The Uganda People’s Congress (UPC) is calling for urgent attention to the heavy debt burden faced by member states at the ongoing Non-Aligned Movement (NAM) Summit.
The UPC emphasizes that since the Arab-Israel War of the early 1970s, member states have been shackled by a significant debt burden, limiting investment opportunities and hindering trade in their economies. Faizo Muzeyi, the spokesperson for UPC, addressed journalists at the party’s headquarters in Kampala, stressing the need for practical solutions to alleviate the debt trap.
Muzeyi outlined key proposals, including the renegotiation of existing debts to ease the burden on member states. He highlighted the importance of understanding the conditions of loans before acceptance and emphasized the necessity of putting borrowed funds to efficient use.
“The acquired debt money is often either misused or results in substandard goods and services. A clear mechanism for the effective utilization of debt funds is crucial for deriving benefits,” Muzeyi added, citing instances such as the wastage of expired Covid-19 vaccines acquired with borrowed funds.
Debt Overview
As of June 2023, Uganda’s total debt stood at UGX 86.8 trillion, according to state finance minister Henry Musasizi. This revelation was made during the presentation of the National Budget Framework Paper for the financial year 2024/2025-2028/2029.
Additional Concerns
UPC urged NAM member states to address a range of challenges, including food insecurity, climate change, poor health, unemployment, migration, and terrorism. The party emphasized the need for substantial investments in innovation and technology, focusing on large-scale production and reliance on local raw materials.
Muzeyi called on member states that have achieved development breakthroughs to serve as models to inspire others, aligning with the ongoing NAM summit’s theme, “deepening cooperation for shared global affluence.”
Investment Call in Uganda
President Yoweri Museveni, in his speech read by Vice President Jessica Alupo during the NAM Summit, rallied investors to consider Uganda as a prime investment destination. The President highlighted the country’s resource-rich nature and encouraged investors to explore opportunities in the oil and gas sector, with commercial production scheduled to commence in 2025.
The East African Trade and Investment Forum, coinciding with the 19th NAM summit, aims to attract at least $1 billion worth of investments across various sectors, including energy, ICT, agriculture, trade, infrastructure, mining, industrialization, tourism, and oil and gas.
