New developments in the financial sector have forced a rethink of how the sector should be developed to ensure it helps build a thriving economy that works for every Ugandan, according to Moses Kagwa, the Director of Economic Affairs at the Ministry of Finance, Planning and Economic Development.
Kaggwa, who spoke during the conference on reshaping the tax system to support the financial sector development strategy, on behalf of the Permanent Secretary and Secretary to the Treasury, Ramathan Goobi, underlined the importance of the financial sector to any economy and hence its need to keep with the times.
“The financial sector fosters growth by mobilizing and pooling savings for the allocation of capital in productive investment. It ensures that resources go where they are needed and all of society is included. It is no surprise that countries with mature financial sectors enjoy stronger and more inclusive economic growth,â€ he said.
He observed the government came up with a strategy, the Financial Sector Development Strategy (FSDS) to ensure the financial sector plays its central role in the planned transformation of the economy.
The FSDS’s three strategic objectives are to ensure, financial services for all, financial services for markets, and financial services for growth.
Under the strategy, the government has set a target of having up to 80 percent of Ugandans formally financially included by increasing the range of financial products, expanding delivery channels, improving financial education, and strengthening low-tier financial institutions.