Musasizi Assures Parliament on Sustainability as Uganda’s Public Debt Hits Shs126 Trillion
Uganda's Finance Minister Henry Musasizi defended the country's debt sustainability before Parliament as public debt reached Shs126 trillion. Despite a significant increase in debt-to-GDP ratios, the government maintains that fiscal consolidation measures will ensure long-term economic stability.
Why it matters
The report highlights the ongoing tension between infrastructure-led growth strategies and the rising costs of debt servicing in developing economies.
Finance Minister Hon. Henry Musasizi has assured Parliament that Uganda’s public debt remains sustainable over the medium to long term, despite a sharp rise in the country’s debt stock.
Musasizi, accompanied by technical officials from the Ministry of Finance, Planning and Economic Development, appeared before the Parliamentary Committee on the National Economy to brief MPs on Uganda’s public debt position, debt sustainability, external financing, contingent liabilities and domestic arrears.
According to the Minister, Uganda’s total public debt stock rose by 19.96%, from USD29.06 billion (Shs105.17 trillion) at the end of December 2024 to USD34.86 billion (Shs126.16 trillion) by December 2025.
Of the total debt, USD15.84 billion was external debt, while USD19.02 billion was domestic debt.
Musasizi attributed the increase largely to higher domestic borrowing to finance the fiscal deficit, as well as continued investment in strategic infrastructure projects intended to support economic transformation and long-term growth.
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