Bankers seek new financing models to drive Uganda’s tenfold economic growth

What the report says

Uganda’s banking sector is urging a shift away from reliance on standard commercial loans toward longer-term and more innovative financing models to help support the government’s goal of expanding the economy from about $50 billion to $500 billion by 2040. The proposal is being discussed ahead of the ninth Annual Bankers Conference, set for September 18, where bankers, government officials, investors and private-sector players are expected to examine how to mobilise and deploy capital for the country’s economic transformation.

According to the Nile Post report, bankers want greater use of capital markets, patient capital, structured finance, public-private partnerships, digital financial tools and domestic savings. Uganda Bankers’ Association chairperson Michael Mugabi said the scale of the target requires the sector to rethink how it provides funding, while UBA executive director Wilbrod Owor said non-traditional financing will be needed to unlock underused opportunities in minerals, oil and gas, agriculture and tourism.

Technology and financial inclusion are also part of the debate. Mastercard’s Victor Ndlovu said digital payment systems can widen participation in the formal economy, while Bank of Uganda’s Victor Walusimbi pointed to agent banking and the central bank’s regulatory sandbox as ways to expand access and test new products. The report says the conference will also consider how to channel pensions, insurance funds and other long-term capital into infrastructure, manufacturing, energy and SMEs that may not fit conventional lending rules.