Uganda: Uganda's Public Debt Surpasses Shs130tn

Uganda's public debt has crossed a critical threshold, reaching $34.86 billion (approximately Shs130.844 trillion) as of December 2025, according to official data from the Ministry of Finance. This milestone represents a significant pressure point for East Africa's second-largest economy and warrants serious consideration from European investors and businesses operating across the region. The trajectory of Uganda's debt accumulation reflects broader macroeconomic trends that have characterized the nation over the past decade. Sustained infrastructure investments, particularly in energy and transportation corridors, have driven government borrowing. While these projects—including the Standard Gauge Railway and hydroelectric developments—were intended to catalyze long-term economic growth, their financing has increasingly strained the country's fiscal position. The debt-to-GDP ratio now exceeds 50 percent, a level that development economists and international financial institutions view with considerable concern. For European investors, Uganda remains strategically important. The country serves as a gateway to the broader East African Community and possesses considerable natural resource wealth, particularly in oil, which is expected to begin commercial production within the coming years. However, the escalating debt burden introduces new risk variables into investment decision-making frameworks. Rising debt servicing costs inevitably compete with social spending and productive investments, potentially limiting the government's capacity to maintain