Bank of Uganda pushes for inclusive growth and financial literacy

The Deputy Governor of the Bank of Uganda, Prof. Augustus Nuwagaba, has called for greater public engagement with the country’s financial systems, citing their critical role in driving inclusive socio-economic transformation.

Speaking during a town hall meeting in Bushenyi District, Prof. Nuwagaba outlined the Central Bank’s strategic efforts to promote financial stability, rural development, and economic resilience across Uganda.

In a wide-ranging address to local leaders, residents, and stakeholders, the Deputy Governor emphasized that the Central Bank’s work goes beyond setting monetary policy, noting that its mandate now includes advancing financial inclusion, strengthening consumer protections, and supporting Uganda’s transition to a sustainable economy.

“The Bank of Uganda is not just about setting interest rates. We are building a resilient, inclusive financial system that empowers every Ugandan — from the farmer in Bushenyi to the entrepreneur in Kampala,” Nuwagaba said.

Inflation Control and Financial Supervision

Underscoring the bank’s core mandate, Prof. Nuwagaba explained that price stability remains essential to protecting households from the damaging effects of inflation. “Keeping inflation below 5% allows families to plan and invest confidently,” he noted, adding that Uganda had weathered global economic shocks relatively well due to sound monetary policy.

He also reiterated the Bank’s commitment to strong regulation of financial institutions, ensuring they operate ethically and protect depositors’ money. The Bank currently supervises commercial banks, microfinance institutions, forex bureaus, and SACCOs.

Expanding Access to Financial Services

Prof. Nuwagaba highlighted the launch of the National Financial Inclusion Strategy (2023–2028) as a key tool in reducing financial disparities. “Access to financial services must not depend on your income or location,” he said. “That’s why we’re working with banks, telecoms, and development partners to reach rural communities, especially women, youth, and smallholder farmers.”

He praised the role of mobile money in expanding access to digital payments and announced ongoing efforts to boost financial literacy so Ugandans can use digital platforms safely and effectively.

Agricultural Finance and SME Recovery

In a direct appeal to the farming communities of Bushenyi, Mitooma, and neighbouring districts, Prof. Nuwagaba urged small-scale farmers to tap into the Agricultural Credit Facility (ACF), which offers loans at a subsidized interest rate of 12% per annum. The ACF supports commercial farming, mechanisation, post-harvest handling, and agro-processing.

He also noted the continued rollout of the Small Business Recovery Fund (SBRF), a post-COVID-19 initiative aimed at helping SMEs access affordable credit and rebound from pandemic-related disruptions.

Promoting Financial Empowerment

Calling on young people, professionals, and commercial farmers, the Deputy Governor encouraged investment in government treasury instruments such as Treasury Bills and Bonds, describing them as “safe, profitable and patriotic ways to support national development.”

He further announced that the Bank is integrating Environmental, Social, and Governance (ESG) principles across the financial sector. Through the Sustainability Standards and Certification Initiative, the Bank is guiding financial institutions on responsible lending, climate risk mitigation, and social safeguards.

Community Impact and Social Responsibility

The Central Bank is also making targeted investments in health care infrastructure. Prof. Nuwagaba cited the renovation of nine health centres, including Rwoburunga Health Centre IV in Mitooma, as part of the Bank’s corporate social responsibility. “Our goal is to improve maternal and neonatal care and ensure our economic growth is matched by real improvements in people’s lives,” he said.

Looking Ahead

Prof. Nuwagaba concluded by assuring residents that the Bank of Uganda remains committed to macroeconomic stability and people-centered development. He urged community members to engage with Central Bank officials and ask questions, emphasizing transparency and collaboration.

“We are here to listen. Together, we can ensure that the financial system becomes a foundation for opportunity, stability, and national progress,” he said.

The Bushenyi town hall marked one of several public engagement efforts being undertaken by the Bank to demystify its operations and reinforce its commitment to inclusive development.