The Bank of Uganda has directed commercial banks and other supervised financial institutions to submit board-approved strategies outlining how they will support the country’s ambitious plan to grow into a $500 billion economy by 2040.
Governor Michael Atingi-Ego said financial institutions must demonstrate how their business models, capital strength, and risk management systems will adapt to support the government’s long-term economic growth agenda.
Uganda’s private-sector credit currently stands at slightly below Shs30 trillion, but the central bank says it must rise to more than Shs490 trillion by 2040 to match the country’s economic expansion targets.
Atingi-Ego noted that the credit-to-GDP ratio, which currently stands at about 12.4 per cent, must increase towards 50 per cent if Uganda is to achieve its desired level of economic transformation.
The governor made the remarks while addressing the Uganda Institute of Banking and Financial Services’ second annual research conference, where he highlighted the role of financial sector regulation in supporting the country’s 10-fold growth agenda.
He said banks should focus not only on avoiding risks but on developing the capacity to manage larger lending portfolios through stronger governance structures, healthier balance sheets, and improved analytical systems.
The planned credit expansion is expected to support key sectors including agriculture, manufacturing, infrastructure, housing, and export-oriented businesses, which are considered critical drivers of economic growth.
Atingi-Ego said the central bank will continue developing a forward-looking regulatory framework that promotes investment while maintaining financial stability, adding that effective regulation should allow economic ambition and safety to progress together.
The governor also raised concerns about funds locked in prolonged commercial disputes, saying delayed resolution of such cases prevents money from being invested or extended as credit to businesses.
During the conference, Atingi-Ego also launched a Financial Sector Research Hub aimed at strengthening evidence-based decision-making through research on areas such as credit scoring, climate risks, capital markets, and supervisory technology.
