By Oyet Okwera & Cynthia Aber
Bank of Uganda Governor, Prof. Emmanuel Tumusiime Mutebile has urged commercial banks to increase business foot prints across the nation.
Mutebile believes that financial inclusion can be increased through bringing financial services closer to the people opposed to the city centre business transaction.
He observed that the ongoing growth of commercial banks is attributed to the bright future of banking prospects in Uganda.
“We expect real economic growth to edge up in the next fiscal year to 6.2 % from the projected 5.7 % in 2013/2014,” said Mutebile.
He explained that growth will be higher because of increased demand in the economy driven by a more expansionary fiscal stance and continued recovery of private sector spending.
Mutebile noted that faster economic growth will support the recovery of loan demand from the private sector which has been weak in the last 3 years.
Mutebile was speaking during the launch of a Standard Chartered bank branch at Acacia mall in Kisementi, Kampala.
He expects growth of bank lending to the private sector to accelerate to about 15% in the next fiscal policy compared to 12% in the current fiscal policy.
Government requires over sh1.4 trillion from the domestic market in the form of treasury bills and bonds to finance its budget in the next fiscal year, he said.
Mutebile optimistic about economic growth