The provisional stock of Ugandas external debt, according to the report stood at US 12.2 billion with 7.14 billion disbursed. This leaves a difference of 5.06 billion committed but undisbursed debt. This means that Uganda has signed a debt commitment contract with funders but has not used the funds.
This will include USD 200 million 734 billion Shillings to be borrowed from the World Bank for upgrading health centre IIs to health centre IIIs and construction of secondary schools and USD 212 million 778 billion Shillings from The Export-Import Exim Bank of China for rural electrification projects.
The Uganda Government has earmarked Uganda shillings 2.7 trillion for debt interest payment according to the budget framework papers for the financial year 2018/2019. The Civil Society Budget Advocacy Group coordinator, Julius Mukunda, says the high percentage allocation of the budget to debt interest payment is indicative that Uganda is likely to become a poor highly indebted country again as it was 10 years ago.
The Director Debt and Cash Management at the Ministry of Finance, Maris Wanyera, has said over 60 percent of Ugandas debt made up of concessional loans that come with low interest rates and long repayment periods.
Ugandaâ€™s level of indebtedness is causing an increasing worry among a section of politicians and policy makers as the country celebrates 50 years of independence. Uganda marks fifty years of independence with what some politicians call a mountain of foreign debts amounting to about five billion US dollars.