State Minister for Finance in Charge of General Duties, Henry Musasizi, has defended government’s latest loan requests amounting to at least UGX 1.4 trillion, dismissing claims that the borrowing drive is being rushed.
Speaking on September 4th before Parliament’s Committee on National Economy, Musasizi explained that the apparent urgency was a result of Parliament’s recess, which delayed the processing of government’s financing proposals.
“Why you see loans coming now, you know that we missed June, July and August. So, all the work which should have been done in that period is coming now. I know November we shall be away and December, we are likely to see more work coming around January,” Musasizi told MPs.
The minister was appearing to justify government’s request for a US$99.56 million (approximately UGX 352.9 billion) loan from the International Fund for Agricultural Development (IFAD). The financing is earmarked for the proposed Resilient Livestock Value Chain Project (RELIV), which seeks to modernize and strengthen Uganda’s livestock sector.
The loan is part of a broader borrowing plan tabled in Parliament on September 3rd, which includes requests from multiple financial institutions to support infrastructure, social services, and agricultural programs.
Musasizi urged lawmakers to expedite consideration of the loan applications, warning that further delays could affect the timely implementation of government projects.
His remarks come amid growing scrutiny over Uganda’s rising debt burden, with civil society groups and some MPs warning that the country’s repayment obligations are becoming unsustainable. However, government maintains that the loans are critical for financing priority development programs and boosting economic recovery.