In remarks at the 9th Annual Bankers Conference, Finance Minister Henry Musasizi urged banks to reduce average lending rates, currently between 18% and 20%, and increase long-term financing for agro-industrialization, tourism, minerals including oil and gas, and science, technology and innovation. He invited banks to sign the ATMS Financing Compact, which would establish measurable commitments on credit growth, pricing, productive sector lending and financial inclusion to support Uganda’s goal of expanding its economy from USD 50 billion in fiscal year 2025/26 to USD 500 billion by 2040. Musasizi highlighted the gap between priority sectors’ economic contribution and their access to finance. Agriculture accounts for 26.2% of gross domestic product but receives about 12% of financial sector lending, while tourism receives less than 2% and minerals less than 3%. He called for better credit assessment, lawful use of data and wider risk-sharing and guarantee arrangements, alongside greater use of infrastructure, project and green bonds and equity financing. The government estimates that private sector credit must rise from UGX 28 trillion to UGX 490 trillion by 2040, while capital markets mobilization must increase from UGX 1.5 trillion to UGX 440 trillion. The minister also sought broader financial access for 8 million farmers targeted for commercialization under the Parish Development Model and said the government is working to increase Uganda Development Bank’s capitalization to UGX 2 trillion. Bank of Uganda Governor Michael Atingi-Ego cautioned that credit growth must be supported by deposits, long-term funding and capital, with pension funds, insurers, development finance institutions and capital markets complementing bank lending.
2026-09-23Ministry of Finance (Uganda)
Uganda Ministry of Finance urges banks to lower 18% to 20% lending rates and expand priority sector financing
Uganda Finance Minister Henry Musasizi urged banks to reduce lending rates from their current 18% to 20% range and direct more long-term credit to priority productive sectors. He invited banks to sign an ATMS Financing Compact containing measurable commitments on credit growth, pricing, sector lending and financial inclusion. Private sector credit is expected to rise from UGX 28 trillion to UGX 490 trillion by 2040 to support Uganda’s tenfold growth agenda.