Timeline: Uganda's Public Debt Surge — From 2020 to 2026 and What It Means for Citizens
On Tuesday, Kampala’s Finance Ministry released a statement announcing a new $500 million loan from the African Development Bank to upgrade the Mbarara-Kasese road. The loan carries a five‑year maturity and a 4% interest rate, adding to an already heavy debt burden. Uganda’s public debt now exceeds $12 billion, a figure that represents roughly 70% of its gross domestic product. This escalation threatens the country’s ability to fund essential services and invest in future growth.
What Happened: The Debt Accumulation Trail
In 2020, the Ugandan government approved a $3 billion infrastructure package that included the Kampala Northern Bypass Highway and the Mbarara-Kasese road upgrade. The Ministry secured a $2 billion loan from the African Development Bank, followed by a $1 billion tranche from the African Export‑Import Bank in 2021. By 2023, additional borrowing from the World Bank and the International Monetary Fund raised the total debt to $10 billion. The most recent $500 million loan, announced on 12 April 2026, is earmarked for the Mbarara-Kasese road and will mature in 2028. According to an account to Nile Post, the cumulative borrowing has increased Uganda’s debt-to-GDP ratio from 55% in 2020 to 70% today
Despite the $500 million loan representing just 0.4% of Uganda’s total GDP, it funds a single road segment that will carry more freight than the entire country’s annual coffee export value.
