Business 30 April 2026 Daily Monitor (Uganda)
Ssendaula: Uganda's Debt Woes Stem from Misuse, Not Borrowing Itself
Former Finance Minister Gerald Ssendaula argues that borrowing is essential for Uganda's growth but stresses that the key problem lies in how the funds are spent. He urges better utilization in productive areas like infrastructure and education to ensure repayment capacity. Source: https://www.monitor.co.ug/uganda/business/finance/former-finance-minister-gerald-ssendaula-borrowing-is-not-the-problem-misuse-is--5442630
Uganda’s rising public debt has sparked intense debates on its sustainability, with concerns over whether the country is borrowing too much. Former Finance Minister Gerald Ssendaula, who served during a key growth period, counters that borrowing is vital for a developing economy investing in infrastructure, education, and health.
Ssendaula emphasizes that the real issue is not the act of borrowing but its effective use. Funds must go into productive sectors that generate returns to support repayment, especially with Uganda’s diversifying income from coffee, gold, and upcoming oil production.
Lenders like the World Bank and IMF rigorously assess projects before approving loans, helping ensure proper use. However, Ssendaula notes that supplementary budgets, now more frequent, should be controlled to avoid poor planning, unlike the stricter oversight in his era.
Budgeting today handles a larger Shs84 trillion economy with more stakeholders and pressures, making it dynamic but needing greater discipline. During his seven-year tenure, Ssendaula managed lower budgets through transparency, donor coordination, and focus on steady growth, road networks, and education expansion.
On agriculture, he views it as private sector-led, with government aiding through research and services, explaining drops in crops like cotton due to private investment declines.
Source: Daily Monitor (Uganda)