Ugandan consumers could get enticed to spend big as inflation rates fall and prices of commodities head south. Latest data from the Bank of Uganda (BoU) shows inflation levels averaged 3.2 percent in the financial year 2023/24 while annual headline inflation clocked 3.9 percent at the end of June 2024. Annual headline inflation stood at […]

The East African Development Bank (EADB) has written off loans amounting to $13.03 million, highlighting the economic constraints facing its member countries after Uganda defaulted on a $1.02 million loan last year. The lender disclosed in its audited financial statements that during the year (2023) it “de-recognised” the loans out of which assets available for sale amounting to $3.4 million were booked. This is a significant jump compared with $140,000 […]

Uganda’s central bank on Tuesday suspended the operations, Mercantile Credit Bank Limited (MCBL), one of the country’s biggest microfinance institutions, saying the bank was undercapitalised, posing a risk to customer deposits. The bank is one of five licensed microfinance credit institutions supervised by the central Bank of Uganda. The Bank of Uganda took action because […]

Stiff monetary policy moves, stringent financial compliance ratios, and low customer deposit growth have pushed Ugandan lenders into choosing fixed deposits. This development promises higher returns for local fund managers and higher customer borrowing costs. The Central Bank Rate (CBR) was raised to 10 percent in February, amid sharp depreciation of the shilling against the […]

Economic uncertainty, rising credit default risks, emerging liquidity and funding challenges amidst low deposit growth largely shaped Uganda’s banking industry performance during the first three months of 2024 as lenders confront a high interest rate environment. A combination of weak government spending, low consumer spending and budget cuts reported within local firms have affected economic […]