By Spy Uganda
The Ministry of Finance has unveiled plans to borrow up to UGX 23.491 trillion from both domestic and external markets to finance major infrastructure and social service projects, with a strong focus on roads, rail transport, health, water, sanitation, and energy development across the country.
The borrowing plans are detailed in the Report on Public Debt, Grants, Guarantees and Other Financial Liabilities for the Financial Year 2024/2025, published by the Ministry of Finance in November 2025. The report outlines several large-scale projects that government has lined up for funding from various development partners and international lenders.
Among the flagship projects is the Standard Gauge Railway (SGR), for which government plans to secure €2.7 billion (approximately UGX 10.513 trillion) from the Trade and Development Bank. The project will be implemented by the Ministry of Works and Transport. According to Ministry records, the commercial contract has already been signed, and a request for approval of limited notice funding is expected to be submitted to Parliament, while discussions with other financiers continue.
Government is also negotiating a €250 million (UGX 1.051 trillion) loan from Citi Bank to finance the construction of Kampala City Roads and Bridges, a project to be implemented by Kampala Capital City Authority (KCCA). In addition, talks are ongoing for another €225 million (UGX 946.018 billion) from the same lender to support the construction and rehabilitation of four major roads: Kampala–Kalagi–Gayaza, Mbale–Bubulo–Bududa, Mbale–Nkokonjeru, and Lugazi–Buikwe–Kiyindi.
Citi Bank is also being considered for a US$120 million (UGX 432.304 billion) loan to fund the construction of the Hamurwa–Kerere–Kanungu (47km) and Kanyantorogo–Butogota–Ruhija (32km) roads.
In the water and agriculture sector, the Trade and Development Bank is being fronted to provide €222.6 million (UGX 935.664 billion) for the design, supply, and installation of solar-powered irrigation and pumping systems under a project to be implemented by the Ministry of Water and Environment.
Government also plans to borrow €214.04 million (UGX 899.911 billion) from UK Export Finance (UKEF) for the development of water supply and sanitation infrastructure in the future cities of Nakasongola, Bugade-Idudi, Alebtong, and Kamuli, pending Cabinet approval.
Additionally, negotiations are underway with the Danish Government for a €145 million (UGX 609.8 billion) loan to finance a water and sanitation project in Wakiso District, to be implemented by the National Water and Sewerage Corporation.
In the health sector, government is engaging the Islamic Development Bank (IsDB) to secure US$36.5 million (UGX 131.492 billion) for the establishment of regional oncology and diagnostic centres in Arua and Mbarara, under the supervision of the Uganda Cancer Institute. This funding would supplement earlier loans approved in November 2025, including €9.4 million (UGX 37.949 billion) from UniCredit Bank Austria for the Mbale Oncology Centre and US$36.5 million (UGX 127.742 billion) from IsDB for the Arua Oncology Centre and radiotherapy equipment for Mbale.
In the energy sector, government has lined up a US$106.4 million (UGX 383.319 billion) loan from the African Development Bank to finance the Uganda Rural Electrification Access Project, overseen by the Ministry of Energy and Mineral Development. Negotiations are also ongoing with the African Development Fund for a €73 million (UGX 306.844 billion) loan to rehabilitate the Kiira–Nalubaale Hydropower Plant.
Government is further seeking €174.1 million (UGX 731.856 billion) from Standard Chartered Bank for the Mutundwe–Buloba–Kabulasoke–Rugonjo–Nkenda power rehabilitation project, to be jointly implemented by the Ministry of Energy and Uganda Electricity Transmission Company Limited.
Several major road projects are also in the pipeline, with negotiations ongoing with China Construction Bank for multiple loans, including €316.6 million (UGX 1.33 trillion) for the upgrade of the Kapedo–Kaabong Road, €245.6 million (UGX 1.032 trillion) for the Kotido–Moroto Road, and €353.5 million (UGX 1.486 trillion) for the upgrading of the Kotido–Kaabong Road, all under the Ministry of Works and Transport.
Additionally, talks are underway with Société Générale to secure €112.7 million (UGX 473.845 billion) for the construction of the Puranga–Acholibur Road, another project to be implemented by the Ministry of Works and Transport.
The Ministry of Finance says the planned borrowing is intended to address critical infrastructure gaps, improve service delivery, and support long-term economic growth, subject to parliamentary and cabinet approvals where required.
