Uganda plans to borrow €500 million ($568 million) from three lenders, including the African Export-Import Bank (Afreximbank), to fund infrastructure development, according to Finance Minister Matia Kasaija.
- Uganda plans to borrow €500 million from three lenders for infrastructure projects.
- The borrowing plan was approved by parliament despite concerns about rising public debt.
- Of the total, €270 million will come from Afreximbank, and €230 million from Ecobank Uganda and Development Bank of Southern Africa.
Uganda plans to borrow €500 million ($568 million) from three lenders, including the African Export-Import Bank (Afreximbank), to fund infrastructure development, according to Finance Minister Matia Kasaija.
Parliament approved the borrowing plan despite objections from opposition members who raised concerns about the country’s rising debt levels.
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Of the total amount, €270 million will come from Cairo-based Afreximbank, while the remaining €230 million will be jointly provided by Ecobank Uganda and the Development Bank of Southern Africa. However, when the funds would be disbursed was not been specified.
The country recently signed an $800 million deal with the Islamic Development Bank to fund railway, health, transport, and energy infrastructure projects.
Uganda’s mounting debt
Uganda’s public debt rose 18% last year to $29.1 billion, driven largely by increased domestic borrowing, according to the finance ministry. The mounting debt prompted a credit rating downgrade in 2024, according to Reuters.
Still, the government maintains that the loans are necessary to support economic growth through infrastructure expansion.
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A few days ago, the East African country recently joined South Sudan and the Central African Republic (CAR) to launch a landmark 1,800-kilometre regional road project to boost trade, connectivity, and economic integration across East and Central Africa.
Poor road networks and frequent border delays currently affect trade in the region, driving up costs and slowing down deliveries.
The new corridor is expected to cut delivery times, reduce logistics expenses, and enhance trade efficiency for both small-scale traders and large businesses.
