Uganda has disclosed plans to borrow $1.89 billion from external lenders in the 2020/2021 July-June fiscal year to partly finance its budget.
This follows a 9% shortfall in domestic revenue collections caused by delays in implementing planned tax-generating measures, according to the country’s finance ministry.
The proposed borrowed funds will be disbursed in the form of concessional and non-concessional credit.
In recent years, China has become one of the country’s top external lenders.
The country’s economic growth in 2020/2021 will be 6.2% driven by higher productivity in manufacturing, agriculture, public and private sector investment, as well as regional and domestic trade.
However, Uganda’s mounting public debt has fuelled concerns as the
International Monetary Fund has urged authorities to rein in borrowing.