KAMPALA, Uganda – The Ministry of Finance has called on commercial banks to intensify efforts to expand credit access, warning that Uganda’s current credit-to-GDP ratio of 14 percent is too low to support the country’s ambitious growth agenda.
Delivering remarks at the 2025 Annual Bankers’ Awards in Kampala, Moses Kaggwa, the Acting Director of Economic Affairs, said the financial sector must play a stronger role in unlocking national development.
“Borrowing and credit uptake are increasing, but at a very slow pace,” Kaggwa noted. “At 14 percent of GDP, credit cannot move us fast enough. We need to push this to at least 40 percent if we are to finance our tenfold growth strategy.”
Kaggwa emphasized that deeper credit penetration is critical for sustaining economic transformation and enabling the private sector to invest, expand, and innovate.
Stable Macroeconomic Environment, Growing Sectors
The Finance Ministry official also highlighted improvements in key economic indicators. Inflation has eased to 3.5 percent—well below the Bank of Uganda’s 5 percent target, while the shilling appreciated by 2.6 percent against the US dollar last year, making it one of the most stable currencies on the continent.
Growth is rebounding across agriculture, agro-services, industry, and services. Kaggwa noted that government investments in power, ICT infrastructure, and transport are creating supportive conditions for business expansion. Uganda now has a surplus electricity generation capacity of over 2,000 megawatts, and the National Backbone Infrastructure covers 70 percent of the country.
Kaggwa further underscored the potential in tourism, minerals, and oil and gas. Uganda’s first oil is expected in 2026, with prospects for increased revenue and industrialization.
“No country has developed without industrialization,” he said. “We must leverage our agriculture, mineral wealth, tourism, and innovation capacity. And for these sectors to thrive, the banking industry must step up as an enabler.”
The event also marked a historic moment for Uganda’s financial sector with the launch of the first-ever Annual Bankers’ Awards, organized by the Uganda Institute of Banking and Financial Services (UIBFS), the Bank of Uganda (BoU), and the Uganda Bankers’ Association (UBA).
Held at Mestil Hotel, the awards drew 57 submissions across 14 categories, celebrating excellence, innovation, professionalism, and leadership under the theme “Beyond the Finish Line.” The competition was audited by PwC and evaluated by a nine-member panel of industry experts representing over a century of combined experience.
UIBFS CEO Mrs. Goretti Masadde said the awards come at a pivotal moment as the sector adapts to rapid technological change and rising customer expectations.
“Recognizing excellence is catalytic,” she said. “It pushes us forward, strengthens institutions, and sharpens our collective commitment to high performance.”
The UIBFS Board Chair, Mr. Michael K. Mugabi, pledged to institutionalize the awards as an annual benchmark for industry excellence, while BoU Deputy Governor’s representative, Mr. Michael Atingi-Ego, praised the initiative for advancing innovation, risk management, and customer protection.
A New Era for Uganda’s Financial Sector
The introduction of the Annual Bankers’ Awards signals a coordinated effort to raise professional standards, deepen transparency, and inspire continuous improvement across the banking industry.
As Uganda pursues economic transformation driven by infrastructure, industrialization, and technological innovation, leaders say a dynamic and responsive financial sector will be central to achieving national development targets.
