Govt to borrow shs18 trillion
The Ministry of Finance has revealed plans to procure additional 29 loans, valued at over Shs18 trillion in the near future to fund various public projects, amidst reports that Uganda’s public debt has grown to $24.60 billion (Shs93.38trillionn) as at end December 2023.
The details are contained in the report on public debt, grants, guarantees and other financial liabilities for financial year 2023/2024 that was released by Ministry Of Finance that highlighted several loans in the pipeline and the report will be laid before Parliament, by the Finance Minister in accordance with the Public Finance Management Act, (2015) Sections 39(4),42 (2-3) & 44(5).
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Despite announcing the halting of funding projects in Uganda following the passing of the Anti-Homosexuality Act 2023, government is still counting on the World Bank to finance the Northern Uganda Social Action Fund 4 (NUSAF-4) at US$250 million (Shs945.862 billion), and the project is expected to be overseen by Office of Prime Minister.
Government is also waiting World Bank’s Board to approve Uganda’s Learning Acceleration Program (ULEARN) worth US$150 million (Shs 567.517Bn) that is meant to be undertaken by the Ministry of Education.
In the health sector, plans are underway to secure a loan worth Euro8.5 M (Shs34.955Bn) for the establishment of a regional oncology and diagnostic center in Mbale Institute from Australia, with the project set to be managed by Uganda Cancer Institute, while talks are ongoing to secure additional funding to finance the ongoing expansion of Uganda Cancer Institute Project worth US$14 million (Shs52.968Bn).
The Ministry of Health has planned to rehabilitate Bugiri Hospital at a cost of US$20 million (Shs75.669Bn) and discussions are said to be on-going with the financier who has been identified as BADEA.
Treasury however is positive that the debt is sustainable.
"When you see that huge shs72 trillion Budget, do not get worried, we may spend just about shs40trillion and we may rollover domestic debt. The Ugandan debt is sustainable and will always be sustainable," Permanent Secretary, Ramathan Ggoobi said.
