Government Urged to Prioritise Debt Sustainability in Financing Decisions

What the report says

Nile Post reports that Uganda’s Ministry of Finance, Planning and Economic Development has instructed officials handling debt and cash policy to make debt sustainability a central test in future financing advice. The directive was delivered by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, during a meeting with the Directorate of Debt and Cash Policy at the ministry headquarters.

According to the report, Ggoobi said the growing burden of public debt servicing is among Uganda’s major fiscal pressures because it reduces the money available for development priorities. He urged the Directorate to protect Uganda’s standing in international financial markets, which he linked to careful debt management, and to ensure borrowing decisions support long-term growth rather than short-term financing needs.

The ministry’s message also broadened the Directorate’s expected role. Nile Post says Ggoobi asked the team not only to arrange financing, but also to provide independent, evidence-based advice, identify fiscal risks early, propose practical responses, and maintain macroeconomic stability. He also emphasized that borrowing should be pursued only when necessary and directed toward investments with strong development impact.

Maris Wanyera, the Acting Director for Debt and Cash Policy, outlined the Directorate’s priorities and said it remains committed to mobilising affordable financing for Uganda’s Tenfold Growth Strategy, according to the article. The development matters because debt servicing costs can limit government flexibility, especially when public resources are needed for infrastructure, social services, and economic growth programmes.