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The rapid growth of digital and mobile lending is transforming Uganda’s financial landscape. It is expanding access to credit for millions who were previously excluded from the formal banking system. But as financial inclusion deepens, a new challenge is emerging: a rise in loan defaults and growing concerns over the sustainability of unsecured digital credit. A new Bank of Uganda Bank Lending Survey Report for the first quarter of the 2025/26 financial year indicates that commercial banks are warning that the very innovation meant to bridge access gaps is now creating new vulnerabilities in the credit market. At least 13%…
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The United States of America has moved to reset relations with Uganda, with Secretary of State Marco Rubio speaking by phone with President Yoweri Museveni about “opportunities to deepen U.S.–Uganda cooperation on migration, reciprocal trade, and commercial ties.” In a readout attributable to U.S Principal Deputy Spokesperson Tommy Pigott, the U.S Secretary who spoke to President Museveni yesterday also thanked Uganda for serving as a pillar of regional stability through its peacekeeping roles in East Africa. The outreach comes as both sides test whether months of friction over rights and aid can give way to a more pragmatic and economics-first…
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Kampala’s residential property market is in the midst of a quiet but telling transformation. Once dominated by Western expatriates tied to NGOs, diplomatic missions, and donor-funded projects, the demand landscape is increasingly being driven by Asian expatriates—particularly professionals from China, South Korea, and other Asian economies—associated with large-scale infrastructure, industrial, and corporate investment projects. The sudden suspension of U.S. aid to Uganda has had a direct impact on the sector. The aid cut has left a UGX 604 billion hole in the national health budget, forcing several large NGOs and related service providers to scale back or exit leases entirely. …
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By Africa Oil & Power On Wednesday, U.S. President Joe Biden was sworn into office, ushering in a new administration, new foreign policy and a new approach to U.S. trade and investment in Africa.For its part, the Trump administration had not been short on growing U.S. private sector involvement in Africa, specifically under its trademark initiative, Prosper Africa. Designed to strengthen bilateral trade and investment, the initiative was launched in 2019 and supported by the Better Utilization of Investments Leading to Development (BUILD) Act. Signed by former President Trump in 2018, the BUILD Act consolidated the Overseas Private Investment…
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A total of 120,000 families in Uganda whose livelihoods have been negatively affected by Coronavirus Disease (COVID-19) pandemic will benefit from US$10 million (UGX 36 billion) direct cash transfers. The programme, implemented by GiveDirectly, a nonprofit organization that lets donors send money to the world’s poorest backed by the Ministry of Local Government is funded by the U.S Agency for International Development – USAID. Michael Kayemba, the GiveDirectly Country Director says the innovative direct cash giveaway project targets vulnerable Ugandans across the six newly created cities of Mbale, Moroto, Lira, Gulu, Kabale and Mbarara over the next three to five…
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Members of Parliament on the Committee on Agriculture want the government to account for funds spent in the fight against locusts. Uganda has spent more than UGX267 billion in loans and donations to fight locusts that ravaged some parts of East and Central Africa and some areas in Uganda. Although the government said that the locusts that arrived in Uganda were not harmful and that a more destructive swarm of locusts are expected, it has continued borrowing money and receiving donations. On 30th June, the Ministry of Finance notified Parliament of an intention to borrow UGX14.8 billion to fight locusts,…
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By Patrick Kagenda Despite Ecobank failing to realize profits five years after its inception in Uganda, the bank is continuously rolling out new products to prove its resilience in hard times and to further make a statement that it is a continental bank and here for life. Hardly a week after opening its 13th branch in Uganda in Jinja town, 54 kilometers east of the Capital Kampala, the bank during the last week of January 2014, signed a seven year US$ 7 million (Ushs18billion) joint loan agreement to expand access to credit for the private health sector in Uganda. The line of credit will enable Ecobank offer credit…
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