Uganda is planning to borrow 6.9 trillion shillings ($1.89 billion) from external lenders in the 2020/2021 (July-June) fiscal year to partly finance its budget.
A finance ministry budget paper seen by Reuters on Monday showed the funds will be in “form of concessional and non-concessional” credit.
The paper did not however indicate how much was borrowed in the previous financial year. It also did not reveal from whom the money would be borrowed.
President Yoweri Museveni, in power since 1986, is widely expected to seek re-election early in 2021.
Public spending typically surges in election periods in Uganda, which has some times triggered pressure on consumer prices and the local currency.
The paper said economic growth in 2020/2021 would be 6.2%, driven by higher productivity in manufacturing and agriculture and “public and private sector investment as well as regional and domestic trade.”
Uganda’s mounting public debt has been fueling concern. The International Monetary Fund has urged authorities to rein in borrowing.
