Members of Parliament are set to consider government’s decision to borrow Shs1.227 trillion from the World Bank group to finance the Uganda climate smart agricultural transformation project.
The project is aimed at increasing productivity, market access and resilience of select value chains in the project area and to respond promptly and effectively to an eligible crisis or emergency.
When approved this will be the second loan the government is seeking following the World Bank’s decision to stop funding Uganda’s projects after the enactment of the Anti-Homosexuality Act 2023. The law protects the traditional family by prohibiting any form of sexual relations between persons of the same sex and the promotion of such acts.
Meanwhile, MPs will consider another Shs5 54.689 billion from the Export -Import Bank of China to finance the e-government infrastructure project phase five.
The Debt Statistical Bulletin and Public Debt Portfolio Analysis for financial year ending June 2023 under the Directorate of Debt and Cash Policy by the Ministry of Finance, Planning and Economic Development indicated that external debt increased from $12.8 billion (Shs47.915 trillion) in June 2022 to $13.79 billion in June 2023.
The domestic debt increased by $1.27 billion from $8.2 billion in June 2022 to $9.4 billion in June 2023. Consequently, external debt now constitutes 59% of the total debt stock, while domestic debt shares 41% of the same indicator.
Currently, Uganda’s public debt stands at Shs87 trillion with the report highlighting that the total public debt stock increased from $20.97 billion (Shs78.495 trillion) as of June 2022 to $23.22 billion (Shs86.918 trillion) as at the end June 2023.
