Uganda ‘s Public Debt Sky Rockets to U.S.$20 Billion Uganda

Uganda ‘s public debt stock had increased by 22%, according to the parliamentary committee report on the national economy and the state of indebtedness, grants, and guarantees.

Uganda ‘s debt shot up to just over U.S.$19.54 billion by the end of the financial year 2020/21, from U.S.$14 billion in 2019/20. High debt levels have contributed to high cost of living as the country’s credit profile drops.

By June 2022, Uganda ‘s debt to Gross Domestic Product ratio stood at 48.6%, a few percentage points from the agreed East Africa ceiling of 50%. The report attributed the rising debt to the deliberate effort by the government to increase public investment in infrastructure in preparation for oil production . The government is also increasing investment in other key sectors such as agriculture, energy, education, water and environment and roads.

High debt levels have contributed to high cost of living as the country’s credit profile drops. By June 2022, Uganda’s debt to Gross Domestic Product ratio stood at 48.6%, a few percentage points from the agreed East Africa ceiling of 50%.

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