Uganda’s Historical Relationship with East African Monetary Integration Colonial Legacy and Early Experiments:Uganda, along with Kenya and Tanzania (then Tanganyika), shared the East African Currency Board (EACB) under British rule. Established in 1919 and later headquartered in Nairobi, the EACB managed the East African shilling across the region Wikipedia. After independence, cooperative monetary structures broke...
1. The Context: East African Financial Integration East Africa’s economic integration continues to deepen across trade, infrastructure, and financial markets. A key enabler is efficient cross‑border lending and payments, especially between major partners—Uganda and Kenya. Uganda, being landlocked, relies heavily on Kenya’s Mombasa port for exports and imports, making effective trade financing essential. Furthermore, regional...
1. Pre‑Pandemic Landscape: A Strong Foundation Before COVID‑19, Uganda’s banking sector demonstrated steady growth and resilience: This solid footing provided a buffer as the pandemic struck.2. Shockwaves from COVID‑19: Lending, Liquidity, and Profitability 2.1 Lending Pressures The economic slowdown and restrictions severely impacted borrowers’ ability to service loans. By mid‑2020, NPLs had grown from 3.4 %...
1. Setting the Stage: Uganda Pre‑2009 Before 2009, financial inclusion in Uganda was low. Only around 16% of adults had access to formal bank accounts, with financial services heavily skewed toward urban areas. Many rural populations relied on informal methods like savings groups, cash couriers, or physical travel to distant bank branches Wikipediafinclusion.org. But Uganda...
1. Historical Foundations of Microfinance in Uganda Uganda’s microfinance ecosystem traces back to early collective financial models: 2. Birth of Modern Microfinance Institutions (MFIs) From the 1980s onward, Uganda became a cradle for formally structured MFIs: Institutional support from international NGOs, donors, and government credit schemes—e.g., Rural Microfinance Project (2003) and the Poverty Alleviation Project...
1. Building Bridges: Ugandan Banks in Regional Consortiums Uganda’s banking landscape has become increasingly interwoven with regional networks. Institutions like Exim Bank Uganda, KCB Bank Uganda, Diamond Trust Bank (DTB), and Absa Uganda all operate under parent groups with footprints across East Africa. 2. Strategic Acquisitions and Expansion Regional expansion through mergers and acquisitions has...
1. A Vision Emerges: National Strategy for Inclusion (2017–2022) 2017 — Uganda launched its National Financial Inclusion Strategy I (NFIS I), aiming to provide every citizen with access to quality, affordable financial services. Guided by five strategic pillars—reducing access barriers, enhancing credit infrastructure, building digital platforms, deepening savings/investments, and strengthening financial capability—it aimed to reduce...
1. A Curtain-Raiser: The Global Shockwaves of 2008 The financial crisis that erupted in the United States in 2007 quickly rippled across global markets. Developed economies experienced massive credit freezes and institutional collapses. While Uganda wasn’t directly exposed to toxic assets or subprime lending, the fallout still managed to influence its financial system through global...
1. Energy: Powering Uganda’s Regional Connectivity Uganda–South Sudan Electricity Interconnection Project In December 2024, the African Development Fund (ADF)—the concessional lending arm of AfDB—approved financing of $153.66 million for Uganda and South Sudan’s electricity interconnection roadmap. Uganda will receive $119.21 million as a loan, while South Sudan gets $32.5 million in grant aid. The initiative...
Manufacturing is a cornerstone of Uganda’s economic growth. It contributes significantly to employment, GDP, and exports. According to the Uganda Bureau of Statistics (UBOS), the manufacturing sector accounts for approximately 9% of Uganda’s GDP and provides jobs for hundreds of thousands of Ugandans, particularly in urban and peri-urban areas. Despite this potential, many manufacturing enterprises...
