In a recent report from the Ministry of Finance, Uganda’s debt stock increased by 5% over the last fiscal year, reaching Shs 40.6 trillion as of June 2024. This marks a significant rise from Shs 34.5 trillion in June 2023.

The government’s resource mobilization plan contributed to a rise in domestic public debt from 13% to 18%. Notably, accumulated debt through treasury bills surged from Shs 4.9 trillion to Shs 6 trillion, while bond debt rose from Shs 29.6 trillion to Shs 34.6 trillion.

The report indicated that the issuance of domestic debt escalated to Shs 15.2 trillion, reflecting a 34% increase compared to the previous year. Of this, Shs 7.4 trillion came from treasury bills, and Shs 7.8 trillion from bonds. The Central Bank Rate decreased from 10% to 9.5% during the fiscal year, affecting the yield curve.

Currently, banks hold the largest share of government debt at 40%, followed by pension and provident funds at 30%. Additionally, domestic debt servicing costs rose by Shs 3.8 trillion, reaching Shs 15.885 trillion, driven by consistent growth in net domestic financing.

Earlier this year, the Ugandan government announced plans to borrow Shs 13 trillion ($3 billion) from both external and domestic markets to finance projects for 2024 and 2025, slightly exceeding initial borrowing targets.