Uganda plans to borrow $608 million from lenders including South Africa’s Rand Merchant Bank (RMB) and the Korea Export-Import Bank to fund infrastructure development, a parliamentary document showed on Tuesday.
Of the total, $448 million is expected from RMB, with the remainder from the Korean lender, according to the document seen by Reuters.
The government will seek lawmakers’ approval for the credit lines later on Tuesday, but the document did not provide details on the specific projects to be financed.
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Uganda’s growing public debt has raised concern among opposition politicians, analysts, and the central bank, which has warned that high debt servicing costs are diverting resources from essential social services.
Total public debt rose to $32.3 billion in the twelve months to June, up 26.2% from the previous period, according to finance ministry data.
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