Report: Uganda Should Be Getting USD 1.7 Trillion in Climate Compensation from Rich Polluting Countries

A new report has revealed that Uganda is entitled to a staggering USD 1.7 trillion in climate compensation from wealthy, polluting nations, an amount far exceeding the country’s total foreign debt.

The report, titled “Who Owes Who? External Debts, Climate Debts, and Reparations in the Jubilee Year”, was released by ActionAid just as African leaders gather for the African Union Summit. The findings arrive amid mounting calls for industrialized nations to assume responsibility for the climate crisis and its devastating effects on vulnerable countries like Uganda. “It is time to stand up to both historic injustices and the continuing injustices that arise from the colonial international financial architecture,” ActionAid’s Country Directors across Africa said in a statement welcoming the African Union declaration of 2025 as the Year of Reparations. 

Uganda, already grappling with the fallout from climate change, faces unprecedented challenges, including severe droughts, flooding, and diminished agricultural yields. The report underscores how the nation's climate debt—an eye-watering 70 times larger than its foreign debt—reflects a broader, global economic injustice. 

According to the findings, rich nations collectively owe low- and middle-income countries a staggering USD 107 trillion in climate reparations—an amount that vastly outstrips the USD 1.45 trillion these nations owe in foreign debt. The findings make a compelling case for climate reparations, showing how Uganda, which has contributed minimally to global emissions, is paying a disproportionate price for the reckless environmental practices of wealthy nations. 

In a call to action, the report stresses the urgent need for international negotiations to ensure that countries like Uganda receive the financial support required to mitigate the impacts of climate change and build resilience against future climate shocks. In 2024, Uganda allocated only 4.88 percent of its national budget to healthcare and 8.4 percent to education, while a significant 14.3 percent went towards foreign debt repayments, placing additional pressure on the country's capacity to prioritize development. 

Simultaneously, Uganda is spending 960 million US dollars annually on debt servicing, as calculated by ActionAid, redirecting crucial resources away from essential public services. The report also underscores the deep inequities within the global financial system, with rich countries benefiting from ultra-low borrowing costs while African nations are burdened with exorbitant interest rates. 

Countries like Germany pay an average of 0.8 percent in interest rates, while African nations face rates of up to 9.8 percent. 

Arthur Larok, Secretary General of ActionAid International, condemned this disparity, stating, “It is a travesty that African nations are being crushed under the weight of foreign debt while the world’s richest countries evade their responsibility for the climate crisis and historical injustices, including colonial exploitation and unfair trade practices.” The ActionAid report reveals that in 2024, lower-income African countries paid a collective 60 billion US dollars in debt repayments, limiting their capacity to invest in healthcare, education, and climate resilience initiatives. The organization is calling for wealthy nations to pay at least 1.4 trillion US dollars annually to Africa in climate finance to compensate for the damage caused by their emissions. 

Xavier Ejoyi, Country Director of ActionAid Uganda, stressed the need for accountability, saying, that it is only fair that the countries responsible for climate change pay for the damage they have caused. “This funding could support initiatives like agroecology, which would benefit smallholder farmers and protect the environment,” said Ejoyi. Chikumbutso Ngosi, 

Young Urban Women Programme Manager at ActionAid International also highlighted the gendered impacts of the debt crisis. “Servicing external debts under IMF-imposed conditions undermines investments in critical sectors, disproportionately affecting women and girls. Meanwhile, rich countries continue to evade their debts to Africa. How is that fair?” 

The report called on African nations and global movements to advocate for the establishment of a new UN Framework Convention on Debt, replacing the current financial structure dominated by the IMF, which continues to perpetuate the cycle of debt and underdevelopment in Africa. 

With Africa’s future on the line, the report calls for a transformative overhaul of global finance, including debt cancellation as a key component of reparations for both climate damage and historical injustices. It also sends a strong message that the world’s wealthiest nations must fulfil their obligations and contribute to fostering sustainable development in Uganda and across the continent.