Gov’t Eyes UGX29Trn in New Loans for SGR, Roads and Water as Biggest Lenders to Uganda Named

Government through the Ministry of Finance, has unveiled a schedule of projects in the pipeline, indicating plans to borrow UGX29.079 trillion from various lenders to finance 30 projects.

This includes a syndicated loan for the Standard Gauge Railway worth US$3,284,44Bn (approximately UGX12.203Trn), whose funds will be provided by three financiers.

The details are contained in the report on Public Debt, Grants, Guarantees and Other Financial Liabilities released on 39th July 2026 by the Ministry of Finance.

A scrutiny of the report indicates that Standard Chartered Bank will be Uganda’s top lender to Uganda in the coming period, with a loan portfolio of UGX3.945Trn, with the Ministry of Finance indicating that the lender is expected to provide four loans to Uganda including; the US$129.74 (UGX482,058,051,800) to fund the construction of Kidepo – Kitgum Road, a 115Km tourism road. The project expected to be spearheaded by the Ministry of Works and Transport.

The second loan that Standard Chartered Bank is lined up to provide is for the Midwestern Urban Water Supply and Sanitation Project by the Ministry of Water and Environment valued at US$269.94Million (UGX1,002,980,965,800).

Government is also negotiating with Standard Chartered Bank to fund the second phase of the development of Kampala Industrial Parks at a cost of US$352.10Million (UGX1,133,806,185,500), and if approved, the project will be implemented by Uganda Investment Authority.

The other loan that Uganda is negotiation with Standard Chartered Bank is the US$122.4Million (UGX454,785,768,000) for the construction of the Butalangu-Kapeeka-Kituuma, Kapeeka-Kisuule/Wobulenzi road project, to be implemented by the Ministry of Works and Transport.

The Ministry of Finance also indicated that discussions are ongoing with Stanbic Bank to provide a loan of US$234.73 (UGX872,155,746,100) for the Upgrading of Zombo – Paidha – Zombo- Warr – Vurra and Arua – Lia Road, a project meant to be implemented by the Ministry of Works and Transport.

Analysis of the report shows that World Bank is set to be dethroned by Standard Chartered Bank as the top lender to Uganda, with four loans lined up in its portfolio all valued at UGX3.566Trn and these include the additional financing for Integrated Water Development Project valued at US$65Million (UGX241,512,050,000) that is set to be implemented by the Ministry of Water and Environment.

However, World Bank’s influence in Uganda’s lending market can’t to be dismissed as the same report indicates that the United States-based lender account for 52.24% of the outstanding debt stock of multilateral creditors as at December 2025 followed by African Development Fund at 16.49%.

The report further reveals that World Bank earned over UGX95.085Bn in interest payment, earning it the second position after Exim Bank of China that earned UGX342.102Bn in interest payments from the Ministry of Finance.

The Ministry of Finance is also holding negotiations with the World Bank to provide additional financing for the North Eastern Road Asset Management Project, to a tune of US$145Million (UGX538,757,650,000), a project that will be managed by the Ministry of Works and Transport.

Additionally, the World Bank is expected to fund the extension of electricity from Uganda to Tanzania by providing US$250Million (UGX928,892,500,000) for the construction of the Uganda-Tanzania Transmission Line, a project that will be implemented by the Ministry of Energy and Mineral Development.

The largest loan portfolio that the World Bank is set to extend to Uganda is the Development Policy Operation by the Ministry of Finance valued at US$500 (UGX1,857,785,000,000).

Citi Bank is emerging as another top lender to Uganda with loans worth (UGX2,425,932,808,700) under negotiations. However, this figure is likely to go higher given the fact that Citi Bank is participating in the UGX15,921,105,982,900 syndicated loan for SGR.

The other loan that Citi Bank is in set to provide is that of the construction of the Hamurwa – Kerere – Kanungu (47kms) by Ministry of Works and Transport, valued at US$148.78Million (UGX552,802,504,600).

Government is also in talks with Citi Bank to fund the construction of the Kanyantorogo -Butogota – Ruhija (32kms) Road by the Ministry of Works and Transport at US$269.94Million (UGX1,000,974,558,000), while the same lender, is lined up to provide a loan for the rehabilitation and Upgrade of Urban Roads and Construction of Flyovers and Pedestrian Bridges within Kampala at a cost of US$234.73Million (UGX872,155,746,100), a project that will be implemented by Kampala Capital City Authority.

