UGANDA Trends and Developments Contributed by: William Kasozi and Brian Banana Baine, AF Mpanga
AF Mpanga 4th Floor DFCU Towers Plot 26 Kyadondo Road Nakasero P.O. Box 1520 Kampala Uganda Tel: +256 414 254540 Email: info@afmpanga.com Web: www.afmpanga.com
Corporate Governance Regulations Corporate governance remains a cornerstone of the Bank of Uganda’s five-year strategic plan for 2022–2027. As part of its efforts to embed a culture of robust corporate governance within financial institutions and other key players in the financial sector, the Bank of Uganda has introduced the Financial Institutions (Corporate Governance) Regulations 2024, which replace and revoke the Financial Institutions (Corporate Governance) Regulations of 2005. Additionally, the Bank has issued the Microfinance Deposit- Taking Institutions (Corporate Governance) Reg - ulations 2024 to extend governance oversight to microfinance institutions. The impetus for these regulatory changes stems from the recognition of the crucial role financial institutions play in the Ugandan economy. Given their position of trust, it is imperative that these institutions maintain strong corporate govern - ance frameworks. Weak corporate governance has been identified as a major contributing factor to corporate failures within Uganda. The new regulations introduce several key aspects of corporate governance. These include developing a comprehensive board charter, and
Over the years, Uganda’s banking and finance industry has experienced gradual evolution despite legal challenges and predictable mar - ket dynamics. This growth has been marked by the emergence of new and larger financial play - ers, enhanced financial products and systems, and the introduction of improved regulations and guidelines. The driving forces behind this steady progress have been advancements in technol - ogy and the influence of globalisation, which mirror trends observed across other developing nations. The banking sector in Uganda has been at the forefront of digital transformation, offering reli - able and innovative digital financial products. Additionally, evolving stakeholder needs have motivated the industry to pursue exponential growth to keep pace with customer demands. These trends are reflective of Uganda’s broader economic expansion. In 2024, the banking industry has continued along a similar growth trajectory to that observed in 2023, with comparable development trends emerging. As we look ahead, this article high - lights key regulatory developments in Uganda’s banking industry that warrant attention.
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