The International Monetary Fund plans to send a staff team to Uganda in September to resume negotiations on a new financial support programme.
IMF Resident Representative in Uganda Sébastien Walker said discussions on a new programme had been constructive but that further progress was required before an agreement could be reached. The previous IMF-supported programme expired in 2024.
The planned mission will seek to advance negotiations and establish the framework for a new arrangement between Uganda and the Fund. The size and specific terms of any potential financing have not been disclosed.
Uganda requested a new IMF programme after the expiration of its previous arrangement, which focused on rebuilding fiscal space and foreign exchange reserves while supporting economic reforms. Negotiations have continued as the government balances development spending with growing debt-servicing obligations.
The IMF said Uganda’s economy has continued to expand strongly, supported by investment, domestic demand and preparations for the start of crude oil production. Commercial oil production is expected to provide a significant boost to economic activity and export earnings once output begins.
However, the Fund has warned that Uganda’s fiscal position has weakened and that the government’s debt-servicing burden remains high. Rising interest payments are placing pressure on public finances and reducing the resources available for infrastructure and other development priorities.
Uganda has invested heavily in infrastructure ahead of oil production, including roads, pipelines and other projects linked to the country’s emerging petroleum industry. While those investments are expected to generate long-term economic benefits, they have also increased financing requirements.
A new IMF programme could provide Uganda with additional financial support while reinforcing fiscal and economic reforms. It could also help strengthen investor confidence by providing an external framework for managing public finances and maintaining macroeconomic stability.
The government is expected to face pressure to improve domestic revenue mobilisation, contain expenditure and manage borrowing as negotiations progress. Maintaining debt sustainability will likely remain a central issue in discussions with the Fund.
Uganda’s expected transition into an oil-producing economy adds another dimension to the negotiations. Increased oil revenues could eventually improve government finances, but the IMF has emphasised the need for sound fiscal management to ensure the benefits of oil production translate into sustainable economic growth.
The September mission will therefore be an important step toward determining whether Uganda and the IMF can reach an agreement on a new programme after more than two years without a Fund-supported arrangement.
If negotiations progress successfully, a new programme could provide financing and policy support while helping Uganda address its fiscal vulnerabilities as it prepares for a major expansion of its oil economy.
Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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