Uganda intends to borrow $608 million from lenders including Korea Export-Import Bank and South Africa’s Rand Merchant Bank to finance infrastructure projects, according to a parliament document.
The loan, comprising $448 million from RMB and the rest from Korea Export-Import Bank, requires parliamentary approval.
Uganda’s public debt rose 26.2% to $32.3 billion in the year to June, sparking concerns over debt servicing costs and diversion of resources from social services.
The government aims to develop infrastructure, but critics worry about the impact on the country’s fiscal sustainability.
