On October 10, 2023, Finance Minister Matia Kasaija presented a proposal in Parliament on behalf of the Ugandan government. The proposal seeks to obtain loans from various financial institutions amounting to $650 million (approximately Shs2.9 trillion) to support budgetary requirements.
The breakdown of the loan request is as follows:
| Financial Institution | Loan Amount (USD) | Equivalent in Ugandan Shillings (Shs) | Purpose |
|---|---|---|---|
| Islamic Development Bank | $295 million | Shs1.3 trillion | Upgrading of national road project |
| Organisation of the Petroleum Exporting Countries (OPEC) fund for international development | $30 million | Shs136.2 billion | Upgrading of national road project |
| International Development Association of the World Bank Group | $325 million | Shs1.5 trillion | Financing Uganda’s climate-smart agricultural transformation project |
| International Development Association of the World Bank Group (Grant) | $19.5 million | Shs88.5 billion | Financing Uganda’s climate-smart agricultural transformation project |
The proposal is currently under parliamentary review. If approved, Uganda’s public debt will rise to over $24 billion (Shs108.9 trillion), potentially causing further debt-related challenges. Currently, Uganda’s external debt stands at more than $13.6 billion (Shs61.7 trillion), constituting 31.3 percent of its Gross Domestic Product (GDP). Additionally, domestic debt amounts to over $8.4 billion (Shs38.1 trillion), equivalent to 19.3 percent of GDP, according to the International Monetary Fund (IMF).
Deputy Speaker Thomas Tayebwa has urged the Committee of National Economy, responsible for scrutinizing the loan request, to expedite the process and submit a timely report. Mr. Tayebwa stressed the importance of avoiding unnecessary delays.
While the Minister did not specify the roads to be upgraded under this loan request, some Members of Parliament, including Mr. Elija Okupa, raised concerns about the need for equal distribution of benefits across regions. These finer details will be addressed by the committee, which will subsequently report to Parliament.
