The Highflyer Report: What are some of the key market indicators journalists should focus on when reporting on Uganda’s financial markets?
Catherine Kijjagulwe: Our economy runs on financial matrices, so it’s critical that journalists get the facts right. Some of the key indicators include exchange rates—especially the dollar-shilling rate for importers and exporters—interest rates, inflation, oil prices, and GDP growth. These factors directly affect how businesses operate, borrow, and plan. If journalists can communicate these clearly, even in local languages, it helps the public and businesses make better day-to-day decisions.
The Highflyer Report: How is Absa Bank Uganda positioning itself to support investors and corporate clients during economic uncertainties?
Catherine Kijjagulwe: We are working to provide solutions that help clients manage risks, whether from exchange rates or interest rate fluctuations. By keeping our customers informed about market trends, we can tailor products to their needs. We are also focusing on key government priority sectors—agriculture, tourism, minerals, and technology—to ensure we have the right financial products and risk management tools for businesses in those areas.
The Highflyer Report: What can be done to lower Uganda’s interest rates?
Catherine Kijjagulwe: Borrowing costs remain high due to factors like inflation and elevated yields from government borrowing in treasury bills and bonds. As government diversifies financing sources and more offshore investors enter the market—especially with oil exports—interest rates could ease. Government initiatives like low-interest “grow loans” and the Parish Development Model are also steps in the right direction, though rates still need to come down further.
The Highflyer Report: What is Absa’s outlook for Uganda’s oil and gas sector?
Catherine Kijjagulwe: We aim to develop more financial market products that allow clients to hedge not just exchange rates and interest rates, but also oil and other commodities. This will give businesses greater stability as they participate in the sector.
The Highflyer Report: You mentioned pensions and government securities. How can Uganda improve local investment in these areas?
Catherine Kijjagulwe: Currently, few local investors buy government securities, which affects market depth. The central bank, in collaboration with banks, is running nationwide workshops and exploring mobile platforms to increase participation. A broader pool of local investors could reduce reliance on banks and pension funds, potentially leading to better—or lower—interest rates for borrowers.