By Joseph Kanyamunyu
Director, Public Affairs & Government Relations, Publics Africa Communications
In February 2024, Uganda crossed a critical threshold. The Financial Action Task Force (FATF), the global authority on combatting illicit finance, removed our country from its grey list a designation that signaled “strategic deficiencies” in anti-money laundering and counter-terrorism financing systems.
This delisting is not just a bureaucratic milestone. It is a reset, a pivotal opportunity to reshape how the world sees Uganda, and how we see ourselves as an economy open for responsible business.
Let’s not underestimate what this took. A battery of reforms was implemented: overhauling legal frameworks and strengthening regulatory supervision, enforcing beneficial ownership disclosures, and adopting a risk-based approach to financial oversight. The coordinated effort by institutions such as the Ministry of Finance, Financial Intelligence Authority (FIA), and Bank of Uganda is commendable.
But the real measure of this success lies ahead in how we consolidate these gains and turn them into concrete outcomes for the Ugandan people.
Why This Matters for Investment and Jobs
When Uganda was grey-listed, it came at a cost. Investors grew cautious. International banks added layers of scrutiny. Our ability to transact globally became slower and more expensive. Whether we acknowledged it or not, the label created a subtle but powerful drag on growth.
Now, with our name cleared, Uganda can reposition itself as a credible and stable destination for investment. The ripple effects are real:
– Perceived Risk Drops: Uganda is now seen as a safer place to do business. This lowers the cost of capital and attracts long-term investment.
– New Investors Take Interest: Development finance institutions, commercial banks, fintech investors, and trade partners can now engage with fewer compliance-related hesitations.
– Local Financing Improves: Domestic SMEs, the lifeblood of our economy are better positioned to access funding in a cleaner, more efficient financial ecosystem.
– Jobs Are Created: As more institutions enter the market and local enterprises expand, job opportunities grow in finance, construction, logistics, manufacturing, agribusiness, and digital services.
Financial integrity is no longer just a regulatory checkbox. It is a catalyst for growth. And it’s now part of Uganda’s investment story.
We Must Build a Culture, Not Just a Case File
Being delisted is not the finish line. It is merely the end of the beginning.
The international community will now be watching to see if the reforms are institutionalized or if they dissolve without pressure. That’s why it’s critical that we build a compliance culture, not just tick legal boxes.
This means:
– Ongoing collaboration between regulators and the private sector
– Regular training, audits, and sector-wide compliance innovation
– Strong internal systems across financial institutions and government entities
– Transparent reporting and risk-based supervision
– An active, empowered FIA supported by a whole-of-government approach
Uganda has a real opportunity here: to become a regional standard-bearer in financial integrity and responsible investment.
The Way Forward
This moment calls for celebration but more importantly, it demands consolidation, consistency, and vision. We must safeguard the progress made and translate it into meaningful reforms across the entire economic value chain.
We have proven we can rise to the challenge. Now we must prove we can sustain the standard.
Joseph Kanyamunyu is Director of Public Affairs & Government Relations at Publics Africa Communications. He advises governments, financial institutions, and development agencies across East Africa on strategic communications and stakeholder engagement.
