By Spy Uganda
Uganda’s public debt has surged to UGX116.2 trillion (US$32.3 billion) as of June 2025, marking a sharp 26.2% increase from the UGX89.5 trillion (US$25.6 billion) recorded 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 that external debt stood at UGX55.9 trillion (US$15.5 billion), while domestic debt climbed to UGX60.3 trillion (US$16.8 billion), making domestic borrowing the larger share of Uganda’s 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.
In his foreword to the bulletin, Secretary to the Treasury Ramathan Ggoobi said the publication reaffirms 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 bulletin as “a strategic tool for policy and dialogue” that would help government make evidence-based decisions and enhance public understanding of how debt supports long-term priorities.
MPs Raise Red Flags
But the rising figures have unsettled some lawmakers. Hassan Kirumira (Katikamu South), a member of Parliament’s National Economy Committee, described the borrowing trend as “alarming,” warning that the burden will 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.”
However, Nathan Byanyima (Bukanga North) disagreed, saying Uganda still needs loans to bridge its infrastructure deficit.
“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 argued. “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 a cautious approach to 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 the biggest portion at 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), with Standard Bank of South Africa holding the largest share at US$852 million, followed by AFREXIM Bank (US$341 million).
On the domestic side, debt jumped by 49%, from UGX40.6 trillion in June 2024 to UGX60.3 trillion in June 2025. Government partly attributed this to the issuance of securities worth UGX7.7 trillion to the Bank of Uganda to clear outstanding obligations.
Meanwhile, undisbursed debt declined 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.
