Uganda’s economic trajectory is under scrutiny as analysts warn that rising public debt, governance gaps, and election-related disruptions are slowing business activity and undermining investor confidence.

At the heart of the concern is how public resources are managed in a country where government spending remains a critical driver of economic liquidity.

Speaking during a televised economic debate on Thursday March 5, 2026, Ronald Kwesiga, Vice President of the Uganda National Chamber of Commerce and Industry, noted that recent Auditor General reports reveal systemic challenges in accountability.

“Many issues are being swept under the carpet while the economy struggles. The election cycle has further slowed the flow of business as investors adopt a cautious stance,” he said.

Kwesiga said in Uganda, government contracts and timely payments are crucial for market circulation.

“When the government pays contractors and suppliers, liquidity rises, production intensifies, and innovation is stimulated. In other words, delays or mismanagement in public spending have ripple effects across the economy,” he said.

John Kakungulu Walugembe, an economist warned that the country’s rising debt poses long-term risks.

“While anticipated oil revenues could ease borrowing pressures, the benefits depend on how funds are deployed. Investing in productive infrastructure is positive, but misallocation deepens fiscal vulnerability,” he said.

Recent high-profile scandals, including the 2023 diversion of over 14,500 iron sheets meant for vulnerable communities in Karamoja, underscore persistent governance weaknesses.

Procurement irregularities and repeated Auditor General warnings fuel public distrust and highlight the stakes of managing Uganda’s resources prudently.

As Uganda prepares for commercial oil production, analysts stress that transparency, accountability, and strategic investment will be essential to convert resource wealth into sustainable economic growth.