The International Monetary Fund (IMF) plans to send a staff team to Uganda in September for further negotiations on a new financial support programme, as the East African economy seeks to strengthen its fiscal position and manage rising debt pressures.
New IMF Programme Under Discussion
The planned mission will build on discussions that have already taken place between Ugandan authorities and the IMF. IMF Resident Representative Sébastien Walker said negotiations on a new programme have been constructive but that further progress is required before an agreement can be reached.
Uganda’s previous IMF-supported programme expired in 2024. The country has since been seeking a follow-up arrangement, with discussions on a new Extended Credit Facility having started in 2025.
Growth Strengthens as Oil Production Nears
Uganda’s economy has maintained strong momentum, supported by domestic demand, relatively low inflation and improving private-sector credit. The IMF expects the country’s economic outlook to strengthen further with the anticipated start of crude oil production in late 2026.
The beginning of oil production could improve Uganda’s fiscal and external balances over the medium term and provide additional revenues for government development programmes.
Debt and Fiscal Pressures Remain
Despite the positive growth outlook, Uganda faces significant challenges, including a heavy debt-servicing burden and a deteriorating fiscal position. These issues are expected to feature prominently in the upcoming IMF discussions.
The IMF’s latest assessment also noted that Uganda’s previous 2021–24 Extended Credit Facility helped rebuild fiscal space and foreign-exchange reserves while supporting economic reforms. Uganda had about $1.3 billion in outstanding IMF credit at the end of the 2024/25 financial year.
Talks Could Shape Uganda’s Economic Policy
The September mission is expected to determine how much progress can be made toward a new IMF-supported programme. Any eventual agreement would likely provide a framework for fiscal management, debt sustainability and broader economic reforms as Uganda prepares for the expected expansion of its oil sector.
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