CSBAG Members, AHF Uganda Cares demand for harmonized debt terms in new “Freedom from Debt campaign”

In renewed efforts against the rising debt for developing countries such as Uganda, AHF Uganda Cares together with members of The Civil Society Budget Advocacy Group (CSBAG) including SEATINI Uganda, Uganda Debt Network (UDN) and others are seeking to advance reforms calling for debt justice grounded in transparency, responsible borrowing and lending, stronger oversight of debt-financed projects, and greater citizen participation in debt governance through a new “Freedom from Debt Campaign”

CSOs want to ensure public debt supports development outcomes rather than undermining them amidst shrinking fiscal space for health, education, agriculture, social protection, and other essential services.

During the launch of the campaign on Wednesday 10^th June 2026 at CSBAG offices in Ntinda, The Country Director of AHF Uganda Cares Mr. Henry Magara said that the increasing debt burden among developing countries especially debt refinancing is undermining borrowed money’s focus on developing projects such as health, education and others.

“The Freedom from Debt campaign is sets a global position on the debt burden in developing countries. Currently more money is serving debt than health, education and other areas. This prevents countries from addressing critical needs” he said

He said when developing countries pay high interest rates on borrowed money compared to others underlines unfairness expressing a need “to address the debt injustice”  

The Executive Director of CSBAG, Mr. Julius Mukunda said that CSOs are demanding for a better debt market where developing countries are borrowing at similar interest terms globally while enhancing the management of debt by countries.

“The debt crisis is caused by the architecture for loans acquisition and loan management which is structurally unfair. Credit agencies are ranking developing countries as high risk lenders thus paying more interest than others” he said

Ms. Penina Nayiga from Uganda Debt Network (UDN) while making her remarks highlighted that the high debt repayment commitment increases more risks to developing countries calling for the protection of critical sector investments.

The African Development Bank estimates that Africa faces an annual financing gap of approximately US$1.3 trillion if it is to achieve the Sustainable Development Goals (SDGs) and the aspirations of Agenda 2063. Rising debt obligations are making it increasingly difficult for governments to mobilize the resources required to close this gap and invest in long-term development

Uganda's public debt is projected to reach approximately UGX 130 trillion in FY2026/27. Debt servicing obligations are projected to exceed UGX 33.6 trillion, including approximately UGX 14.1 trillion in interest payments and UGX 4.18 trillion in loan amortization.

Debt servicing obligations are projected to consume nearly 40 percent of domestic revenue collections, reducing fiscal space available for healthcare, education, agriculture, infrastructure, social protection, and employment creation