By Faith Kwagala
Uganda’s growing foreign investment is facing fresh concerns, as global financial shocks threaten to drive investors out. A new warning from the International Monetary Fund says the country’s reliance on offshore money makes it vulnerable to sudden capital flight.In 2025, foreign investors increased their holdings in government bonds, reaching about $2.8 billion by December. This boosted foreign reserves and strengthened the shilling, signaling economic progress.However, recent global tensions have triggered investor withdrawals, with many converting shillings back into dollars and exiting the market.Experts warn that such quick movements could weaken local markets and disrupt stability, highlighting the need for stronger domestic investment to reduce dependence on unpredictable foreign capital.