Bank of Uganda Deputy Governor Prof. Augustus Nuwagaba has urged citizens to redirect savings from bank accounts into productive ventures, arguing that such investments could elevate household incomes, generate employment, and bolster Uganda’s exports and foreign exchange reserves—key factors in stabilizing the Uganda shilling. His remarks were delivered during a two-day town hall meeting in Kabale District, where he addressed district leaders, business representatives, academics, and other stakeholders at White Horse Inn. Nuwagaba stressed that enhancing local production and export capabilities is critical to meeting import demands and ensuring economic resilience.
Nuwagaba outlined the dynamics influencing the Uganda shilling’s value, noting that foreign exchange availability hinges on factors like remittances, exports, and foreign direct investment. He highlighted government-backed financial programs in Kabale District, including the Agricultural Credit Facility, which has disbursed Shs13.59 billion to 325 beneficiaries, and the Small Business Fund, which provided Shs636 million to local enterprises. These initiatives, he said, aim to stimulate agricultural output and agro-processing while supporting small-scale entrepreneurs.
However, Kabale District Local Council 5 Chairperson Denis Nzeirwe raised concerns about the Agricultural Credit Facility’s implementation, questioning whether the reported Shs13.59 billion in disbursements had reached farmers as claimed. His remarks underscored ongoing debates about the accessibility and effectiveness of agricultural financing in the region. Nuwagaba reiterated that expanding productive investment and domestic output would strengthen Uganda’s export base, improve foreign exchange earnings, and elevate living standards, but the district’s leadership emphasized the need for transparency and accountability in fund distribution.
The discussion highlighted the tension between national economic strategies and localized challenges in implementing financial programs. As stakeholders in Kabale continue to scrutinize the impact of these initiatives, the broader implications for Uganda’s economic stability remain a focal point for policymakers and communities alike. Nuwagaba’s call for strategic investment aligns with efforts to diversify the economy and reduce reliance on imports, but its success will depend on addressing gaps in execution and ensuring equitable access to resources.