KAMPALA, UGANDA – Uganda’s pursuit of new loans for infrastructure and health projects has ignited a parliamentary debate over its escalating public debt, which threatens to consume a significant portion of national economic output.
Thank you for reading this post, don't forget to subscribe!During a plenary sitting on Wednesday, September 3, 2025, the State Minister for Finance, Planning and Economic Development (General Duties), Henry Ariganyira Musasizi, tabled three separate loan requests before the House.
The government is seeking parliamentary approval to borrow a total of over UGX 1.418 trillion (approximately $373 million) for the projects, a move that adds to the nation’s escalating debt portfolio and is set to undergo intense legislative scrutiny over its fiscal implications.
Minister Musasizi stated that 9.4 million euros and 36.5 million dollars will fund new oncology centres in Mbale and Arua, aimed at decongesting Kampala’s facility and improving regional cancer care access.
A further $99.6 million is requested to finance the resilience of livestock value chain projects, an initiative designed to boost the agricultural sector by supporting farmers and enhancing production.
The largest portion of the borrowing, 188.8 million euros and an additional 28.31 million euros, is intended to fund the construction of the Busega-Mpigi Expressway, a key transport infrastructure project expected to ease traffic and improve connectivity.
The fresh loan requests come at a time of significant concern over Uganda’s debt burden, which according to the 2025 Auditor General’s midterm report, stood at a staggering 106-110 trillion shillings as of mid-2025.
This figure represents more than 55% of the country’s Gross Domestic Product (GDP), pushing the nation closer to a dangerous debt threshold and raising alarms among economists about potential constraints on future fiscal flexibility and essential public spending.
The proposal was met with immediate apprehension from a section of lawmakers, led by Kira Municipality MP Ibrahim Ssemujju, who voiced strong concerns that such unchecked borrowing risks pushing the country into a state of financial distress.
They warned that Uganda is fast approaching a scenario where future loans may be used primarily to service existing debts a situation known as debt distress rather than funding new development projects that benefit the population.
The Speaker of Parliament, Rt. Hon. Anita Among, exercising caution, declined to approve the loans immediately and referred all three loan requests to the Parliament’s Committee on National Economy for further detailed scrutiny.
The committee is now tasked with evaluating the necessity, terms, and long-term financial implications of the proposed loans before returning its recommendations to the full House for a final decision.
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