Uganda to borrow €500 million for infrastructure projects despite rising debt concerns.
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.
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 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.
Still, the government maintains that the loans are necessary to support economic growth through infrastructure expansion.
Source: Africabusinessinsider
