Uganda National Advocacy Meeting and Launch of the Voices of the Indebted
Uganda’s Public Debt portfolio was further worsened by the onset of the Global COVID-19 pandemic which led to heightened expenditure at the time there was drastic decline in domestic revenue growth rate from 14.95% in FY 2018/19 to 0.81% in FY 2019/20. This was a result of very low economic activity arising from global as well as national lockdowns meant to combat the spread of COVID-19. Uganda’s Public Debt portfolio increased from US$ 15.27 billion at the end of June 2020 to US$ 23.7 billion as of June 2023. The non-concessional Borrowing and domestic debt high-cost structure have led to rising interest rate payments with 1 in 5 shillings collected in tax going to interest payments.
As part of the initiatives taken by the International Monetary Fund (IMF) to help countries, the fund allocated Special Drawing Rights (SDRs) to member countries in August 2021 to finance the fiscal deficit and boost economic recovery inter alia. However, the effective utilisation of these funds and the broader management of public debt remain critical concerns.
The rising debt levels in Uganda and Africa, including its negative effects on people, has led to a new debt movement through the Stop the Bleeding campaign (STB) that is pushing for greater responsibility in borrowing and lending, and stronger transparency, accountability, and good governance. It also demands Africa’s rightful place within the global community as a Rule Maker and Not a rule taker.
It is against this background that the Uganda Debt Network (UDN) and the African Forum and Network on Debt and Development (AFRODAD), are hosting the national advocacy meeting in Kampala Uganda on 23 May 20244. Taking place during the meeting, is the launch of the Voices of the Indebted (Uganda) and of the Stop the meeting campaign (STBc).
