Uganda like other developing countries does not wholly finance its Financial Year National budget, hence is necessitating borrowing domestically and externally. Historically, Uganda has had a poor trend of public debt management which prompted a debt campaign by civic groups like Uganda Debt Network and Development partners including IMF and World Bank inter alia and the subsequent relief worth US$2b in 1990s through the Highly Indebted Poor Countries initiative (World Bank, 2000).
However, Uganda’s public debt is gradually rising based on bilateral relations. For instance between January 2010 and June 2016, Government signed 96 loan agreements worth USD 8.8billion with China (in particular EXIM Bank) being the largest creditor at 29% of the total loans, followed by the World Bank (27%) and African Development Bank (21%). Other creditors account for 23% (BADEA, EIB, France, Germany, IFAD, Japan, Kuwait, OPEC, South Korea and Saudi Arabia).