DTB Uganda Urges Deeper Financial Markets for Economic Growth

Diamond Trust Bank Uganda has called for deeper, more liquid and resilient financial markets to mobilise the capital required to support Uganda's Tenfold Economic Growth Agenda. The call was made at the ACI Dealers Meeting hosted by DTB Uganda at Four Points by Sheraton Kampala, where financial market dealers, bankers and other industry players gathered to discuss the role of financial markets in Uganda's economic transformation. Speaking at the meeting, DTB Uganda Head of Treasury Parminder Singh said Uganda's ambition to grow its economy to US$500 billion by 2040 will require more than GDP growth. It will also require significant investment, innovation, efficient allocation of resources and strong financial markets. "Financial markets are not simply a mechanism for trading currencies, government securities or other financial instruments. They are the infrastructure through which savings become investment, liquidity becomes capital and economic opportunities become reality," Singh said. Keep up with the latest headlines on WhatsApp | LinkedIn He said Uganda will need financial markets that are transparent, innovative and increasingly integrated with global markets if the country is to achieve its growth ambitions. Singh noted that Uganda's economy has grown significantly over the past five years, with nominal GDP increasing from about US$40 billion to approximately US$62 billion. However, he said maintaining the same growth trajectory would still leave the country well short of its US$500 billion target, underscoring the scale of investment and economic transformation required. "Achieving a US$500 billion economy is no mean achievement. We need strong leadership, ambitious development programmes and financial markets capable of supporting the scale of investment required," he said. Singh called for stronger collaboration among the regulator, banks, dealers, investors and the broader private sector, saying trust and cooperation will be essential to building a financial system capable of supporting long-term economic transformation. Bank of Uganda Deputy Governor Professor Augustus Nuwagaba, who was the chief guest, said financial markets will be critical to translating Uganda's Tenfold Growth ambition into investment, enterprise, productivity and employment. "The Tenfold Growth strategy requires us to convert savings into investment, investment into enterprise, enterprise into productivity, and productivity into employment. This is how growth can ultimately put more money in people's pockets," Nuwagaba said. Get the latest in African news delivered straight to your inbox By submitting above, you agree to our privacy policy . We need to confirm your email address. To complete the process, please follow the instructions in the email we just sent you. There was a problem processing your submission. Please try again later. Nuwagaba said financial markets must also support greater value addition in sectors such as agriculture and minerals, arguing that Uganda needs to capture a bigger share of the value generated from its natural and productive assets. He noted that while the global coffee value chain is estimated at about US$236 billion, Uganda captures only a small portion of that value. He said this highlights the need for greater investment in processing, storage, trade and value addition. Nuwagaba also called for greater innovation in financial products to widen the sources of capital available to the economy. These include diaspora, green and infrastructure bonds, as well as other instruments that can mobilise savings from a broader section of the population. He said the Bank of Uganda would continue strengthening the legal and regulatory framework while supporting responsible financial innovation and maintaining price stability and financial system soundness. Nuwagaba urged financial institutions to understand the sectors and customers that will drive Uganda's future economy and develop products and services that respond to