US Economist Jeffrey Sachs Backs More Borrowing for Uganda’s Dev’t

Summary:

• US economist Prof Jeffrey Sachs has advised Uganda to borrow more for development, emphasizing the need for long-term loans. While some local economists criticize Uganda’s borrowing, Sachs praised the government’s Parish Development Model and urged leveraging regional markets.

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US economist Professor Jeffrey Sachs has advocated for Uganda to increase its borrowing to finance crucial development projects, warning that failure to do so could perpetuate poverty in the country.

Sachs expressed his views during a meeting at the Office of the Prime Minister of Uganda, hosted by the Honorable Robinah Nabanja, where he engaged with officials from various ministries and government agencies. Emphasizing the necessity of additional borrowing, Sachs stressed the importance of securing long-term loans with repayment periods extending to at least 30 years.

While acknowledging concerns about Uganda’s level of borrowing, Sachs commended the government’s introduction of the Parish Development Model (PDM), which aims to address the Sustainable Development Goals (SDGs) comprehensively. He urged the government to capitalize on opportunities within regional markets such as the East African Community and the African Free Trade Area.

Highlighting key sectors for investment, including education, health, agriculture, industry, and ICT, Sachs underscored their potential to drive Uganda’s development forward.

Ramathan Ggoobi, the Permanent Secretary in the Ministry of Finance, Planning, and Economic Development, welcomed Sachs’ endorsement of increased borrowing, asserting that Uganda manages its debt effectively.

Professor Sachs is internationally recognized for his innovative approaches to tackling complex global challenges, spanning poverty alleviation, climate change mitigation, debt management, economic reforms, and public health crises.

Invited by Ms. Nabanja, Sachs is currently in Uganda and is scheduled to meet with President Yoweri Museveni to discuss strategies for advancing the country’s development goals.

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