“Uganda is not spared from this. Yields on government securities peaked at 12-15 % early in 2023 and the Uganda shilling has depreciated. Difficulty in raising concessional financing, coupled with a greater interest burden, signifies that fewer sources are readily available for discretionary spending, notably on improvement and climate adjust adaptation,” Ms. Karpowicz mentioned.

She insisted that the ideal course of action for the Ugandan government is boosting tax revenues, which are under regional competitors. In her assessment, this move is not only essential but can also assistance finance improvement investment although preserving governmental debt sustainability.

Also, Dr. Adam Mugume, the Executive Director of Study at the Bank of Uganda, identified the challenge Uganda’s reliance on external financing poses, stating that this constitutes a trouble as it complicates the international economic squeeze.

He stated “However, Uganda really should be capable to maneuver by means of offered that most of Uganda’s external debt is from multilateral creditors, mostly Planet Bank, IMF, and African Improvement Bank. Uganda’s exposure to non-concessional loans is to a wonderful extent restricted and as such there is restricted concern on dangers linked with rollover of maturing loans from industrial lenders.”