Uganda seeks $2.5 Billion in Loans for Infrastructure and Development
KAMPALA, Uganda – Uganda’s Parliament is set to consider requests for over $2.5 billion in loans from international institutions to fund infrastructure projects and bolster public services, raising concerns about the country’s growing debt burden. A plenary session is scheduled for tomorrow, October 20, 2025, presided over by Deputy Speaker Rt. Hon. Thomas Tayebwa, to debate the proposals.
The largest request is for $1.341 billion from the International development Association (IDA),a World Bank Group member,alongside a $328 million grant. These funds are earmarked for various development programs and strengthening public services. Additional borrowing requests include approximately $491 million (422.4 million euros) from Citibank to enhance agricultural productivity and construct roads connecting Jinja, Kamuli, and Bukungu, and nearly $531 million (460 million euros) from Standard Chartered Bank to finance the Karuma-Tororo power line, associated substations, and strategic oil routes.
If approved, these loans are intended to support Uganda’s national development plan and improve essential infrastructure. However, the proposed borrowing comes as the country’s public debt has already risen sharply, increasing by 26.2% to $32.3 billion for the 2024/2025 financial year, according to data from the Ministry of Finance. This increase is largely attributed to greater reliance on domestic borrowing to meet government financing needs.
The escalating debt levels raise questions about Uganda’s long-term economic sustainability, despite the potential benefits of the proposed infrastructure projects. Parliament’s decision will be closely watched by international lenders and domestic stakeholders alike.
