Uganda’s public debt has climbed to Shs106 trillion, reflecting a nine percent increase from the previous year, according to the Ministry of Finance.
The ministry’s latest quarterly debt statistical bulletin, released in Kampala on Tuesday, reveals that public debt grew by Shs9 trillion over the past year. In 2023, Uganda’s debt stood at $26.56 billion (Shs96.6 trillion).
The rise is primarily attributed to increased domestic borrowing. According to the ministry, external debt currently stands at $14.60 billion (Shs53.75 trillion), while domestic debt has reached $14.46 billion (Shs53.22 trillion).
“The significant rise in domestic debt results from the government’s decision to clear all outstanding obligations to the Bank of Uganda as of June 2024 through a treasury bond issuance and increased domestic borrowing to cover the FY 2024/25 budget deficit,” the report stated.
Meanwhile, Uganda’s external debt decreased from $14.91 billion in September 2024 to $14.60 billion by December 2024. This decline was mainly due to principal payments amounting to $148.8 million and foreign exchange rate variations totaling $391.3 million.
Ms. Maris Wanyera, Acting Director of Debt and Cash Policy at the Ministry of Finance, emphasized the importance of debt transparency.
“We compile and publish quarterly public debt statistics to inform policymakers, investors, and international organizations,” she said.
She highlighted that the publication of debt data ensures accuracy, consistency, and international comparability. It also enhances transparency, accountability, and informed policy-making to support sustainable economic growth.
As Uganda’s debt burden continues to grow, economic experts warn that reliance on domestic borrowing could impact interest rates and inflation.
The government faces increasing pressure to implement measures that ensure long-term debt sustainability.
