The newly appointed Governor of the Bank of Uganda (BoU), Michael Atingi-Ego, has outlined his strategic focus on strengthening cybersecurity to safeguard Uganda’s financial sector from growing cyber threats while his deputy, Prof. Augustus Nuwagaba, has also urged the government to reduce excessive borrowing to ensure economic stability.
Atingi-Ego is stepping into office at a critical time when digital banking and financial transactions are on the rise. While digital transformation has increased financial inclusion, it has also exposed Uganda’s banking system to cyberattacks, fraud, and data breaches.
The Governor emphasized that BoU will invest heavily in cybersecurity measures, including enhanced monitoring systems, stricter regulations for financial institutions, and collaboration with global cybersecurity experts to counter attack cyber threats.
“The integrity of Uganda’s financial system must be protected at all costs. We are seeing an increase in cyber risks, and our goal is to stay ahead by strengthening our digital security frameworks,” Atingi-Ego stated.
His remarks come at a time when Uganda has witnessed multiple cases of bank fraud, mobile money scams, and hacking attempts, affecting both financial institutions and individual customers.
Experts warn that without strong cybersecurity policies, Uganda’s digital economy could be at risk.
Deputy Pushes for Reduced Government Borrowing
On the other hand, Prof. Augustus Nuwagaba, the newly appointed Deputy Governor of BoU, has called on the Ugandan government to reduce its borrowing and prioritize fiscal discipline.
Uganda’s debt burden has been a contentious issue, with public debt reaching alarming levels in recent years.
Prof. Nuwagaba warns that continued heavy borrowing, especially from external lenders, could have severe economic consequences, including high debt servicing costs, inflation, and constrained government spending on critical sectors like health and education.
“We cannot keep borrowing at this rate and expect economic stability. The government must explore domestic revenue mobilization strategies and ensure that borrowed funds are invested in projects with clear economic returns,” he asserted.
Uganda’s public debt has surpassed UGX 86 trillion, with concerns that the debt-to-GDP ratio could become unsustainable if borrowing trends continue unchecked.
The call for debt reduction aligns with recommendations from economic analysts and global financial institutions, who have warned of potential sovereign debt distress if Uganda fails to balance its books.
The contrasting but complementary priorities set by Atingi-Ego and Prof. Nuwagaba reflect Uganda’s broader economic challenges navigating the digital revolution while maintaining macroeconomic stability.
While cybersecurity investments are essential to protect the financial sector from evolving threats, fiscal responsibility is equally crucial to prevent Uganda from plunging into an economic crisis.
The Bank of Uganda’s leadership is now under pressure to deliver on these priorities while maintaining a delicate balance between innovation and stability in the country’s financial sector.
