DOES UGANDA'S DEBT SIGNAL INDIVIDUAL FINANCIAL BEHAVIOR?

 In the New Vision of 23rd May 2024 it was noted that global firms down graded Uganda's credit rating. Moody's was the latest credit rating agency to revise Uganda's long term credit worthiness downwards citing fiscal challenges ,external vulnerability and economic concerns . It was noted that by the end of December 2023,total public debt had  increased to sh 93.38 trillion. In New Vision it was reported in the Finscope survey that over 70% of Ugandans survive on loans. It was not reported that Ugandans thrived on loans but rather survived. As a financial literacy trainer I fully support borrowing because when businesses borrow more jobs are created and businesses are able to pay tax to government.

From a financial literacy perspective it is important to ask some important questions. Does national debt replicate the individual borrowing practices in Uganda? If Uganda is perceived as risky to lend won't it affect resource mobilization especially from investors? Where do individuals borrow from and at what interest rate? How do they use the borrowed funds? Organizations such as Uganda Financial Literacy Association have a critical role to play in extending financial literacy in the country.

Having trained several youths in financial literacy one of the key lessons that I have learnt is that financial literacy is very key in building a stable financial system. There are very many financial mistakes that are being committed at individual, family and community level. 

It seems there is a correlation between the level of national debt and prevailing individual financial behavior in society.


Phillip Kiryowa

Finance and Leadership Coach

+256752615916

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