Uganda’s public debt to keep rising

Construction works underway at Karuma Dam. FILE PHOTO

What you need to know:

IMF forecasts that the ongoing ambitious infrastructure investments will result in an increase of the public debt, with total public debt projected to peak in FY2020/21, at about 50 per cent of GDP. Martin Luther Oketch assesses the impact of high debt levels on the economy

The International Monetary Fund projects that Uganda’s public debt will keep raising to 2021 due to ongoing ambitious infrastructure investment by government.
Uganda is facing a problem of infrastructure deficit, which is affecting the country’s long-term economic development and is the reason why government has scaled up investment infrastructure development by borrowing to close budget deficits for infrastructure development.

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