KAMPALA, Uganda — Uganda’s total public debt has increased from 86.779 trillion shillings in the 2022-23 financial year to 94.869 trillion shillings in the 2023-24 financial year.
As of September last year, each Ugandan carried a debt burden of 2.3 million shillings, according to Peninah Nayiga, an assistant research officer at the Uganda Debt Network.
Nayiga said that excluding domestic arrears, Uganda’s public debt reached 107 trillion shillings by September 2024, a figure higher than the government’s official estimate.
“When you divide 107 trillion shillings by the total population of 45.9 million, it means that every Ugandan is currently indebted to 2.3 million shillings,” Nayiga explained during a stakeholder dialogue on the Auditor General’s Report 2024.
The event, organized by the Westminster Foundation for Democracy, drew participants from Parliament, the Ministry of Finance and academic researchers.
Nayiga noted that approximately 20 trillion shillings are allocated to debt servicing, funds that could otherwise be directed toward crucial development programs in rural areas.
In its annual Debt Sustainability Report for the 2023-24 financial year, the Ministry of Finance, Planning and Economic Development reported that Uganda’s total public debt increased from $23.66 billion in the 2022-23 financial year to $25.59 billion in the 2023-24 financial year.
The country’s external debt rose from $14.24 billion to $14.63 billion between June 2023 and June 2024, while domestic debt grew from $9.43 billion to $10.96 billion over the same period.
As a percentage of GDP, public debt showed a slight downward trend, decreasing from 47.41% in June 2023 to 46.8% in June 2024.
However, when measured in present value terms, the stock of public debt increased to 40.4% of GDP, up from 36.7% in the previous financial year, largely due to the rise in domestic debt, which lacks concessionality.
Lillian Paporu, the woman member of Parliament for Arua District, emphasized that national budget planning should be based on realistic assessments of available resources.
“We need technocrats to provide active guidance to ministers, preventing the inclusion of unfunded programs that lead to excessive borrowing,” Paporu said.
Gilbert Musinguzi, the quality assurance manager at Uganda Debt Network, recommended that the government reduce domestic borrowing due to high-interest rates that crowd out private lending.
Musinguzi also advocated for the effective and transparent management of oil revenues to reduce dependence on debt financing.
The Finance Ministry projects that Uganda’s debt-to-GDP ratio will rise to 52.7% by June 2025 and peak at 53% in the 2025-26 financial year before gradually declining.
Nayiga suggested that increasing export earnings through enhanced agricultural production and other exportable goods, as well as strengthening the Parish Development Model, are key strategies for minimizing heavy public borrowing.
