The Deputy Governor of the Bank of Uganda, Prof Augustus Nuwagaba, has asked Ugandans to avoid keeping large sums of money idle in bank accounts and instead invest in productive ventures that can generate income and create jobs.
Prof Nuwagaba said increased investment in production would not only improve household incomes but also boost Uganda’s exports and foreign exchange earnings, which are critical to supporting the stability of the Uganda shilling.
He was speaking on Friday during the second day of a Bank of Uganda town hall meeting attended by district leaders, members of the business community, academia and other stakeholders at White Horse Inn in Kabale District.
Prof Nuwagaba said Uganda needs to increase the production of goods and services for both the domestic and export markets to generate enough foreign exchange to meet the country’s import obligations.
“Those who have families should work for their families. Make sure you are doing something productive, especially working together with your household partners,” he said.
He discouraged Ugandans from engaging in unproductive activities and blaming the government for their economic challenges, urging households to embrace hard work, saving and investment.
“Do not simply wake up in the morning, go and drink, and then blame the President for your poverty. Then you become jealous of another person who wakes up every day and works hard,” Prof Nuwagaba said.
He urged Ugandans to learn from people who work hard and invest in their families and businesses rather than envy their success.
Prof Nuwagaba also revealed that 325 beneficiaries in Kabale District had accessed Shs13.59 billion under the Agricultural Credit Facility (ACF) to support agricultural production and agro-processing.
The government contributed Shs6.81 billion towards the financing accessed by the beneficiaries, he said.
He added that 70 people in the district had benefited from the Small Business Fund (SBF), accessing financing worth Shs636 million, with the government contributing Shs318 million.
“These interventions demonstrate the government’s commitment to supporting agricultural transformation, promoting enterprise growth and improving access to affordable credit for businesses and households in Kabale,” Prof Nuwagaba said.
He urged district leaders to disseminate information about the two financing schemes to farmer groups, SACCOs, women and youth enterprises and small businesses that qualify but may not know how to access the funds.
The ACF provides financing for eligible investments in agriculture and agro-processing, including machinery and equipment, post-harvest handling, farm infrastructure and value addition. The SBF supports eligible small businesses to recover, stabilise and grow.
Prof Nuwagaba said the financing opportunities were particularly important for Kabale and the wider Kigezi sub-region, where agriculture remains a major source of livelihoods.
He said Kigezi is among the areas covered by the Uganda Climate-Smart Agricultural Transformation Project, whose value chains include dairy, aquaculture and fisheries, bananas and coffee.
The region, he said, could benefit by increasing production while improving productivity, storage, processing, value addition and access to markets.
Prof Nuwagaba also explained that the strength of the Uganda shilling is influenced by the amount of foreign currency flowing into the country compared with demand for it.
He said remittances from Ugandans working abroad, exports of goods and services and foreign investment are among the major sources of foreign exchange.
“Ugandans working abroad are earning money and sending part of it back to Uganda. These remittances are an important source of foreign exchange. They help Uganda to meet its external obligations and support economic activity at home,” he said.
Prof Nuwagaba said increased foreign exchange inflows raise the supply of dollars and other currencies, which can support the value of the shilling, while lower inflows can put pressure on the local currency.
He said Uganda imports fuel, machinery, vehicles, spare parts and other goods, making it necessary for the country to increase its export earnings.
“When we export more and earn more foreign exchange, we are better able to pay for the goods we import,” he said.
Prof Nuwagaba said the government’s focus on production and exports is therefore important for improving Uganda’s balance of trade and strengthening the country’s external position.
He also linked economic stability to peace and security, saying investors are unlikely to commit resources to countries experiencing prolonged instability.
He urged Ugandans to value and protect peace and security, saying they provide an important foundation for investment and economic development.
“You should not take peace and security for granted because you do not know what the situation looks like when you do not have it,” he said.
Prof Nuwagaba, who previously worked with the African Development Bank in countries including Somalia, South Sudan and the Central African Republic, said his experience had exposed him to the economic effects of insecurity.
He said the Bank of Uganda’s responsibility includes maintaining monetary and financial stability while implementing relevant laws and government policies.
Prof Nuwagaba also urged leaders and other people entrusted with public responsibilities to remain accountable and serve the interests of the people.
“Whether it is a woman who has been entrusted with money, a public servant or somebody serving in an institution, we must remember that we are handling people’s money and people’s trust. We should not betray that trust,” he said.
He encouraged leaders not to give up on serving their communities, drawing from the biblical message in Galatians Chapter Six, which urges believers not to become tired of doing good.
“Let us serve. Let us serve this country. This country is ours. It is Uganda. And if you do not want to serve this country, who is going to serve it on your behalf?” he asked.
The Bank of Uganda Secretary, Susan Wasagali Kanyemibwa, called for closer collaboration between the Central Bank, local leaders, the private sector and communities to promote sustainable economic prosperity.
Kanyemibwa said the Central Bank cannot address all economic challenges alone, urging district leaders and other stakeholders to share concerns affecting their communities so that they can be addressed by the relevant institutions.
She said stronger collaboration between financial institutions, local governments, businesses and communities would help identify gaps in service delivery and ensure that available economic opportunities reach the intended beneficiaries.
