Uganda Finance Minister assures Parliament of debt sustainability

Uganda’s Finance Minister Henry Musasizi has assured Parliament that the nation’s rising public debt remains sustainable over the medium to long term. Briefing the Parliamentary Committee on the National Economy, Musasizi reported that total public debt rose 19.96 percent, increasing from USD 29.06 billion at the end of December 2024 to USD 34.86 billion by December 2025.

Of the total debt stock, USD 19.02 billion is domestic and USD 15.84 billion is external. The Minister attributed the increase to higher domestic borrowing to cover the fiscal deficit and ongoing funding for strategic infrastructure projects. The debt-to-GDP ratio also climbed from 46.86 percent in June 2024 to 50.90 percent in June 2025.

Musasizi argued that sustainability should be measured by the economy’s capacity to service the debt rather than the nominal figure alone. To manage these obligations, the government is implementing fiscal consolidation measures, including improved domestic revenue mobilization, expenditure rationalization, and leveraging anticipated oil revenues.