An ongoing IMF program should help contain fiscal deficits, but Uganda's financing needs will be higher than pre-pandemic levels. We expect large import-intensive oil-related investment to lead to sizable current account deficits (CADs) until oil production comes online in late 2025. While fiscal and external deficits will erode Uganda's headroom and resilience to further shocks, a favorable debt profile, with a significant portion provided by multilaterals on concessional terms, mitigates this. We affirmed our 'B/B' long- and short-term sovereign credit ratings on Uganda. The outlook remains stable. On June 10, 2022, S&P Global Ratings affirmed its 'B' long-term and 'B' short-term sovereign credit ratings on Uganda. The outlook remains stable. The stable outlook balances risks associated with Uganda's high fiscal
