New BoU chiefs list priorities

The newly-appointed Governor of the Bank of Uganda (BoU), Dr Michael Atingi-Ego, and his deputy, Prof Augustus Nuwagaba, yesterday unveiled their priority areas as they prepare to begin their new roles.
Dr Atingi-Ego and Prof Nuwagaba, whose appointments were on Monday confirmed by President Museveni, shared their plans with reporters after meeting with the Parliament Appointments Committee.
“One of the key challenges that keeps us awake at night is cybersecurity,” Dr Atingi-Ego said.

“[We want to find solutions on] how we can ensure that our financial sector is cyber-proof, and so we will have to work with all the concerned stakeholders to see how we can enforce cybersecurity guidelines throughout the financial sector,” he said.
He explained that the Central Bank will enhance its risk management frameworks, given the fact that risks and vulnerabilities are evolving daily.

“So we need to keep up to ensure that our systems and operations are well protected,” he said.

Dr Atingi-Ego also emphasised the importance of protecting the economy from external shocks by monitoring developments in the global economy.
“There are many uncertainties unfolding that will impact the domestic economy. So we have to be innovative, anticipate what is going to happen, and take appropriate policy responses to mitigate any possible adverse consequences for us,” he said.

The new BoU Governor further noted their aim to support the economic growth of between six and seven percent.

“We think that in 2025, inflation will be anywhere between four and five percent, and this is consistent with the growth target that we are looking at in the medium term of six to seven percent,” he explained.

“We have been having inflation of between 3 and 3.8 percent and the growth was trending below 6 percent," he added.

He explained that their medium-term objective is 6 to 7 percent. “So we are kind of like allowing inflation to ease up consistent with that growth. Remember, the government objective for inflation is five percent. So we’re gradually moving towards the five percent, which is what we think will sustain growth going forward,” he added.

Dr Atingi-Ego, who has served as both Deputy BoU Governor and Acting Governor, was appointed by President Museveni to replace Emmanuel Tumusiime Mutebile, who died on January 23, 2022. Uganda has operated without a substantive Governor for more than three years since his death. President Museveni also appointed Prof Nuwagaba as the Bank’s Deputy Governor.

Prof Nuwagaba stressed the need for the country to reduce its debt accumulation.
“We told Members of Parliament that there is a need for the government to reduce borrowing because when you borrow as a government, you compete with the private sector and that crowds out the private sector,” he said.

He said MPs were concerned about macroeconomic stability and the soundness of the financial sector.
“We were able to explain the fundamentals that underpin a performing economy, and of course, Parliament was interested in knowing what factors will make this economy stable and also grow, and we were able to explain the factors, for example, that create debt,” Prof Nuwagaba said.

He also noted the low saving rate, which necessitates increased economic activity. “Money must move very quickly from one person to another. It facilitates economic activity,” he said. 
“So we told Parliament that we need to work with all other stakeholders to ensure that BoU can implement policies, especially the monetary ones,” he added.