The government of Uganda says it plans to borrow $400 million for various agricultural and transport projects.
According to the Finance Ministry of Uganda, the money will be borrowed from several lenders including the African Development Bank (AfD) and a United Nations fund.
The announcement comes as Uganda’s opposition parties criticize the President Yoweri Museveni’s administration over rising public debt levels in recent years.
The Central Bank of Uganda has bemoaned that the cost of debt serving was mounting pressure on public revenues.
But the government says continuous borrowing is needed to fund infrastructure projects that will boost economic growth.
According to Uganda’s Finance Minister, Henry Musasizi, about $253 million of the new borrowing will be from the AfDB. The Finance Minister made this known late on Wednesday, September 3, 2025.
He says the rest of the lenders include the UN’s International Fund for Agricultural Development (IFAD), the Islamic Development Bank, and UniCredit Austria.
Data from the Finance Ministry shows that Uganda’s total public debt in 2024 stood at $29.1 billion, up 18%.
The Minister did not provide any timeline as to when the new borrowing will be done.
Source:Africa Publicity
