Uganda is in negotiations with the International Monetary Fund (IMF) for a new round of funding after the country’s previous arrangement, worth approximately $1 billion, lapsed last year.
According to a post on Tuesday from the Ministry of Finance’s X platform, Ramathan Ggoobi, the Permanent Secretary of Uganda’s Ministry of Finance stated that the new program is expected to be presented to the IMF’s board after Uganda’s general elections, which are scheduled for early next year.
Ggoobi, confirmed the ongoing discussions. The previous Extended Credit Facility (ECF) program, which was approved in June 2021 to support the country’s post-COVID-19 recovery and boost economic growth, expired in mid-2024. While the program was in effect, Uganda received about $870 million of the total committed funds.
The move to secure a new funding program comes as the East African nation grapples with a rising public debt. The country’s total public debt increased to $29.1 billion in 2024, representing 52.1% of its GDP.
The IMF’s decision not to disburse the full amount of the previous ECF program was attributed to “program implementation challenges compounded by external funding constraints,” as noted by the IMF in September 2024 when the program expired.
The negotiations for a new ECF are a critical step for Uganda as it seeks to secure affordable financing to manage its debt and address its economic challenges.
