Atingi-Ego demands bank plans for UGX 490 trillion lending push
Bank of Uganda Governor Michael Atingi-Ego instructed commercial banks to submit board-approved strategies by early October 2026 to operationalize their UGX 490 trillion credit commitment, backing the national goal to expand GDP tenfold to $500 billion by 2040.
Funding the UGX 490 trillion pledge
Speaking at the 9th Annual Bankers' Conference in Kampala, Governor Atingi-Ego called on lenders to move from declarations to execution.
The central bank requires all supervised institutions to submit detailed preparation strategies with measurable key result areas by early October 2026.
Atingi-Ego emphasized that delivering the UGX 490 trillion private sector credit pledge requires expanding both sides of bank balance sheets, warning that asset growth must be matched by deposit mobilization and capital formation.
“A commitment that never reaches a balance sheet is only a speech,” Atingi-Ego said, urging institutions to develop cash-flow lending, venture debt and sustainable finance models.
Macroeconomic baseline and sectoral targets
The lending drive supports Uganda's strategy to expand its economy from $50 billion to $500 billion by 2040.
The Governor pointed to stable macroeconomic fundamentals: inflation averaged 3.3 percent over the twelve months to July, below the 5 percent target, while real GDP grew 6.4 percent in FY2025/26. Banking sector health improved, with credit expanding 16.1 percent and non-performing loans dropping to 2.67 percent, their lowest level since 2011.
Priorities include agro-processing, tourism, minerals and tech.
Ambition requires real liabilities
Atingi-Ego rightly demands that ambitious lending pledges be backed by actual deposit growth and fresh equity.
Yet pushing for massive credit expansion while strictly enforcing prudential limits creates a difficult balancing act.
The central bank must actively deepen non-bank capital markets to avoid overstretching commercial lenders.