Minister Musasizi Urges Absa Bank to Lower Lending Rates to Support Uganda’s Tenfold Growth Strategy

Hon Henry Musasizi / Courtesy Photo

KAMPALA — The Minister of Finance ,Hon Henry Musasizi, has challenged commercial banks to reduce lending rates and provide affordable financing to accelerate Uganda’s implementation of the Tenfold Growth Strategy.

Musasizi made the remarks during a meeting with the leadership of Absa Bank Uganda, where discussions centred on strengthening the bank’s role in supporting the country’s ambitious economic transformation agenda.

The Absa delegation was led by Board Chairman Keith Kalyegira and Managing Director David Wandera.

During the meeting, Musasizi commended Absa Bank Uganda for its contribution to Uganda’s economic growth but emphasized that the banking sector has an even greater role to play by making credit more affordable for businesses and government.

He said lower interest rates would stimulate investment, expand access to finance and attract more business from both the public and private sectors, ultimately contributing to faster economic growth.

“The country needs affordable capital to drive the productive sectors of the economy,” Musasizi said, noting that Uganda’s Tenfold Growth Strategy depends on increased investment in key sectors.

He identified agro-industrialisation and tourism as among the country’s anchor sectors requiring accessible financing, alongside critical enablers such as roads, the railway network and industrial parks that support manufacturing and agro-processing.

Musasizi urged Absa Bank Uganda to position itself as a strategic development partner by providing affordable, long-term capital that supports both public sector infrastructure projects and private sector investment.

He observed that access to cheaper financing would enable businesses to expand production, create jobs and add value to Uganda’s raw materials, thereby accelerating industrialisation and boosting exports.

The minister also reaffirmed the government’s commitment to working closely with the financial sector to mobilise investment needed to achieve the country’s long-term economic objectives.

Uganda’s Tenfold Growth Strategy aims to significantly expand the size of the economy through industrialisation, value addition, infrastructure development and export-led growth. The government has consistently encouraged financial institutions to align their lending policies with national development priorities by making productive investment more affordable.

The meeting with Absa Bank Uganda forms part of ongoing engagements between the government and key private sector players aimed at mobilising resources and strengthening partnerships to support Uganda’s economic transformation agenda.

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