Overview:

Uganda’s debt nears $32B as Parliament considers five new loan requests totaling $2.2B for roads and key infrastructure projects. Read the details of the borrowing plan.

KAMPALA, Uganda— Uganda’s government is seeking parliamentary approval to borrow an additional 8.28 trillion shillings (approximately $2.2 billion) from domestic and international lenders, a move that would further balloon the nation’s public debt.

The loan requests, scheduled for consideration on Monday, come as data from the Finance Ministry showed Uganda’s total public debt reached 116.2 trillion shillings ($32.3 billion) as of June 2025, representing a 26.2% increase in one year.

The government is asking Parliament to approve five separate loans and grants intended to finance major infrastructure and social development projects. These include:

  • World Bank Group ($1.34 billion loan, $328.3 million in grants): Funds sought from the International Development Association (IDA) would go toward several projects, including the fourth phase of the Northern Uganda Social Action Fund (NUSAF IV), the second phase of the Development Response to Displacement Impacts Project (DRDIP II), and the Uganda Cities and Municipalities Infrastructure Development (UCMID) Program.
  • Citi Bank ($436.4 million combined): Two separate loans from Citi Bank would finance agricultural development and the upgrade of key road networks.
    • $212 million (789.15 billion shillings) for phase one of a project to enhance agricultural production and quality.
    • $252.7 million (941.46 billion shillings) for the construction and design of the Jinja-Mbulamuti-Kamuli-Bukungu Road and roads within Jinja City.
  • Standard Chartered Bank ($508.5 million combined): The bank would provide two loans for critical infrastructure:
    • $376 million (1.39 trillion shillings) to finance the construction of the 400kv Karuma-Tororo double circuit transmission line.
    • $125 million (473.06 billion shillings) for the construction of roads in the Ntoroko district, part of the oil roads package.

The timing of the requests is notable, as they come just before parliamentary nominations scheduled for Oct. 22-23. Parliament had previously approved a 72.376 trillion shilling national budget for the 2025-26 financial year, which included intentions to borrow 32.075 trillion shillings, equivalent to 44.3% of the total budget.

John Bosco Ikojo, chairperson of the Parliament’s Committee on National Economy, confirmed the urgency of the matter, stating he received administrative communication from Speaker Anita Among on Oct. 14 to consider the loan requests while the house was in recess, pending a full presentation to lawmakers upon resumption.