Business community ready to work with new Bank of Uganda governor

15 February 2025, 11:09 pm

By Ronald Ssemagonja

Failure of any business affects not only the direct beneficiaries but also the ones that indirectly benefit from it during its period of success. It is against this background that the business community in the country is very optimistic that if they cooperate very well with the top management of the central bank, the chances are high to avoid this. Speaking to Mr Kamya Willy, a dealer in shoes in Kampala, he believes that the appointment of the new governor Dr. Michael Atingi-Ego and his deputy, Prof. Augustus Nuwagaba, is giving them hope that most of the challenges they have been facing in some of the commercial banks will reduce. “I thank the president for appointing a new governor and his deputy. I believe our businesses are going to thrive. However, we request that the governor help us with the issue of commercial banks whose rates at which they lend us, it a bit high.” he said.

In exercise of the powers vested in the president, under Article161 clause (3) (a) of the Constitution of the Republic of Uganda (1995) as mended, which states that the governor, the deputy governor and all other members of the board shall be appointed by the president and approved by parliament, this was done, waiting for the parliamentary vetting committee for results.

The journey of Dr. Michael Atingi-Ego started in 1996 after pursuing a PhD in economics from Liverpool University. He also holds an MSc in international economics and banking from Cardiff Business School, University of Wales (1991) and a BSc in Economics from Makerere University. Following the death of Professor Emmanuel Tumusiime-Mutebire in 2022 who was the governor, Dr. Atingi-Ego had served as deputy governor since 23rd April 2020, was appointed acting governor Bank of Uganda.

Dr. Atingi-Ego managed to implement significant reforms to strengthen the financial sector. Notably, he increased the minimum paid up capital requirements for microfinance deposit-taking institutions from Uganda Shillings 500 million to Uganda Shillings 19 billion. This was aimed to ensure institutions held enough capital to protect depositors and creditors from potential losses. Ating-Ego also oversaw a comprehensive reshuffle of the bank’s leadership in response to longstanding concerns from various staff members. This followed a KPGM review conducted in the year 2023 and was approved by the board on 7th May 2024. These changes were designed with intentions to enhance the bank’s efficiency by prioritizing experience, skills and qualifications.