Henry Musasizi, the Minister of State for Finance, Planning and Economic Development (General Duties)
Health, agriculture and infrastructure projects are lined up for a much-needed financial injection following the tabling of loan requests totalling about US$ 399 million (UShs1.4 trillion).
The proposals were presented to Parliament on Wednesday, 03 September 2025, by the Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, during plenary chaired by Speaker Anita Among.
The requests include US$47.5 million for the construction and equipping of Mbale and Arua oncology centres, US$99.56 million from the International Fund for Agricultural Development (IFAD) for the Resilient Livestock Value Chain Project, and an additional US$252 million from the African Development Bank and African Development Fund for the Busega–Mpigi Expressway.
Tabling the health sector loans, Musasizi said: “I beg to lay the proposal to borrow up to euros 9.4 million from Unicredit Bank Austria for the construction and equipping of Mbale Oncology Centre and US$36.5 million from Islamic Development Bank for the construction of Arua Oncology Centre and radiotherapy equipment for the Mbale Oncology Centre.”
The Speaker reminded MPs of the constitutional requirements for loan approvals and underscored the urgency of the IFAD request.
“The deadline of signing this loan is on 12 September 2025… failure to have it processed before that would call for a cancellation. This loan has an aspect of a grant,” she said, directing the Committee on National Economy to report back on Tuesday, 07 September 2025.
All three loan proposals were referred to the Committee on National Economy for scrutiny before a final decision by the House.
The stock of Uganda’s public debt increased to USD 31.5 billion, equivalent to Shs116 trillion, by end June 2025, according to Finance Ministry.
While delivering the budget speech for FY 2025/2026 at Kololo Independence Grounds on Thursday 12th June 2025, Matia Kasaija, the Minister of Finance, Planning and Economic Development, said of the USD 31.5 billion, external debt accounts for USD 15.49 billion, equivalent to Shs 56.3 trillion, and domestic debt USD 16 billion, equivalent to Shs 59.77 trillion.
“As a ratio of GDP, our public debt is estimated at 51.26 percent, which is consistent with the Charter of Fiscal Responsibility,” Kasaija said, adding that Uganda’s debt is sustainable and is projected to remain so in the medium to long term.
The total resource envelope for FY2025/26 amounts to Shs72.37 trillion. According to Kasaija, domestic borrowing will contribute Shs 11.38 trillion; external financing for projects will contribute Shs 11.33 trillion of which Shs 2.8 trillion are grants and domestic refinancing of maturing domestic debt (new debt) will contribute Shs 10.03 trillion.
This means Uganda is set to borrow a total of Shs32.74 trillion in 2025/26.
