Parliament has vetted Michael Atingi-Ego as the substantive Governor of the Bank of Uganda (BoU) and Professor Augustus Nuwagaba as Deputy Governor.
Their engagement with the Appointments Committee took the entire morning, during which they committed to addressing cybersecurity threats and warned the government against excessive borrowing.
Following his vetting, Atingi-Ego promised to build robust systems to prevent cybersecurity breaches at the central bank, which recently suffered a scandal involving the loss of Shs60 billion in October.
Having served as acting governor since the passing of Emmanuel Tumusiime-Mutebile, Atingi-Ego emphasized the need to address all cyber-related risks.
“There are challenges ahead, and a key one is cybersecurity. We must ensure our financial sector is cyber-proof. We shall work with all relevant stakeholders to enforce cybersecurity guidelines across the sector,” Atingi-Ego stated.
“We need to enhance our risk management frameworks, given that risks and vulnerabilities evolve daily. Our focus is to ensure that our systems remain protected.”
He also noted that the BoU will work to maintain economic stability amid global financial uncertainties.
“We must consider global economic trends and their impact on Uganda’s domestic economy. By being innovative, we can anticipate future challenges and implement appropriate policy responses to mitigate adverse effects.”
Warning Against Excessive Borrowing
For his part, Professor Nuwagaba, speaking for the first time as Deputy Governor, revealed that their engagement with parliament included discussions on government borrowing and its impact on the economy.
He underscored the need for fiscal discipline to safeguard domestic economic players.
“Parliament was concerned about macroeconomic stability and the soundness of the financial sector. We explained the fundamentals that underpin a thriving economy and addressed their concerns about debt and inflation,” Nuwagaba said.
He pointed out the challenges of low financial depth due to Uganda’s low-wage economy and poor saving culture. Lawmakers also inquired about the possibility of capping interest rates to make borrowing more affordable.
However, the governor highlighted that similar attempts in other countries, such as Kenya, had failed, ultimately hurting borrowers.
“We explained that an economy needs to be liberal to perform well, and only then will interest rates decline. Government borrowing, particularly domestic borrowing, competes with the private sector for funds. We agreed that the government should reduce its borrowing appetite to allow businesses to thrive,” Nuwagaba added.
The tenure of the newly appointed governor and deputy governor will officially commence once Parliament submits its report to the appointing authority.