KAMPALA, Oct 20 (Reuters) - Uganda plans to borrow $2.34
billion from several lenders, including the World Bank, Standard
Chartered ( SCBFF ) and Citi, to finance infrastructure projects in energy
and other sectors, according to a parliamentary document seen by
Reuters.
The country's rising public debt has triggered concern among
opposition politicians, analysts and the central bank, which has
warned that high debt servicing costs are diverting resources
from essential social services.
The document, posted on the X platform by parliament late on
Sunday, showed the government intends to source the bulk of the
new borrowing - $1.34 billion - from the World Bank. The
remainder would come from Citi and Standard Chartered ( SCBFF ).
Finance Minister Matia Kasaija is expected to present the
loan request to lawmakers on Monday.
The funds will be used for projects including an electricity
transmission line and roads in the Albertine region, where
Uganda is developing oil fields.
Uganda's total public debt rose 26.2% to $32.3 billion in
the 2024/25 financial year from the previous period, driven by
increased domestic borrowing to meet financing needs, according
to finance ministry data.
In June the World Bank said it would resume funding to
Uganda, nearly two years after the global lender suspended new
financing in response to the country's anti-LGBT law that
imposes penalties including death and life imprisonment.
(Reporting by Elias Biryabarema; Editing by Bate Felix)