KAMPALA – The Prime Minister Dr. Ruhakana Rugunda has said that debt itself may not be a problem if it is incurred for development reasons and at affordable costs.
Rugunda was speaking at the Regional Debt Conference which brought together debt managers from Sub-Saharan Africa and other international debt experts on Wednesday, February 26 at Speke Resort Munyonyo.
He said that the conference was timely because 40% of countries in Sub-Saharan Africa are in debt distress or have a high risk of it.
The Prime Minister added that International Monetary Fund (IMF)’s record shows that the average level of total debt of Sub-Saharan African countries had risen to 55% of GDP in 2016 compared to 35% in the early 2010’s.
Rugunda said the reason for the rising debt burden can be attributed to an increasing level of investment requirements in Sub-Saharan Africa.
The Minister of State for Planning David Bahati said Uganda does not face difficulty in repaying its debts, adding that the debt levels are sustainable and the borrowing has been majorly for the development of key infrastructure projects such as roads and power plants.
The Permanent Secretary/ Secretary to Treasury, Keith Muhakanizi said the conference was an opportunity to share experiences and also strategise together on effective borrowing.