The Ministry of Finance is also negotiating with Citi Bank to provide a US$120Million (UGX445,868,400,000) loan for the design, delivery, supply and installation of various Solar Powered Irrigation Schemes.

Citi Bank is also being lined up to fund the construction of Mutundwe-Buloba-Kabulasoke-Masaka 132kV TL, Kabulasoke-Nkonge-Rugonjo-Nkenda 132kV TL at a cost of US$227.62Million (UGX 845,738,043,400), a project to be undertaken by the Ministry of Energy and Mineral Development.

Uganda has also co-opted the International Fund for Agricultural Development (IFAD), a specialized United Nations agency and major concessional lender that focuses on funding rural poverty reduction, agricultural growth, livestock infrastructure, and climate resilience initiatives to provide a loan worth US$75.8Million (UGX281,640,206,000) to provide additional financing for the National Oil Palm Project, a project that will be implemented by the Ministry of Water and Environment.

The Islamic Development Bank (IsDB) is being looked at to provide financing for the Local Economic Growth Support Project II by the Ministry of Local Government at US$119.4Million (UGX443,639,058,000).

Another lender Uganda is eying to fund some of its projects is TBC that is lined up to fund the construction of Kampala City Roads and Bridges Project at US$293.41Million (UGX 1,090,185,393,700), a project that will be undertaken by the Ministry of Works and Transport.

Government is holding talks with financier, Trade and Development Bank Group (TDB) to fund the construction of 100 District, Urban, and Community Access Roads (DUCAR) Steel Bridges at a cost of US$305.15Million (UGX1.118Trn), a project to be spearheaded by the Ministry of Works and Transport.

If negotiations materialize, China is likely to fund the upgrading of Moroto – Kotido (96.4km), Kotido – Kabong (69.2km), Karenga – Kapedo (67.5km) to a tune of US$220Million (UGX817,425,400,000).

Negotiations are also being held by the African Development Fund (AfDF) to fund the second phase of the Water Supply and Sanitation Programme by the Ministry of Water and Environment at a cost of US$21.92Million (UGX81,445,294,400).

On the other hand, the Africa Development Bank is negotiating for the implementation of the third phase of the Water Supply and Sanitation Programme at US$34.25 (UGX127,258,272,500, a project to be implemented by the Ministry of Water and Environment.

The Ministry of Finance is discussing with the India Exim Bank to increase Safe Water Coverage in Rural Areas at a cost of US$87.625Million.

Another syndicated loan in the pipeline is the US$187.78Million (UGX 325,576,821,250) for the rehabilitation of the 380 MW Kira- Nalubaale Hydro Power Plant by the Ministry of Energy and Mineral Development, and this will be provided by three lenders, including the European Union.

The Ministry of Finance is also planning to borrow US$132.27Million (UGX491,458,443,900) for upgrading of Puranga-Acholibur Road Project, while the ADB is also being earmarked to provide a loan worth US$8.22Million (UGX30,541,985,400) as additional Financing for the Uganda Rural Electrification Access, a project that will be undertaken by the Ministry of Energy and Mineral Development.

The ADB will also be sought after by Government to fund the second Uganda Rural Electrification Access Project at US$101.38Million (UGX376,684,486,600)

The Ministry of Finance is holding discussions with the OPEC Fund for International Development (OFID) to provide a loan of US$30Million (UGX111,467,100,000) to the Ministry of Local Government, while the French Government will find the only project in the health sector that will cater for the construction and Equipping Mbarara Oncology Centre by Uganda Cancer Institute at US$36.36Million (UGX135,098,125,200).

Uganda’s total public debt stands at approximately UGX 130.9 trillion (about $34.86 billion), driven by increased domestic borrowing. The debt-to-GDP ratio sits around 53% to 54%, which the government maintains is within sustainable medium-term bounds, though debt servicing consumes a major portion of national revenue.

The country’s public debt is projected to reach 60 percent of GDP by financial year 2030/2031, from the current 53 percent, which the International Monetary Fund calls sustainable, with a moderate risk of debt distress.