Africa-Press – Uganda. The Bank of Uganda is intensifying oversight of digital financial services and investing in cybersecurity as digital transactions become central to the country’s financial system, Deputy Governor Augustus Nuwagaba has said.
Speaking on NBS Television’s Morning Breeze on Thursday, Nuwagaba said, “The digital movement is inevitable. The world is moving toward digital finance, and we must adapt.”
Uganda has experienced rapid growth in mobile money, agency banking, and electronic payments over the past decade. The central bank established the regulatory framework for mobile money in 2009 and has expanded supervision as transaction volumes increased.
Nuwagaba highlighted digital platforms such as the Real Time Gross Settlement (RTGS) system, which facilitates domestic and international transactions. “We have established digital platforms that are working very well,” he said.
The Bank of Uganda has also supported agency banking and Islamic banking to broaden access and foster innovation.
However, many Ugandans still prefer to convert digital funds into cash. “This money on your phone is still your money. Why do you want to cash it out?” Nuwagaba asked, noting that keeping funds digitally reduces transaction costs and improves efficiency.
Security remains a major concern. “The biggest threat to financial institutions now is cybersecurity,” he said. “Banks are no longer attacked physically — the threat is digital.”
Financial institutions must invest heavily in firewalls and other safeguards. “When you look at their accounts, one of the largest expenditures is cybersecurity,” he said. The Bank of Uganda regularly engages industry players to ensure proper protections are in place.
Nuwagaba noted that digital platforms are generally more secure than cash, as unauthorized access requires personal identification numbers (PINs). However, cyber threats continue to evolve and require constant vigilance.
The central bank is also monitoring global trends, including central bank digital currencies and cryptocurrencies, as part of its long-term digital strategy. “You cannot stand aside and say you will not participate in this movement,” he said.
The expansion of digital finance is part of BoU’s broader financial inclusion agenda, aimed at increasing participation in the formal financial system. Greater adoption of digital payments can deepen financial markets, enhance transparency, and reduce cash-handling costs.
“As Uganda’s economy grows and modernises, our responsibility is to ensure that as we adopt digital finance, the system remains safe, stable, and secure,” Nuwagaba said.
