Speaking at the 2nd ICT National Summit, Dr. Tumubweinee Twinemanzi, the Executive Director of National Payment Systems of the Bank of Uganda, delivered a compelling keynote that reaffirmed the Bank’s commitment to supporting Uganda’s transition into a digitally-driven economy.
“It’s an honor to address you today,” said Twinemanzi. “On behalf of the Bank of Uganda. We are grateful to the ICT Association of Uganda (ICTAU) for the role you have played in advancing the nation’s focus on digital innovation.”
Twinemanzi emphasized that Uganda is at a critical reflection point in its economic journey, striving to achieve a tenfold growth in GDP by 2040—a target he acknowledged as both ambitious and necessary. “This strategy can only be achieved if we harness digital applications and innovation,” he stated.
He noted that while the ICT sector currently contributes about 1.5% to GDP, projections show this could increase to 2.5% by 2029-30, assuming current growth trends continue. However, he cautioned that mere incremental growth is not enough: “We need a paradigm shift. The winners will be those who adapt early.”
Financial Sector’s Digital Evolution
The Bank of Uganda’s revised strategic plan (to 2027) highlights the growing priority placed on knowledge transformation through digital public infrastructure. This includes an already-established national e-payment strategy, launched in September of the previous year.
Dr. Tumubweinee Twinemanzi outlined the four pillars of this strategy:
- Infrastructure development.
- Modernizing regulatory frameworks.
- Fostering innovation and consumer protection.
- Promoting collaborative commitments.
But he made an important clarification: “When I say promoting, we are not going to fund it ourselves. Our role is to create a financial system that works smoothly and enables institutions to offer products and services that fund that infrastructure.”
Impressive Digital Footprint
Uganda’s progress in digital finance is evident. As of March 2024, mobile money transactions had reached UGX 304 trillion, while digital loan disbursements stood at UGX 2.9 trillion. “These are not small numbers,” Dr. Tumubweinee Twinemanzi noted. “We have developed financial inclusion frameworks that by March had already reached 67%.”
The Bank does not see itself merely as a regulator, but as a participant in Uganda’s digital future. This includes exploring frontier technologies such as Central Bank Digital Currencies (CBDCs). “We’ve engaged stakeholders, and 83.4% of government respondents indicated there’s a case for exploring a CBDC,” he shared. The consultations are now exploring whether Uganda should adopt a wholesale, retail, or cross-border approach.
Challenges: Fraud, IP, and the ‘Black Box’
Despite the progress, Dr. Tumubweinee Twinemanzi highlighted critical vulnerabilities. Among them: cybersecurity threats, dependence on foreign-owned intellectual property, and lack of understanding of emerging technologies.
“In the financial sector, we are now facing fraud conversations we’ve never had before,” he said. “We celebrate big technologies, but we don’t always understand them. One speaker mentioned AI. The downside of AI is the ‘black box’ problem. We don’t know how it makes its decisions. That’s a risk.”
He cautioned innovators and regulators alike to avoid blind enthusiasm: “Our objective functions must remain grounded in minimizing systemic risk, even as we innovate.”
Twinemanzi closed his remarks with a rallying cry: “Clean up. Green up. Link up. Scale up.” A mantra, he said, that reflects the collective effort needed to steer the country towards a resilient digital economy. “For the innovators in this room,” he said, “you must take a long-term view. Ask yourselves: to what extent are we building, aligning, and coordinating our innovations for this shared journey?”
He concluded by reaffirming the Bank’s commitment: “We remain unwavering in our duty to maintain macroeconomic stability, ensure financial sector resilience, and foster innovation. Uganda’s journey to a digital economy by 2030 is not just possible—it’s inevitable. And the Bank of Uganda will continue to be a steadfast partner in this transformation.”
The 2nd ICT National Summit brought together stakeholders from across the government, private sector, civil society, and the tech ecosystem. With such strong institutional backing, Uganda’s digital economy is on a promising path—if guided by strategic coordination, robust infrastructure, and a shared vision.
