Uganda is seeking a new concessional lending programme from the International Monetary Fund (IMF), with Finance Minister Henry Musasizi pledging to implement policy measures needed to secure an agreement as the government works to strengthen its public finances.
Musasizi met IMF African Department Director Zeine Zeidane on October 16 during the IMF–World Bank annual meetings in Bangkok, Thailand, New Vision reported. The proposed Extended Credit Facility (ECF) remains under negotiation, with no financing amount or approval timetable announced.
Uganda's previous three-year ECF arrangement, approved in June 2021 for approximately $1bn, expired in June 2024 without completion of its final review. The IMF had disbursed about $870mn by March 2024. Discussions on a successor programme began in 2025. In August, IMF resident representative Sébastien Walker said further progress was needed to reach an agreement, with staff planning a programme negotiation mission in September.
The IMF warned in July that Uganda's fiscal deficit was projected to widen to 7.1% of GDP in FY2025/26, with public debt reaching 55.1% of GDP. It called for stronger revenue mobilisation and spending discipline to contain borrowing costs and limit pressure on private-sector credit.
Finance ministry permanent secretary Ramathan Ggoobi said Uganda aimed to raise its tax-to-GDP ratio from 14.3% in FY2025/26 to at least 20% by FY2029/30. Proposed measures to increase revenue collection would be incorporated into the 2027/28 budget framework.
Bank of Uganda Governor Michael Atingi-Ego also participated in the October 16 talks, two days after the central bank raised its benchmark interest rate by 225 basis points to 12% at a special policy meeting.
The emergency tightening followed sustained pressure on the shilling, which had lost approximately 12% against the dollar since the beginning of 2026. The central bank raised its 12-month inflation forecast to 7%–7.5% amid higher international energy prices and currency depreciation.
Fitch Ratings affirmed Uganda's sovereign rating at B with a Stable Outlook in August, citing rising public debt, persistent fiscal deficits and high interest costs among the constraints on the country's creditworthiness.
See IntelliNews: Uganda central bank raises interest rate to 12% at emergency meeting as shilling hits record lows
See IntelliNews: IMF to return to Uganda in September for new programme talks