KAMPALA, Feb. 14 (Xinhua) -- Uganda's public debt has risen sharply, largely driven by preparations for the country's first oil production, the Ministry of Finance, Planning and Economic Development said in a report released Friday.
The Debt Sustainability Analysis Report for the 2024/25 financial year shows that total public debt increased from 25.59 billion U.S. dollars in financial year 2023/24 to 32.24 billion dollars in financial year 2024/25, which ended on June 30, 2025.
"Repayment of Bank of Uganda advances and increased development expenditure, particularly in the oil and gas sector in preparation for first oil, largely account for this rise in public debt," the report said.
Uganda's public debt as a share of gross domestic product (GDP) rose from 46.6 percent in June 2024 to 50.9 percent in June 2025. The report projects that the debt-to-GDP ratio will reach 55.5 percent by June 2026, before declining below 50 percent by the 2030/31 financial year.
The ministry said that public debt currently remains at a moderate risk of debt distress. However, it said the country's debt is sustainable over the medium to long term, supported by the government's fiscal consolidation strategy, which includes domestic revenue mobilization, expenditure rationalization, a tenfold growth strategy, and anticipated oil-related revenues. ■