Uganda's financial system resilient amid global and domestic risks
Michael Atingi-Ego, Governor of the Bank of Uganda, highlighted the resilience of Uganda's financial system at the 10th Financial Sector Stability Forum on December 4, 2025. He noted strong capital and liquidity positions, despite increasing global financial stability risks and persistent domestic operational threats.
Domestic strength meets global headwinds
Uganda's financial system has maintained soundness and resilience over the past year, underpinned by robust capital and liquidity across supervised institutions.
Favourable domestic economic conditions, including stable inflation and steady activity, have kept macro-financial vulnerabilities moderate.
However, the global environment presents growing risks, with stretched asset valuations, rising sovereign debt burdens, tightening geopolitical tensions, and persistent international market uncertainty.
These dynamics elevate the potential for sudden price corrections, amplify sovereign debt vulnerabilities, and contribute to volatile capital flows, posing spillover risks to the domestic financial system.
Domestically, despite strengthened liquidity, elevated operational risks like cybersecurity threats and fraud incidents persist, necessitating ongoing vigilance and enhanced internal controls.
Crisis readiness and innovation for future growth
A key achievement was the successful Crisis Simulation Exercise, which significantly improved institutional coordination and tested readiness for systemic shocks.
The Forum is now assessing follow-up actions to strengthen crisis management frameworks.
Parallel efforts in financial innovation, particularly by the Special Technical Working Group on Blockchain Technology, have advanced in identifying use cases, assessing risks, and exploring regulatory approaches for safe adoption.
Looking ahead, Uganda's financial sector has opportunities to deepen stability, efficiency, and inclusion through sustainable finance, increased digitalisation, and ongoing regulatory modernisation.
Seizing these opportunities requires continued vigilance and coordinated policy action.