Bank of Uganda Moves to Establish a Cyber Incident and Forensics Investigation Laboratory As cyber threats surge in Uganda’s financial sector, the Bank of Uganda takes a decisive step to fortify its defenses. A state-of-the-art Cyber Incident and Forensics Investigation Laboratory promises to revolutionise cybersecurity, ensuring resilience against rising digital crimes and financial fraud.

In a significant move to combat the growing threat of cybercrime, the Bank of Uganda (BoU) has initiated the establishment of a Cyber Incident and Forensics Investigation Laboratory. This initiative aims to enhance cybersecurity measures within the country’s financial sector, protecting institutions, businesses, and consumers from escalating digital threats.

The project is currently in the procurement phase, which was initiated in August 2024, and is being managed through an open international bidding process. It aims to enhance the BoU’s capability to detect, analyse, and respond to cyber incidents, thereby ensuring a secure financial ecosystem amid the rise of digital financial transactions.

The Growing Cybersecurity Challenge

With the rapid digital transformation in Uganda, cyber threats have become increasingly sophisticated and frequent. The banking sector, which has embraced mobile and online banking services, has turned into an attractive target for cybercriminals. From identity theft and SIM swap fraud to advanced phishing schemes, Ugandan financial institutions are experiencing a surge in cyberattacks.

According to PwC’s Global Economic Crime and Fraud Survey 2024—Uganda Report, cybercrime has become the country’s second most prevalent economic crime, representing 37% of reported cases, up from 12% in 2020. This alarming increase is largely attributed to the widespread adoption of digital technologies and their vulnerabilities. Cybercriminals exploit weaknesses in financial institutions’ security infrastructures, often targeting inadequate authentication systems and unencrypted data.

To counter these threats, the Bank of Uganda’s new laboratory will be equipped with cutting-edge forensic and cybersecurity tools. This will empower the central bank to investigate, analyse, and mitigate cyber threats effectively in real time. The initiative also highlights the need for financial institutions to align with global best practices in cybersecurity, reinforcing resilience against cyber threats.

The Vision: A Secure Banking Environment

The Cyber Incident and Forensics Investigation Laboratory is expected to provide advanced capabilities in cyber threat intelligence, digital forensics, and real-time incident response. According to the Bank of Uganda’s procurement document, the lab will serve multiple purposes. It will enhance cyber incident response by enabling real-time detection and mitigation of cyber threats. It will also conduct forensic investigations to trace, analyse, and combat cybercrimes affecting the banking sector. Additionally, it will improve regulatory oversight and compliance enforcement, ensuring that financial institutions adhere to strict cybersecurity standards. Finally, it will build cyber intelligence and predictive analytics to anticipate and prevent cyber threats before they escalate.

As cyber threats continue to evolve, the laboratory will serve as a centralised hub for cybersecurity monitoring and intervention. The BoU plans to implement an extensive training programme to equip financial professionals with the skills necessary to effectively handle emerging threats. The laboratory will not only tackle immediate cyber risks but will also contribute to long-term cybersecurity resilience by promoting research and development in digital security frameworks.

Scope of Work: Establishing a World-Class Cybersecurity Hub

The Terms of Reference in the BoU’s procurement document outline an ambitious plan for the laboratory, requiring the selected service provider to manage the facility’s design, supply, installation, and commissioning. The laboratory is expected to feature state-of-the-art security tools and infrastructure, including network traffic analysis systems to identify anomalies and potential security breaches in real time. Mechanisms for digital evidence collection and preservation will be implemented to ensure that forensic data is properly stored and legally admissible. A threat intelligence integration system will provide a centralised database of cyber threats for predictive analysis. Additionally, the facility will house a Security Operations Centre with 24/7 real-time monitoring of cyber activities to prevent attacks before they happen. Furthermore, capacity-building and training programmes will be established to offer specialised cybersecurity training for financial professionals, thereby strengthening Uganda’s overall cyber resilience.

The scope of work also extends to developing regulatory frameworks to guide financial institutions in implementing cybersecurity policies that align with national and international standards. The laboratory’s deployment will serve as a benchmark for other institutions, encouraging sector-wide compliance with robust security protocols. Furthermore, the initiative seeks to promote collaboration with international cybersecurity experts, ensuring that Uganda remains ahead in proactively addressing cyber threats.

A Response to Increasing Cyber Threats

Uganda’s financial institutions have remained on high alert due to the rise in cyber-related crimes. Attacks such as Business Email Compromise, email spoofing, and invoice fraud have cost organisations millions, with fraudsters capitalising on weak security measures. Cybercriminals persist in exploiting artificial intelligence-driven techniques, rendering traditional security measures inadequate.

The PwC 2025 East Africa Digital Trust Insights Survey highlights key cybersecurity trends in Uganda. The survey reveals that 74% of Ugandan businesses regard cyber risks as their primary concern, surpassing the global average. Furthermore, 92% of organisations indicate that new cybersecurity regulations have contributed to enhanced security compliance. Nevertheless, only 9% of Ugandan firms utilise financial models to quantify cyber risks, underscoring the need for improved risk assessment. AI-driven threats, such as deepfake scams, phishing attacks, and malware, are also escalating, presenting a novel set of cybersecurity challenges.

Furthermore, cyber fraudsters have exploited social engineering techniques, targeting unsuspecting employees and customers to gain unauthorised access to sensitive financial information. The increasing reliance on cloud-based technologies has also broadened the attack surface, necessitating comprehensive security policies that address third-party risks. The Cyber Incident and Forensics Investigation Laboratory is anticipated to play a crucial role in tackling these pressing challenges by implementing state-of-the-art cyber defence mechanisms.

What This Means for Uganda’s Financial Sector

The establishment of a Cyber Incident and Forensics Investigation Laboratory marks a significant step in Uganda’s digital security strategy. Improved financial security is one of the key anticipated outcomes, as banks and financial institutions will have enhanced defences against cyber threats. Greater regulatory oversight will ensure that the BoU can enforce stricter cybersecurity compliance among financial institutions. Increased public trust in digital banking will be fostered, as stronger fraud prevention and detection measures will instil more confidence in consumers regarding online financial services. Uganda’s initiative also positions it as a leader in cybersecurity resilience within East Africa, setting a benchmark for financial cybersecurity in the region.

Conclusion: A Milestone in Uganda’s Cybersecurity Evolution

The Bank of Uganda’s Cyber Incident and Forensics Investigation Laboratory represents an innovative initiative aimed at transforming the country’s cybersecurity landscape. As cybercrime escalates, this investment exemplifies a proactive strategy for safeguarding the financial sector.

As Uganda continues to digitise financial services, ensuring robust cybersecurity frameworks will be critical. This initiative reaffirms the Bank of Uganda’s commitment to fostering a safe, reliable, and secure banking environment for both businesses and consumers. The success of this project will rely on selecting the appropriate cybersecurity partner and effectively implementing it. If executed as intended, Uganda could emerge as a regional leader in cyber resilience, setting a benchmark for financial cybersecurity across East Africa.