The International Monetary Fund (IMF) has said that Uganda is able to repay its loans, pointing to a stable and resilient financial sector despite economic pressures.
In a statement released on Tuesday, January 27, 2026, the IMF Executive Board said Uganda’s banking and financial system remains strong, supported by improved capital buffers and better regulation. Capital buffers are extra funds that banks keep to protect themselves during economic shocks.
According to the IMF, Ugandan banks are well-positioned to absorb risks and continue lending to businesses and households. This stability has helped the country manage its public debt and meet its loan repayment obligations.
The IMF also noted that Uganda’s economy continues to recover, helped by government reforms, steady domestic revenue collection, and growth in key sectors such as banking, services, and trade. Higher earnings from government securities and loans have improved bank profits, strengthening the wider financial system.
However, the Fund cautioned that Uganda must continue to manage its debt carefully, control spending, and improve tax collection to avoid future pressure on public finances. Rising global interest rates and external shocks remain potential risks.
Overall, the IMF’s assessment offers reassurance to investors and development partners that Uganda’s economy is stable and capable of meeting its financial commitments, even as the government balances debt repayment with funding priorities such as health, education, and infrastructure.
