Uganda Finance Minister reports reduced Umeme buyout debt and urges lower credit costs

Uganda's Minister of Finance, Planning and Economic Development, Henry Musasizi, has reported a significant reduction in government borrowing related to the buyout of electricity distributor Umeme Company Limited. Following an assessment by the Auditor General, the government borrowed approximately US$118.39 million (about 440 billion shillings), which is roughly 38 percent less than the US$190.99 million (711 billion shillings) originally authorized by Parliament. Despite the immediate savings of about 270 billion shillings, Umeme has reserved the right to seek reconciliation regarding the final payout, potential damages, and interest.

In a separate economic development effort, Minister Musasizi met with the Uganda Bankers’ Association (UBA) to advocate for lower credit costs to support the nation’s Tenfold Growth Strategy. This strategy, known as the ATMS agenda, aims to expand Uganda’s economy from US$50 billion to US$500 billion by 2040 through agro-industrialization, tourism, mineral beneficiation, and science and technology. The Minister urged financial institutions to provide more affordable and sustainable financing to drive this transformation, noting that shilling-denominated lending rates have seen a gradual decline since April 2026.