Uganda's total public debt has increased by 26.2% in fiscal year 2024/2025, with the government having intensified its domestic borrowing to meet its financing needs, according to an annual report by the Ministry of Finance published on Friday.

According to this report, public debt total of the East African country amounted to 32.3 billion dollars out of the twelve months ending in June, compared to $25.6 billion for the previous period.

The burden of Uganda's public debt is experiencing accelerated growth in recent years, the government of President Yoweri Museveni multiplying investments in major infrastructure projects, particularly in the energy sectors, transport and other areas.

“The orientation towards increased use of Domestic borrowing explains both the increase in the nominal stock of debt and that of its cost”, underlines the report.

The report adds that this preference for Domestic borrowing “increased debt service costs in because of the higher returns required by the local market.”