Overview:
Nayiga stated that Uganda’s public debt reached Shs107 trillion by September 2024, a higher figure than the government’s official report, which excludes certain variables.
A researcher from the Uganda Debt Network has revealed that each Ugandan is indebted to Shs2.3 million to clear the nation’s staggering Shs107 trillion public debt. Ms. Peninah Nayiga, Assistant Research Officer, disclosed this figure at a stakeholder dialogue on the Auditor General’s Report 2024, organized by WFD.
Nayiga stated that Uganda’s public debt reached Shs107 trillion by September 2024, a higher figure than the government’s official report, which excludes certain variables. She calculated this by dividing the total debt by Uganda’s population of 45.9 million. She also highlighted that Shs20 trillion is spent on debt servicing, diverting funds from crucial development programs.
The Ministry of Finance, Planning and Economic Development’s annual Debt Sustainability report, released in February 2025, placed Uganda’s total public debt at Shs94.869 trillion in FY 2023/24, up from Shs86.779 trillion in FY 2022/23. The report showed increases in both external and domestic debt.
While the debt-to-GDP ratio slightly decreased to 46.8 percent, the present value of debt increased to 40.4 percent, largely due to rising domestic debt.
The WFD dialogue, attended by parliamentarians, finance ministry officials, and researchers, addressed the impact of rising debt on budget allocations and Uganda’s creditworthiness.
MP Lillian Paporu called for realistic national budget planning based on available resources. Uganda Debt Network’s Gilbert Musinguzi recommended reducing domestic borrowing, leveraging oil revenue, strengthening public investment analysis, and minimizing supplementary budget requests.
The Finance Ministry projects Uganda’s debt-to-GDP ratio to peak at 53.0 percent in FY 2025/26 before gradually declining. They also noted that the present value of debt will peak just below the East Africa Monetary Union (EAMU) convergence criteria.
Nayiga emphasized the need to increase export earnings through agricultural production and strengthen the Parish Development Model to reduce reliance on borrowing.