of the debt-financed investments, 31.1 percent, was allocated to integrated transport infrastructure, including roads and transport networks intended to ease connectivity and facilitate trade.
Electricity infrastructure received 19.3 percent, reflecting Government’s efforts to expand access to power and support industrial growth, while 10.3 percent went into water infrastructure to improve access to safe water and sanitation services.
Investment in agro-industrialisation accounted for 9.2 percent, aimed at boosting agricultural productivity and value addition, while education and health infrastructure received 7.7 percent to strengthen service delivery in the social sectors.
Government also invested 6.3 percent in housing and urban development to support planned urbanization and better living conditions, while 2 percent was directed toward industrial parks and industrial development to spur manufacturing and job creation.
Other strategic investments, accounting for 7 percent, included the expansion of national backbone internet infrastructure, science, technology and innovation (STI), and regional development initiatives.
Government maintains that Uganda’s public debt remains sustainable and is projected to stay manageable over the medium and long term, emphasizing that borrowing has been targeted at long-term investments intended to expand economic productivity and national development.
The Ministry of Finance has encouraged Ugandan’s to engage in informed post-budget discussions focused not only on the level of borrowing but also on how the borrowed funds have been utilized to drive socio-economic transformation.
https://finance.go.ug/sites/default/files/2026-06/Budget%20Speech%20FY2026.pdf
