Indigenous banks key to Uganda’s tenfold growth agenda, says Minister Musasizi

KAMPALA: Finance Minister Henry Musasizi has said indigenous financial institutions will play a critical role in delivering Uganda’s ambitious tenfold economic growth strategy by expanding access to affordable credit, deepening financial inclusion and supporting wealth creation.

Mr Musasizi made the remarks during separate meetings with the leadership of government-owned Pearl Bank and Pride Bank, where discussions centred on the role of local banks in driving economic transformation and supporting government development programmes.

The meetings were also attended by Ministers of State Amos Lugoloobi (Planning) and Cissy Mulondo (General Duties).

At a meeting with Pearl Bank Managing Director Julius Kakeeto, the ministers discussed the bank’s strategic direction and the support required to enable it contribute more effectively to Uganda’s economic growth agenda.

Pearl Bank, a government-owned commercial bank with a 13 percent market share, operates 58 branches across the country and has expanded its digital footprint through the Wendi mobile wallet platform, which currently serves about 2.4 million subscribers.

Mr Kakeeto said achieving Uganda’s tenfold growth target will require significant expansion of the financial services sector, particularly indigenous banks that are better positioned to understand and serve local businesses and households.

“There is need to deliberately scale up local banks to foster prosperity for Ugandans and support economic transformation,” he said.

According to Mr Kakeeto, Pearl Bank has helped bring more than five million Ugandans into the formal economy through its financial inclusion initiatives and has supported the creation of over 31,000 jobs across the country.

However, he noted that the bank requires additional capital to strengthen its liquidity position and increase lending to productive sectors of the economy.

“Additional capital will enable us to expand lending, particularly to small and medium enterprises, while also influencing a reduction in the cost of borrowing,” he said.

Mr Musasizi urged the bank to maintain its focus on sustainable financial inclusion and continue supporting government programmes aimed at improving household incomes and economic participation.

Mr Lugoloobi emphasized the need for financial institutions to support enterprises operating within the Agriculture, Tourism, Minerals and Science, Technology and Innovation (ATMS) sectors, which government has identified as key drivers of economic growth.

He said banks should explore opportunities along the value chains of the priority sectors and support enterprises to access financing and government programmes.

In a separate meeting, the Finance minister met the leadership of Pride Bank led by Managing Director Veronicah Gladys Namagembe ahead of the institution’s annual general meeting scheduled for next month.

Pride Bank, a government-owned Tier II credit institution, operates 44 branches and three contact offices across the country.

Ms Namagembe said the institution has continued to advance financial inclusion through strategic financing partnerships and support to flagship government programmes, including the Parish Development Model (PDM), Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project, the Agricultural Credit Facility and large-scale commercial agriculture initiatives.

“Our ambition is to build a resilient, customer-centric and digitally enabled bank that drives sustainable growth and creates lasting impact,” she said.

She added that the bank remains committed to expanding access to financial services for underserved communities while supporting enterprises that contribute to economic development.

Mr Musasizi commended Pride Bank for its growth and contribution to financial inclusion over the years, describing its transformation agenda as important for Uganda’s broader development goals.

He said access to affordable credit remains one of the key ingredients for stimulating investment, increasing productivity and improving household incomes.

“The real purpose is to transform people’s lives. Financial institutions must ensure that Ugandans have access to affordable financing that enables them to grow businesses, create jobs and improve their livelihoods,” he said.

The meetings come as government intensifies efforts to implement its tenfold growth strategy, which aims to expand the size of Uganda’s economy through increased investment, industrialisation, value addition and private sector-led growth.

Officials say indigenous financial institutions will be critical in mobilising domestic savings, financing enterprises and extending financial services to communities that remain underserved by mainstream banking.