Programme Responsible Officer: Director Economic Affairs

The Ministry under this Program is mandated to promote financial sector development and ensure financial deepening. In the FY 2018/19, the Program received UShs 69.29bn by end of December 2018 against an appropriation of UShs 158.42bn. Out of this, Ushs 60.97bn was spent representing 88% absorption. Through this Program, the Ministry commenced operationalization of Uganda Microfinance Regulatory Authority (UMRA), the National Payment Systems Policy and the Principles for the National Payment Systems Bill, 2018were presented and approved by Cabinet. The Microfinance Deposit-taking Institutions (Amendment) Bill, 2018 was also drafted. The Microfinance Support Centre Ltd (MSC) disbursed a total of 74 loans under both Islamic and conventional financing valued at UShs 5.36bn. URBRA fast-tracked the implementation of the Risk Based supervision. UMRA conducted onsite and offsite inspections for Tier IV microfinance and money lenders institutions and reports were prepared for management decisions.
In the FY 2019/20, the Financial Sector Development Program has been allocated UShs 200.558bn compared to Ushs 162.562bn allocated in FY 2018/19. The increment is as a result of increased external financing under PROFIRA. The allocation will enable alleviation of rural poverty by supporting development of community savings and credit groups (CSCGs) in the poorer areas of Uganda (70% of CSCG membership will be women, and 15% youth).
The Ministry will further develop the agriculture finance policy and strategy as well as the Deposit Protection Fund Regulatory framework and the database on the Non-bank financial sector. Support to the operations of the Uganda Microfinance Regulatory Authority (UMRA), issuing Anti-Money Laundering regulations as well as Capitalization of Financial Institutions among other initiatives will be undertaken

Programme Objective :
i. Providing policy oversight and establish the database on all financial Institutions in the Country.
ii. Periodically review and analyze the general performance of the financial sector to inform policy.
iii. Initiate policies, Laws for deepening and improving the penetration of the financial sector.
iv. Provide appropriate legislation that makes the financial system efficient and stable, protects the consumers of financial products, and creates a climate for competition and further development.
v. Support effective regulation in respect to financial institutions.
vi. Create a conducive policy environment for product development with Gender Equity perspectives.
vii. Participate in the formulation of EAC legislations relating to the financial sector to achieve financial convergence.
viii. Follow developments in the financial markets and business sector in order to assess the need for new policy, new legislation or amendments to existing laws.
ix. Provide policy advice for regulatory bodies in the financial sector (BOU, CMA, IRA, URBRA, UMRA and FIA).
x. Participate in the formulation of EAC legislations relating to the financial sector to achieve financial convergence.
xi. Formulate rational and sound financial policies that contribute to national and global financial stability.
xii. Provide briefing and policy advice on the financial sector.