Atingi-Ego: Custodial services vital for Uganda's growth
Bank of Uganda Governor Michael Atingi-Ego launched Centenary Bank's Custodial Services, a key development for Uganda's financial sector. This initiative supports the nation's Tenfold Growth Strategy to expand its economy to US$500 billion by 2040.
The bedrock of financial trust
Custodial services are fundamental to a resilient financial system, ensuring assets are safe, transactions are executed with integrity, and capital is protected.
They function as a financial market infrastructure hub, safeguarding ownership, validating transactions, containing risks, and sustaining confidence across the entire system.
In Uganda, the retirement benefits sector manages an estimated UGX 30 trillion in assets, underscoring the importance of professional, automated, and well-governed custody arrangements.
These frameworks contribute to financial stability by reinforcing asset segregation, enhancing transparency, and reducing operational and governance risks.
Their development strengthens investor confidence, enhances market discipline, and supports the efficient allocation of long-term capital, attracting both domestic and international institutional investors.
Patient capital for a tenfold future
Uganda's Tenfold Growth Strategy aims to expand the economy to US$500 billion by 2040, requiring the mobilization of over UGX 400 trillion in patient capital.
This long-term financing is crucial for infrastructure, businesses, and job creation, enabling investors to commit to Uganda's long-term potential.
The Bank of Uganda maintains price stability with an inflation target of 5 percent, providing a predictable environment for planning.
Real GDP growth reached 6.3 percent in FY2024/25, projected to accelerate to 6.5–7.0 percent in FY2025/26. Inflation remains subdued at 3.4 percent, and foreign exchange reserves stand at US$6 billion, equivalent to four months of import cover.
Uganda's progress is recognized internationally, rising to third place in the Absa Africa Financial Markets Index.
A necessary step, not a silver bullet
While Centenary Bank's new services are a vital step for Uganda's financial infrastructure, they address only one facet of broader market development.
The speech itself highlights suboptimal pension sector development as a persistent drag on performance, indicating systemic challenges remain.
True transformation requires comprehensive reforms beyond individual institutional initiatives.