By KT Reporter
The Ministry of Finance, Planning, and Economic Development has urged financial sector players to design products that truly support growth, rather than focusing solely on lending.
Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, said the current mode of operation in the industry has left gaps in advancing financial inclusion, which is vital for national transformation. As a result, a significant portion of the population remains outside the money economy.
Ggoobi cited microfinance products as an example, noting that while they account for a growing share of Uganda’s credit portfolio, many of them do not contribute meaningfully to economic development or poverty reduction.
He emphasised that effective microfinance interventions should target existing enterprises to help them grow and strengthen, rather than simply offering credit to create wealth.
Ggoobi made the remarks during the Annual Financial Inclusion Forum 2025, organised by financial sector stakeholders under the leadership of the Bank of Uganda (BoU). The forum was held under the theme, “Access to Usage: Advancing Inclusive Financial Product Uptake in Uganda.”
He also defended the Bank of Uganda regarding its perceived failure to protect consumers from predatory lenders and exploitative financial institutions. Ggoobi clarified that the Central Bank’s primary mandate is to ensure financial stability through the enforcement of loan repayments, not consumer protection.
Nevertheless, he noted that BoU has made strides by establishing a complaints desk and promoting financial literacy programs to enhance consumer awareness. According to Ggoobi, efforts are underway between the Ministry of Finance, Bank of Uganda, Financial Sector Deepening Uganda (FSDU), and Nshuti Financial Services to establish a Customer Reference Bureau, which will help safeguard consumer interests.
The PSST further urged the financial industry to develop pro-women financial products, citing the persistent gender gap in financial access. He observed that women lag behind men in both digital access and formal financial participation, yet evidence shows that credit extended to women yields higher returns.
He stressed the need to design financial products and digital tools that ensure privacy and confidentiality, allowing women to access and manage their finances independently, especially in contexts where male influence may be restrictive.
According to the FinScope 2023 Report, only 62 per cent of Ugandan women hold accounts with formal financial institutions compared to 82 per cent of men, highlighting a substantial disparity in access to financial services and credit.
Finance Minister Matia Kasaija expressed optimism that ongoing initiatives, such as the digitalisation of government financial systems and wealth creation programs, will strengthen economic growth. However, he urged the Central Bank to intensify regulation of supervised financial institutions, particularly SACCOs, and work to reduce the high cost of credit.
The Deputy Governor of the Bank of Uganda, Augustus Nuwagaba, underscored the importance of promoting savings products to increase the pool of affordable capital for entrepreneurs. Citing his research, he noted that all developed economies relied primarily on internally generated resources to drive their growth.
Nuwagaba assured the public that BoU, in collaboration with relevant ministries and agencies, has created a more conducive regulatory environment through legislation such as the Competition Act 2024, Consumer Protection Regulations, and provisions under the National Payment Systems Act.
These frameworks, he said, are intended to promote fairness, transparency, and accountability across the financial sector. He concluded by calling for shared responsibility among all stakeholders, financial institutions, FinTechs, civil society, and consumer associations, to work together in protecting and empowering the Ugandan financial consumer.
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