Government loans worth Shs13 trillion remain unutilised 

The stock of unused external debt rose by $500m (Shs1.8 trillion) due to sluggishness in implementation of government projects, according to the Ministry of Finance Debt Statistical Bulletin.
The Bulletin, which covers and analyses a wide range of public debt developments, indicates that debt, which government has already contracted but remains unused, rose from $3.1b (Shs11.4 trillion) in June 2023 to $3.6b (Shs13.2 trillion) due to project implementation challenges such as delayed acquisition of right of way, insufficient government counterpart funding, inadequate project preparedness and delayed achievement of conditions of effectiveness.
Data further indicates that the World Bank held the largest share of unused loans at $856m, followed by the OPEC Fund with $52.3m.
The share of unused debt among multilateral lenders grew from $2.29b to $2.96b, while that of bilateral creditors decreased from $820m to $630m.
As of June, multilateral creditors held the largest share of Uganda's external debt, accounting for 65 percent or $9.4b, while bilateral creditors made up 23 percent or $3.4b. Private banks contributed 12 percent or $1.7b.
Within multilateral lenders, the International Development Association was the largest lender, holding 50.6 percent or $4.8b of Uganda’s external debt, followed by the African Development Fund at 17 percent or $1.6b, and the International Monetary Fund at 16.3 percent or $1.5b.
Data further shows that bilateral debt was primarily sourced from Exim Bank of China, which accounted for 70.2 percent or $2.4b, while within the private banks category, Standard Bank of South Africa held the largest share, accounting for 42.1 percent or $727m.
It was followed by Afrexim Bank with 22 percent or $379.8m, while Trade and Development Bank and Standard Chartered Bank held 19.1 percent ($330.4m) and 15.7 percent ($270.7m), respectively.
Uganda’s external debt is largely held in US dollars, Euros, Japanese Yen, and the Chinese Yuan Renminbi.
The Ministry of Finance further indicates that as of June, about 64.05 percent ($9.35b) of Uganda’s external debt was contracted at fixed interest rates, which was a decrease from 67.15 percent ($9.56b) at the end of June 2023 due to an increase in the share of non-interest debt, which rose from 10.13 percent ($1.44b) to 14.96 percent ($2.18b) as a result of growth in debt contracts with the IMF, which in the period accounted for 70.4 percent ($1.5b) of non-interest debt.
As of June, the Ministry of Finance reported an increase in external debt servicing from $816.34m to $1.051b due to an increase in principal payments, interest payments, and fees for major flagship projects; and debt service for budget support loans from the Afrexim and Trade and Development Bank.
Of the $1.051b external debt service, principal payments took 64 percent ($672.96m), followed by interest payments at 34 percent ($359.89m) and 2 percent ($19.04m) for fees.
The Ministry of Finance also noted that during the period, a greater share of Uganda’s public debt (56.3 percent or $12.59b) was denominated in foreign currency, while 43.7 percent ($11b) was in local currency, which exposes the country to risks associated with foreign exchange shocks.
External debt composition
The International Development Association, which is the World Bank lending arm, holds the largest share of $4.8b, followed by Exim Bank of China ($2.4b), African Development Fund ($1.6b), and the International Monetary Fund ($1.5b). 
These after followed by Standard Bank of South Africa with $727m, Afrexim ($379.8m), Trade and Development Bank ($330.4m), and Standard Chartered Bank ($270.7m).
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