Uganda’s public debt has risen sharply, largely driven by heavy spending in preparation for the country’s first oil production, the ministry of Finance has said.
According to the Debt Sustainability Analysis Report for the 2024/25 financial year, total public debt increased from $25.59 billion in the 2023/24 financial year to $32.24 billion as of June 30, 2025.
The ministry attributed the rise to the repayment of Bank of Uganda advances and increased development expenditure, particularly in the oil and gas sector, ahead of first oil.
Uganda’s public debt as a share of gross domestic product rose from 46.6% in June 2024 to 50.9% in June 2025.
The report projects that the debt-to-GDP ratio will peak at 55.5% by June 2026, then decline to below 50% by the 2030/31 financial year.
The ministry said Uganda remains at a moderate risk of debt distress. However, it maintained that the debt is sustainable over the medium to long term, supported by the government’s fiscal consolidation strategy.
The strategy includes domestic revenue mobilisation, expenditure rationalisation, implementation of a tenfold growth strategy, and expected revenues from oil production.
