KAMPALA (Reuters) -Uganda plans to borrow $2.34 billion from several lenders, including the World Bank, Standard Chartered and Citi, to finance infrastructure projects in energy and other sectors, according to a parliamentary document seen by Reuters.
The country’s rising public debt has triggered concern among opposition politicians, analysts and the central bank, which has warned that high debt servicing costs are diverting resources from essential social services.
The document, posted on the X platform by parliament late on Sunday, showed the government intends to source the bulk of the new borrowing — $1.34 billion — from the World Bank. The remainder would come from Citi and Standard Chartered.
Finance Minister Matia Kasaija is expected to present the loan request to lawmakers on Monday.
The funds will be used for projects including an electricity transmission line and roads in the Albertine region, where Uganda is developing oil fields.
Uganda’s total public debt rose 26.2% to $32.3 billion in the 2024/25 financial year from the previous period, driven by increased domestic borrowing to meet financing needs, according to finance ministry data.
In June the World Bank said it would resume funding to Uganda, nearly two years after the global lender suspended new financing in response to the country’s anti-LGBT law that imposes penalties including death and life imprisonment.
(Reporting by Elias Biryabarema; Editing by Bate Felix)
