Financial inclusion ‘a moral imperative,’ says BoU Deputy Governor

KAMPALA — The Bank of Uganda (BoU) has reaffirmed its commitment to building a financial system that leaves no Ugandan behind, calling for stronger collaboration and innovation to ensure that access to finance translates into meaningful usage and empowerment.

Speaking at the Annual Financial Inclusion Forum 2025 held on Thursday, November 6, at the Sheraton Hotel Kampala, Deputy Governor Prof. Augustus Nuwagaba said financial inclusion is not an act of generosity but an essential driver of shared prosperity.

“Financial inclusion is not charity; it is an economic necessity and a moral imperative,” Prof. Nuwagaba said. “Our financial system must be people-centred, technology-enabled, climate-smart, and trust-driven.” This year’s forum, held under the theme “Access to Usage: Advancing Inclusive Financial Product Uptake in Uganda,” challenged policymakers and industry leaders to move beyond expanding access and instead focus on how financial services can genuinely transform lives.

Prof. Nuwagaba emphasized that inclusion means empowerment, dignity, and opportunity for all Ugandans, particularly women, youth, refugees, persons with disabilities, and rural communities who remain on the margins of formal finance. “In a country where vulnerable groups still face barriers, our collective mission must be to turn access into meaningful usage,” he said.

According to the FinScope 2023 survey, about 27 percent of Ugandan adults remain excluded from formal financial services, most of them women and smallholder farmers. Yet, with 72 percent of Ugandans owning mobile phones, the uptake of digital financial products has increased significantly. “Inclusion must not be an afterthought; it must be the design principle,” the Deputy Governor added. “Product developers must think about users from the very beginning.”

He noted that financial inclusion should be measured not only by access but by how effectively people use financial tools to improve their livelihoods. “Thirty-seven percent of Ugandans are still excluded from the money economy despite all financial inclusion initiatives,” he said. “In 2013, only 23 percent of Ugandans had bank accounts. Today, that figure stands at 73 percent, showing tremendous progress—but we must go further.”

Finance Minister Matia Kasaija, who was the forum’s chief guest, highlighted major strides Uganda has made in expanding access to finance and promoting economic empowerment at the grassroots. He pointed to wealth creation programmes such as the Parish Development Model (PDM) and Emyooga, which continue to drive inclusion at the community level. The government has also implemented large-scale financing schemes such as the Small Business Recovery Fund, the Agriculture Credit Facility, and the gradual capitalization of the Uganda Development Bank to meet the financing needs of Ugandans.

In the agriculture sector, the Uganda Agriculture Insurance Scheme has disbursed over UGX 40 billion, benefiting 885,623 farmers and insuring agricultural loans worth UGX 2.47 trillion. The Capital Markets Authority has also played a pivotal role in mobilizing alternative financing for both public and private sector investments, while Uganda’s removal from the Financial Action Task Force (FATF) grey list marked a major milestone in strengthening the country’s global financial credibility.

Minister Kasaija further cited the rebranding of PostBank to Pearl Bank as a strategic evolution into one of Uganda’s top-performing banks, the enactment of the Mortgage Refinance Institution Act 2025 to address the loan maturity mismatch in the financial sector, and the expansion of microfinance services through a new Microfinance Support Centre branch in Gulu, targeting the Acholi sub-region. Additionally, the Bank of Uganda has issued operational licenses to three large SACCOs, a critical step toward improving regulation and consumer protection in the cooperative sector. “These reforms underscore government’s resolve to make finance inclusive, resilient, and responsive to the needs of every Ugandan,” Mr. Kasaija said.

Prof. Nuwagaba also pointed to ongoing investments under the National Backbone Infrastructure and e-Government projects, which aim to extend internet connectivity to remote regions such as West Nile, Eastern Uganda, and Bundibugyo as key enablers of inclusive finance. He likened this mission to the Biblical Parable of the Talents, urging Ugandans to use their abilities to create value. “Just as the scripture teaches us to use our gifts wisely, we must use innovation and technology to expand access and usage of financial services,” he said.

The Deputy Governor warned that climate change poses growing risks to Uganda’s financial stability and livelihoods, calling for the integration of green finance across the financial system.

“Integrating green finance is not optional—it is a strategic imperative,” he said. “We must act now to build a climate-resilient economy that safeguards both people and the planet.” To build confidence in the financial system, Prof. Nuwagaba said BoU is enforcing consumer protection measures under the Competition Act 2024 and the National Payment Systems Act, ensuring fairness, transparency, and accountability in financial services. “Financial institutions, FinTechs, civil society, and consumer associations must work together to protect and empower the financial consumer,” he said.

PostBank Managing Director Julius Kakeeto echoed the call for sustainable inclusion, stressing that understanding people—not just products—is key to meaningful impact. “Sustainability is at the centre of financial inclusion. We cannot achieve it without venturing deliberately into the MSME and agriculture sectors, where most youth and women earn their livelihoods,” he said. Kakeeto urged financial institutions to design solutions that reflect community realities, including seasonal incomes and informal cash flow patterns. “Most MSMEs and farmers depend on seasonal income. We must extend credit that fits their cycles, not the bank’s calendar,” he said, adding that partnerships between banks, government, and development partners such as AFD are vital to de-risk lending and support green finance.

He emphasized that inclusion goes beyond credit access—it requires financial literacy, digital onboarding simplicity, and climate-smart financing to support Uganda’s most vulnerable sectors. “Financial inclusion is a journey of collaboration, innovation, and empathy. When we design for real people, inclusion becomes sustainable,” Kakeeto noted.

Prof. Nuwagaba closed the forum by reminding stakeholders that Uganda’s inclusion journey has always been built on partnerships—between regulators, innovators, communities, and government. Quoting Queen Máxima of the Netherlands, the UN Secretary-General’s Special Advocate for Inclusive Finance, he said, “Financial inclusion is not an end in itself but a means to empower people and improve their lives.” He added, “This is our opportunity to shape the kind of economy we want—one that is resilient, inclusive, and sustainable, where every woman, man, and youth can thrive.”

Over the past decade, Uganda has made steady progress through innovations such as mobile money, microinsurance, agent banking, and collective investment schemes. The country’s National Financial Inclusion Strategy aims to reduce financial exclusion to below 10 percent by 2030. Still, experts warn that access alone is not enough; usage, trust, and consumer protection remain the next frontiers for Uganda’s inclusive finance agenda.