Uganda's loan growth slows amid government borrowing
The Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, admits that while there are interventions to stimulate the demand for loans to the private sector, growth has been slowing at a rate of 7.7% in the fiscal quarter to January 2024, down from 8.4% in October 2023. He adds that this could be a result of a government crowding-out effect in light of sourcing financing for initiatives such as Emyooga and the Parish Development Model, funds that would otherwise be accessed throughout the banking ecosystem. Sectors that have been affected as a result include manufacturing, business services, and personal loans in the three months to October 2023.
