By Tumwine Byaruhanga
Uganda’s total public debt stood at USD 34.86 billion by December 2025, equivalent to about Shs 126.19 trillion, according to the Ministry of Finance.
Of this, external debt was recorded at USD 15.84 billion, while domestic debt stood at USD 19.02 billion. This puts the country’s debt-to-GDP ratio at about 53 percent.
The Ministry says the debt has mainly been used to finance long-term investments in infrastructure and other sectors expected to raise the country’s productive capacity.
As post-budget discussions continue, the Ministry says debate on public borrowing should not only focus on the size of the debt, but also on how the borrowed funds have been used.
Over the last 10 years, the largest share of borrowed money has gone to integrated transport infrastructure, which accounts for 31.1 percent of the spending.
Electricity infrastructure follows with 19.3 percent, while water infrastructure accounts for 10.3 percent. Agro-industrialisation has taken 9.2 percent of the borrowed funds.
Education and health infrastructure account for 7.7 percent, while housing and urban development have taken 6.3 percent. Industrial parks and industrial development account for 2 percent.
Other investments, including the national backbone infrastructure for internet connectivity, science, technology and innovation, and regional development, account for 7 percent.
The Ministry of Finance maintains that Uganda’s public debt remains sustainable and is projected to stay within manageable levels over the medium and long term.
