The Bank of Uganda (BOU) has unveiled its Strategic Plan 2022-2027, aimed at promoting macroeconomic stability, financial sector development, and sustainable, people-centred growth.
According to Prof. Augustus Nuwagaba, the Deputy Governor of BOU, the Bank’s role goes beyond monetary policy and extends into the realms of inclusive growth, economic resilience, and national stability.
The Deputy Governor revealed this during the Bank of Uganda Town Hall, a stakeholders’ engagement that was held in Bushenyi town a few days ago.
“In line with our Strategic Plan 2022–2027, we remain steadfast in our commitment to promoting macroeconomic stability, financial sector development, and sustainable, people-centred growth,” Prof. Nuwagaba said.
Key Objectives of the Strategic Plan
Prof. Nuwagaba revealed that the BOU Strategic Plan 2022-2027 has several key objectives, including:
Price Stability
He said the Central Bank aims to achieve this by maintaining low and stable inflation to protect the purchasing power of households.
“Our foremost responsibility is to preserve the value of the Uganda Shilling. By maintaining low and stable inflation (i.e., below 5%), we protect the purchasing power of households, particularly those with fixed or limited incomes, from the corrosive effects of rising prices,” Prof. Nuwagaba said.
“It is important to note that when inflation is under control, families are better able to plan, save, and invest, thereby enabling the economy to thrive. Through careful monetary policy, anchored in data and implemented with transparency, the Bank ensures that inflation expectations remain firmly anchored around the target. As a result, Uganda has maintained low and stable inflation, even in the face of global economic shocks and domestic price pressures,” he added.
Supervision of Financial Institutions
The Bank of Uganda licenses, regulates, and supervises financial institutions across the country. This includes commercial banks, credit institutions, microfinance deposit-taking institutions, foreign exchange bureaus, Credit Reference Bureaus, and large SACCOs.
“Our objective is simple: to protect depositors, ensure ethical banking practices, and foster resilience in the financial sector,” he said, adding, “We enforce compliance with capital adequacy, risk management, and governance standards to ensure that financial institutions holding your money do so with integrity and competence. This is essential not only for financial security but also for economic confidence.”
Payment Systems
Nuwagaba explained that the Central Bank plays a pivotal role in overseeing Uganda’s national payment systems, both physical and digital.
“We ensure these payment systems are secure, efficient, and accessible, enabling businesses and households to move money reliably and affordably,” he said.
“Notably, the growth of mobile money has transformed the payment ecosystem. Today, more Ugandans can conveniently send, receive, and store money using their phones at any time of the day. The Bank supports this digital shift through the regulation of the entities involved, while also strengthening consumer protection and cybersecurity,” he added.
He pointed out that the Bank has also continued to promote financial literacy to ensure that all Ugandans, regardless of their education level or location, can use the available financial services safely and effectively
Financial Inclusion
Nuwagaba said financial inclusion is more than just access to a bank account; it is about creating opportunities for all Ugandans to participate in and benefit from the financial system.
“The Bank, in collaboration with the Ministry of Finance and financial regulatory agencies, are involved in the design and delivery of financial inclusion initiatives. In November 2023, we launched the second National Financial Inclusion Strategy (2023–2028),” Nuwagaba said.
“This strategy envisions a Uganda where every citizen, regardless of location or income, can access quality and affordable formal financial services delivered responsibly. Through partnerships with financial institutions, telecom providers, and development partners, we are bringing financial services closer to the people of Bushenyi and beyond, especially women, young people, and smallholder farmers,” he added.
Agricultural Finance
Nuwagaba noted that the Bank of Uganda recognises the central contribution of agriculture to Uganda’s economy and its importance to employment and rural livelihoods, which is why it administers the Agricultural Credit Facility (ACF), a flagship financial scheme that provides affordable credit to entities involved in the agricultural value chain. The ACF scheme is administered through participating financial institutions (PFIs), namely commercial banks, credit institutions, and microfinance deposit-taking institutions, all of which are supervised by the BoU.
“At a fixed interest rate of up to 12% per annum, the ACF supports commercialisation, mechanisation, and value addition. Projects eligible for financing under the ACF include farming, post-harvest handling, agroprocessing, etc. I strongly encourage the farmers and entrepreneurs of Bushenyi, Mitooma, etc. to take full advantage of this facility,” he said.
Nuwagaba also highlighted the Small Business Recovery Fund (SBRF), which he said is a direct intervention scheme, launched in 2021, aimed at enhancing credit access for small and medium-sized enterprises (SMEs) that were affected by the lockdowns due to the COVID-19 pandemic.
Sustainability
He noted that the Bank also intends to integrate the Environmental, Social, and Governance (ESG) framework into its operations and those of its supervised financial institutions in a bid to operate sustainably. He revealed that in 2023, the BOU launched its Sustainability Standards and Certification Initiative (SSCI) in collaboration with the European Organisation for Sustainable Development.
Promoting Financial Inclusion and Agricultural Finance
Nuwagaba emphasised that BOU is committed to promoting financial inclusion and agricultural finance. “The bank has launched the second National Financial Inclusion Strategy (2023-2028), which aims to bring financial services closer to the people, especially women, young people, and smallholder farmers,” he said, adding, “The ACF provides affordable credit to entities involved in the agricultural value chain, supporting commercialisation, mechanisation, and value addition.”
Supporting Government Financing and Sustainability
He pointed out that the BOU plays a crucial role in the issuance and management of Treasury Bills and Bonds on behalf of the Government of Uganda.
“The bank is also integrating the ESG framework into its operations and those of its supervised financial institutions, promoting sustainability and responsible investment,” Nuwagaba noted.
He emphasised that the Central Bank’s Strategic Plan 2022-2027 is a comprehensive plan aimed at promoting economic growth, stability, and financial inclusion.
The plan’s key objectives, including price stability, supervision of financial institutions, and financial inclusion, are crucial for building a strong, stable, and inclusive financial system that serves all Ugandans.