Why Uganda’s private sector is squeezed out of credit market

Rising domestic borrowing by the government partly stimulated higher interest rates on Treasury bills and bonds during the first quarter of 2025.

Photo credit: Shutterstock

Uganda’s private sector was pushed to the periphery of the credit market in the first quarter of 2025, even as the government tapped heavily into the local lending basket for funds.

Data also shows that local telecommunications firms absorbed significant new loan facilities during the same period.