Musasizi Urges Absa Bank to Lower Lending Rates to Support Uganda’s Tenfold Growth Agenda
KAMPALA — The Minister of Finance, Planning and Economic Development, Henry Musasizi, has called on Absa Bank Uganda to reduce lending interest rates and increase affordable financing to support Uganda’s ambitious Tenfold Growth Strategy.
The appeal was made on Wednesday during a meeting between the minister and the leadership of Absa Bank Uganda, where the two sides discussed opportunities for the financial institution to contribute to the country’s long-term economic transformation agenda.
The Absa delegation was led by the Chairman of the Board of Directors, Keith Kalyegira, and the Managing Director, David Wandera.
During the meeting, Musasizi commended Absa Bank for its contribution to Uganda’s economic development through financing businesses and supporting investment across various sectors.
He, however, stressed that lowering the cost of borrowing should become one of the bank’s key priorities if the country is to unlock faster economic growth and attract greater investment from both the public and private sectors.
“The reduction of interest rates should be part of your priorities to attract more business from government and also contribute to the growth of the economy,” Musasizi said.
He noted that Uganda requires affordable credit to accelerate investment in the government’s priority sectors under the Tenfold Growth Strategy.
According to the minister, access to cheaper financing is critical for expanding agro-industrialisation, promoting tourism development and supporting manufacturing, sectors that are expected to drive employment, exports and household incomes.
Musasizi also highlighted the importance of financing strategic infrastructure projects, including roads, railway development and industrial parks, saying these are key enablers for industrialisation and value addition.
“The country needs cheap money to support the anchor sectors, including agro-industrialisation and tourism, as well as the enablers such as roads, railways and industrial parks for manufacturing and agro-processing,” he said.
He urged Absa Bank to strengthen its partnership with government by designing financing solutions that make capital more accessible and affordable for both public institutions and private enterprises.
The discussions come as Uganda pursues its Tenfold Growth Strategy, an ambitious government plan aimed at expanding the country’s economy through increased investment, industrialisation, value addition, infrastructure development and private sector-led growth.
The strategy places significant emphasis on mobilising affordable financing to unlock productivity in key sectors and improve the country’s competitiveness.
The meeting underscored the central role financial institutions are expected to play in providing the capital needed to drive Uganda’s economic transformation and achieve sustainable long-term growth.
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