Michael Atingi-Ego: Opening Remarks - 10th Meeting of the Financial Sector Stability Forum (FSSF)

Why It Matters

The address underscores how external shocks and emerging tech risks could test Uganda’s financial resilience, guiding policymakers and investors on needed safeguards. It signals a coordinated push toward innovation while preserving stability, shaping the country’s growth trajectory.

Key Takeaways

• Uganda's banks maintain strong capital and liquidity
• Global debt and geopolitical tensions raise spillover risks
• Cybersecurity incidents persist despite overall decline
• Crisis simulation boosted coordination for systemic shock response
• Blockchain group outlines use cases and regulatory approach

Pulse Analysis

Uganda’s financial system entered 2025 on a solid footing, with banks reporting robust capital buffers and ample liquidity that have insulated the sector from external shocks. The domestic economy benefited from stable inflation, steady growth, and resilient private‑sector activity, keeping macro‑financial vulnerabilities moderate. Yet the global backdrop grew more precarious, as stretched asset valuations, rising sovereign‑debt loads and heightened geopolitical tensions amplified the probability of abrupt capital‑flow reversals. For policymakers, these dynamics underscore the need to monitor spill‑over channels and preserve the buffer built into Uganda’s banking system. Domestically, operational risk profiles have shifted, with cyber‑attacks and fraud incidents persisting despite an overall decline. The Bank of Uganda’s recent crisis‑simulation exercise demonstrated that coordinated response protocols can dramatically reduce systemic fallout, reinforcing the value of regular stress‑testing and cross‑institutional communication. Strengthening internal controls, enhancing threat‑intelligence sharing, and investing in resilient IT infrastructure are now top priorities for banks and regulators alike. These measures aim to safeguard the sector’s integrity while preserving confidence among depositors and investors amid an increasingly digital financial landscape. The Forum’s focus on financial innovation reflects Uganda’s ambition to blend stability with growth. The Special Technical Working Group on blockchain has mapped practical use cases—from cross‑border payments to land‑title registries—while outlining risk‑mitigation frameworks that balance speed with consumer protection. Simultaneously, the rise of sustainable finance and the push for broader digital inclusion are prompting regulatory modernization, encouraging green‑bond issuances and fintech licensing reforms. By aligning these initiatives with rigorous risk oversight, Uganda positions its financial sector to attract investment, expand services, and drive inclusive economic development.