Uganda’s economy promisingly grew on an average of 7% per annum for the last decades during 1990-2010.However, during years 2011 to date this rate has slowed down to an average of 5.5 % per annum. Current estimates indicate that the economy will underperform with growth expected at less than 4 percent due to prolonged drought, political instabilities in South Sudan, slow execution of externally-financed public investments, among other factors.
The slowdown in growth however is prevailing with the increased public debt figures which could have prompted the president to halt the approval of 11 loans worth US$ 914.79m by the Parliament. According the Bank of Uganda’s   State of Economy Report (March 2017), Uganda’s public debt is at stand of 32.45trillions.  Out of this, domestic debt contributes about Shs. 12.56 trillion and external debt Shs. 19.89 trillion.
 
Uganda’s economy grew steadily on an average of 7% per annum for the two decades during 1990-2010.  This performance was exceptional and the country won the plaudits of many a commentator and was highly regarded as one of the best performers in the world. However, during years 2011- 2014 and thereafter this rate slowdown to an average of 5.5 % per annum.  The slowdown in the growth has been attributed to both internal and external factors.
Uganda like other developing countries does not wholly finance its Financial Year National budget, hence is necessitating borrowing domestically and externally. Historically, Uganda has had a poor trend of public debt management which prompted a debt campaign by civic groups like Uganda Debt Network and Development partners including IMF and World Bank inter alia and the subsequent relief worth US$2b in 1990s through the Highly Indebted Poor Countries initiative (World Bank, 2000).
 However, Uganda’s public debt is gradually rising based on bilateral relations. For instance between January 2010 and June 2016, Government signed 96 loan agreements worth USD 8.8billion with China (in particular EXIM Bank) being the largest creditor at 29% of the total loans, followed by the World Bank (27%) and African Development Bank (21%). Other creditors account for 23% (BADEA, EIB, France, Germany, IFAD, Japan, Kuwait, OPEC, South Korea and Saudi Arabia).