Uganda’s Public Debt Hits USD 32.3 Billion but Remains Sustainable – Minister Kasaija

Uganda’s public debt has risen to USD 32.33 billion (UGX 116.21 trillion) as of June 2025, up from USD 25.63 billion (UGX 94.72 trillion) recorded a year earlier, according to Finance Minister Hon. Matia Kasaija.

Speaking during a briefing, Kasaija reassured the public and investors that despite the increase, the country’s debt-to-GDP ratio stands at 51.3%, which remains within sustainable thresholds in the short to medium term.

Domestic and External Borrowing

The minister revealed that out of the total debt stock, domestic debt accounts for USD 16.8 billion (UGX 60.34 trillion), while external debt stands at USD 15.54 billion (UGX 55.88 trillion).

He noted that domestic borrowing now represents 51.9% of the total debt stock, up from 42.9% last year.

Kasaija explained that the growth in debt mainly reflects higher external disbursements and expanded domestic borrowing aimed at financing major infrastructure projects across the country.

Economic Growth Outlook

Looking ahead, the Finance Minister projected a strong rebound for Uganda’s economy, with double-digit growth rates expected starting next year.

“This performance will support Uganda’s long-term ambition of tenfold economic growth,” Kasaija said.

Investor Confidence

While debt levels have increased, the government insists the borrowing remains strategic and aligned with the approved medium-term debt strategy. The funds are being channeled into infrastructure, energy, and other priority sectors expected to drive industrialization and private sector expansion.