Uganda is preparing to borrow about UGX29.079 trillion from a range of local and international financiers to fund 30 major projects, according to a new Ministry of Finance report. The planned borrowing covers infrastructure and development programmes in roads, railways, water, energy, agriculture and other sectors, as government continues to pursue large-scale investments amid rising public debt.At the centre of the borrowing programme is the long-awaited Standard Gauge Railway, which could attract a syndicated loan of about US$3.284 billion, equivalent to approximately UGX12.2 trillion.
The financing is expected to come from three lenders, making the railway one of the most expensive projects in Uganda’s current borrowing pipeline.Standard Chartered Bank is positioning itself as one of the country’s biggest prospective lenders, with several large loans under consideration. These include financing for the 115-kilometre Kidepo–Kitgum tourism road, the Midwestern Urban Water Supply and Sanitation Project, the second phase of Kampala Industrial Parks and the Butalangu–Kapeeka–Kituuma and Kapeeka–Kisuule/Wobulenzi road projects.Citi Bank is also emerging as a major player in Uganda’s planned borrowing programme, with financing under discussion for several strategic projects. These include roads in western Uganda, Kampala’s urban roads and proposed flyovers and pedestrian bridges, solar-powered irrigation schemes, as well as major electricity transmission projects. The bank is also expected to participate in the huge syndicated financing arrangement for the Standard Gauge Railway.
The World Bank remains one of Uganda’s most influential development financiers despite the growing involvement of commercial banks. By December 2025, it accounted for 52.24 percent of Uganda’s outstanding debt owed to multilateral creditors. The institution is also being considered for additional financing for road development, electricity transmission and a major Development Policy Operation estimated at US$500 million.Other lenders are being courted for projects across the country. These include the International Fund for Agricultural Development, Islamic Development Bank, Trade and Development Bank, African Development Fund, India Exim Bank and OPEC Fund. Proposed financing ranges from rural water and electricity projects to bridges, agricultural programmes and major road corridors in northern and eastern Uganda.Energy and health are also featuring prominently in the borrowing plans. Government is seeking financing for electricity transmission lines, rural electrification and the rehabilitation of the 380MW Kira–Nalubaale Hydropower Plant.
In the health sector, France is expected to finance construction and equipping of the Mbarara Oncology Centre, a project estimated at US$36.36 million.The scale of the planned borrowing comes as Uganda’s public debt has climbed to approximately UGX130.9 trillion, equivalent to about US$34.86 billion. Although government considers the debt level manageable, debt servicing is consuming a significant share of national revenue. With the debt-to-GDP ratio projected to approach 60 percent by the 2030/31 financial year, the latest borrowing plans are likely to fuel renewed debate over whether Uganda can accelerate infrastructure development without placing heavier financial obligations on future generations.
