IMF to return to Uganda for talks on new economic support programme

Monday 17 August 2026 - 11:30

By: Sahili Aya

IMF to return to Uganda for talks on new economic support programme

The International Monetary Fund is preparing to send a team to Uganda in September for renewed discussions on a potential financial support programme, as the East African economy seeks to strengthen its public finances while preparing for a major shift linked to the expected start of crude oil production.

The planned mission comes after earlier discussions failed to produce an agreement on a successor to Uganda’s previous IMF programme, which ended in 2024.

Negotiations set to resume in September

The IMF’s resident representative in Uganda, Sébastien Walker, said discussions so far had been constructive but that additional work was required before the two sides could reach an agreement.

An IMF mission is therefore expected to travel to Uganda next month to continue negotiations on the framework and conditions of a new programme.

The talks could become an important component of Uganda’s efforts to address fiscal pressures while maintaining economic stability.

Strong growth meets fiscal challenges

Uganda has continued to record solid economic growth, with prospects further supported by the anticipated beginning of crude oil production.

The development of the country’s oil sector is expected to transform government revenues and strengthen economic activity over the longer term. However, the benefits will depend on the pace of production and the government’s ability to manage the resulting revenues effectively.

At the same time, Uganda faces significant pressure from debt servicing and a weakening fiscal position, according to the IMF’s latest Article IV assessment.

Balancing investment and debt obligations

The government faces the challenge of maintaining investment in infrastructure and development while controlling borrowing costs and improving its fiscal position.

A new IMF programme could provide a framework for addressing these issues, potentially supporting reforms aimed at strengthening public finances and improving economic resilience.

For Kampala, the negotiations will also come at a crucial moment as the country prepares for the expected economic impact of oil production.

Oil raises hopes and policy challenges

Uganda’s oil prospects have generated expectations of stronger government revenues and increased foreign investment. Yet the emergence of new resource revenues also creates policy challenges, including the need for prudent fiscal management and sustainable debt levels.

The September mission will therefore be closely watched for indications of how the government and the IMF intend to reconcile Uganda’s growth ambitions with its financial constraints.