Rising Debt Raises Questions Over Economic Independence

What the report says

As Uganda prepares to mark 64 years since political independence, economists cited by Nile Post are questioning whether the country’s rising public debt is limiting its ability to fund national priorities on its own. The discussion centers on the gap between formal sovereignty and what analysts describe as economic independence — the ability to raise and direct enough domestic resources to shape policy choices without heavy reliance on creditors.

The article says Uganda’s public debt stood at Shs136.06 trillion at the end of June 2026, equal to 54.3% of GDP, with Shs76.32 trillion in domestic debt and Shs59.74 trillion in external debt, according to the Ministry of Finance. Economist Fred Muhumuza argues that the key issue is not only whether the country can keep up with repayments, but what those repayments mean for development spending and the government’s room to act.

Nile Post reports that debt servicing is taking a growing share of public resources, with about Shs33.4 trillion allocated to debt service in the 2026/27 budget. Economists quoted in the piece say borrowing can support growth when it finances productive investment, but warn that rising costs could crowd out spending on services and infrastructure if debt grows faster than revenues.

The broader policy message is that Uganda should strengthen domestic revenue collection, improve public investment management and ensure borrowed funds generate economic and social returns. The article places the debate in the context of Independence Day, highlighting how questions about debt sustainability are now tied to long-term economic autonomy.