KAMPALA, May 30 — Uganda will take on €500 million in new loans to fund infrastructure development, Finance Minister Matia Kasaija told parliament on Thursday.
The funding will come from three lenders, with €270 million expected from the African Export-Import Bank (Afreximbank), based in Cairo, and another €230 million jointly provided by Ecobank Uganda and the Development Bank of Southern Africa. Kasaija did not indicate when the funds would be drawn.
Parliament approved the borrowing request despite objections from opposition lawmakers, who warned about the country’s ballooning debt load.
Uganda’s public debt rose sharply by 18% last year, reaching $29.1 billion, largely due to increased borrowing within the country, according to the finance ministry. The debt surge prompted a downgrade in the country’s credit rating in 2023.
Government officials maintain the new loans are necessary to support infrastructure expansion and economic growth.
