Uganda eyes up to $242 million from Citibank for infrastructure project

By Reuters

The Citibank logo is displayed at a branch in New York City, U.S., July 16, 2025. REUTERS/Kylie Cooper 

KAMPALA, Aug 20 (Reuters) – Uganda is looking to borrow up to €207.7 million ($242.55 million) from Citibank to help ​finance the construction of a key ‌road in the eastern part of the country, the finance ministry said late on Wednesday.

• According to a ​post on the X, Finance Minister ​Henry Musasizi told lawmakers the road was “expected ⁠to improve connectivity…and provide an alternative ​transport link between northern and southern Uganda.”
• The borrowing ​potentially adds to the East African country’s growing public debt pile, which the central bank has previously warned ​was eating up resources needed for ​spending on crucial social sectors including education and health.
• In ‌its ⁠latest Article IV Consultation report on Uganda, the IMF said the country’s debt-to-GDP ratio will rise to 55.5% in the fiscal ​year that started ​in ⁠July and projected it will climb to nearly 60% by 2030/31. ​The country was facing a “high debt ​service ⁠burden,” the Fund added.
• This month, ratings agency Fitch said Uganda’s rating, which was affirmed at “B” ⁠with a ​stable outlook, was constrained ​by rising public debt and high interest burden.

($1 = 0.8563 ​euros)

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Reporting by Elias Biryabarema; Editing by Sonia Cheema