Uganda’s external debt rises 16% to $23.9 billion

What the report says

Uganda’s external debt increased to US$23.9 billion in 2025, up 15.9% from US$9.8 billion a decade earlier, according to the World Bank’s International Debt Report 2026 cited by The Independent Uganda. The report describes the figure as debt owed to non-residents and says it includes public and publicly guaranteed borrowing, private-sector debt and short-term external obligations. The story was published from Kampala and notes that the government continues to use a mix of multilateral lenders, bilateral partners and private creditors to help fund development needs.

The article says public and publicly guaranteed debt made up the largest share at US$19.537 billion, while private nonguaranteed debt totaled US$3.738 billion and short-term debt stood at US$624 million. Among public creditors, multilateral institutions were the biggest source of financing, led by the International Development Association and the African Development Bank. China was identified as Uganda’s largest bilateral creditor, followed by France.

The report also highlights borrowing terms, saying private creditors generally charge higher interest rates and offer shorter grace periods than official lenders. It frames this as a concern for government finances as Uganda seeks funding for infrastructure, energy, industrialisation and other priorities. Separately, the World Bank data show foreign investors held US$2.8 billion in Uganda’s domestic government debt, reflecting continued demand for local securities.

The broader context is that the World Bank says developing countries’ debt burdens have continued to rise. For Uganda, the figures suggest a growing financing need alongside pressure to manage debt-service costs and maintain access to affordable external funding.