Funding gaps for the Ugandan government continue rising as we anticipated, due to persistent supplemental budgets and substantially lower external financing compared with the original budget plans. However, fiscal pressures could start moderating, and the Ugandan economy may expand substantially once exports from major oil projects start in late 2026. Economic growth will be supported by investment and the construction of large oil projects, while the agricultural sector continues to underpin activity, considering it has not been hit as hard by droughts as its regional peers. We therefore affirmed our 'B-/B' sovereign credit ratings on Uganda. The outlook is stable. On May 31, 2024, S&P Global Ratings affirmed its 'B-' long-term and 'B' short-term foreign and local currency sovereign credit
