By HAN News Desk
KAMPALA — Uganda is set to borrow $608 million from international lenders to finance major infrastructure projects, according to a government document presented to parliament on Tuesday.
Of the total borrowing, $448 million is expected to come from an Asian development bank, the document, seen by Reuters, indicated. The remaining $160 million is likely to be sourced from other international lenders, though specific institutions have not yet been disclosed.
The funds are earmarked for a variety of infrastructure initiatives, including the construction and upgrading of roads, expansion of electricity generation and distribution networks, improvement of water supply systems, and other public service projects. Government officials say these projects aim to stimulate economic growth, reduce regional development disparities, and improve the quality of life for Ugandans.
Uganda has increasingly turned to external financing in recent years to fund major development projects, as domestic resources have proven insufficient to meet the country’s growing infrastructure needs. The government’s borrowing strategy reflects its ambition to accelerate economic development while addressing longstanding gaps in transportation, energy, and water sectors.
The borrowing plan will now undergo parliamentary scrutiny, where lawmakers are expected to review its terms and assess potential economic implications. Analysts warn that while infrastructure investment is critical for development, Uganda’s rising public debt — which has surged in the past decade — poses a challenge.
“Managing these loans effectively is key to ensuring that the debt remains sustainable,” said an economic analyst based in Kampala. “If the borrowed funds are channeled into productive infrastructure projects, they could boost growth and generate revenue to service the debt. But mismanagement could deepen fiscal vulnerabilities.”
This planned borrowing comes amid broader efforts by the Ugandan government to attract foreign investment and enhance economic resilience. Officials emphasize that careful project selection and transparent financial management will be essential to maximize the benefits of the new funds.
