New budget presents us with challenges and opportunities, says Absa Uganda MD 

Kampala, Uganda | THE INDEPENDENT | The FY2023/24 budget presents both challenges and opportunities but through open and constructive engagements, Ugandans can navigate through these times effectively, according to Mumba Kalifungwa, the Managing Directro for Absa Bank Uganda.

Kalifungwa was speaking at a budget breakfast meeting held in Kampala on June 16 following the reading of Uganda’s next year’s budget on June 15 by Finance Minister, Matia Kasaija.

He said: “As Absa Uganda, we believe in fostering collaboration with the government, regulators, other financial institutions, and our customers, to mention but a few. Together, we can create an enabling environment for economic growth, innovation, and financial inclusion.”

Kalifungwa added that Absa Uganda remains committed to supporting the growth of the economy, empowering SMEs, embracing digital transformation, and promoting sustainable and responsible banking practices.

Kasaija’s Shs52.7tn budget comes at a time when the Auditor General’s Report for 2022 shows that public debt has grown by 12.5% or Shs11.5 trillion to Shs86.6 trillion as of June 2022 from Shs75.1 trillion in June 2021 and is projected to reach 53% of GDP by June 2023.

The current public debt remains a major challenge for the various stakeholders in the country but the government has put in plans to reduce public debt including the establishment of the Public Debt Management Framework, and prioritising investment in productive areas.

“The stability and resilience of the financial sector is paramount for sustainable economic growth. We appreciate the tireless efforts of the Central Bank towards ensuring the financial sector is solid and supporting initiatives to increase customer confidence in the sector,” Kalifungwa said.

In the FY 2023/24, the government plans to promote efforts for competitive local production of affordable goods and support increased access to affordable financing through initiatives such as the Agricultural Credit Facility and Small Business Recovery Fund, and Emyooga.

The new budget will run under the theme; Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation, and Market Access.