Moderate public and external debt levels. Strong relations with donors. Prudent policy mix that, along with ongoing investment, supports good growth prospects. Untested democratic processes in the event of a transition of power. Low level of economic development and significant long-term development challenges. A high level of donor dependence. The ratings on the Republic of Uganda are constrained by the sovereign's low economic development, its dependence on donor funds, the lack of a track record of democratic government handovers, and the long-term challenges stemming from rapid population growth. They are supported by relatively unlevered fiscal and external balance sheets following debt relief, good fiscal-monetary policy coordination, strong relations with donors, and good growth prospects on the back of ongoing investments
