Ministry of Finance Reveals How Uganda’s Borrowed Funds Have Been Invested Over the Last Decade

The Ministry of Finance, Planning and Economic Development has revealed how Uganda has utilized borrowed funds over the past ten years, highlighting major investments in infrastructure, energy, agriculture, and social services as the country continues to pursue long-term economic transformation.

According to the Ministry, Uganda’s total public debt stood at USD 34.86 billion (approximately Shs 126.19 trillion) as of December 2025. Of this, external debt accounted for USD 15.84 billion, while domestic debt amounted to USD 19.02 billion, translating into a debt-to-GDP ratio of about 53 percent.

The disclosure comes amid ongoing public discussions about the country’s borrowing levels following the presentation of the national budget. Finance officials maintain that the bulk of the borrowed funds has been directed towards strategic investments designed to expand the productive capacity of the economy and support sustainable growth.

Data released by the Ministry shows that integrated transport infrastructure received the largest share of financing, accounting for 31.1 percent of total borrowed funds. The investments include road construction, rehabilitation and other transport projects intended to improve connectivity and facilitate trade.

The electricity sector received 19.3 percent of the financing, supporting power generation, transmission and distribution infrastructure aimed at increasing access to reliable electricity across the country.

Water infrastructure accounted for 10.3 percent of the borrowed funds, while 9.2 percent was invested in agro-industrialisation projects aimed at boosting agricultural productivity, value addition and job creation.

The Ministry further revealed that 7.7 percent of the funds were channeled towards education and health infrastructure, supporting the construction and upgrading of schools, hospitals and other public service facilities.

Housing and urban development projects accounted for 6.3 percent of the financing, while industrial parks and industrial development received 2 percent. An additional 7 percent was invested in other strategic sectors, including the national backbone infrastructure project to expand internet connectivity, science, technology and innovation initiatives, as well as regional development programmes.

The Ministry emphasized that Uganda’s public debt remains sustainable and is projected to remain so over the medium and long term. Officials have called for informed discussions on public borrowing, arguing that attention should not only focus on the amount borrowed but also on the impact and value of the investments financed through the debt.

As debates surrounding the country’s fiscal position continue, the government maintains that investments funded through borrowing are laying the foundation for increased productivity, industrialization and economic growth in the years ahead.