Uganda’s Digital Foreign money Plan, Boosting Commerce and Inclusion

David Mwanje

KAMPALA– The Bank of Uganda’s (BoU) Final Report of the Consultation on Central Bank Digital Currency (CBDC), brings hope to traders and everyday Ugandans. This report, based on feedback from 151 stakeholders in 2024, shows how a digital currency could make payments easier, cheaper, and more inclusive. It could help small businesses grow and bring more people into the financial system, especially in rural areas.

The report, discussed in a March 2025 workshop, found that 88.7% of people believe a CBDC would help Uganda’s economy. Most (78.8%) would rather use digital money than cash because it’s faster and safer. Traders like Joseph Mukasa, who sells electronics in Kampala, see big benefits. “Lower costs for sending money to suppliers would save me a lot,” he said. The report says 70.9% agree a CBDC would cut expenses tied to handling cash, like printing and transport.

Governor Michael Atingi-Ego, at the workshop, said, “We’re exploring a CBDC to make payments better and include more people, but we’ll move carefully.” The BoU plans a study and a test run to ensure it works well. This cautious approach aims to build trust, with 83.4% of respondents saying they’d trust a BoU-backed digital currency.

For Ugandans, especially those in remote areas, a CBDC could be a game-changer. With 50.5 million people already using mobile money, a digital currency could fit right in. The report notes 60.3% want Uganda to work with East African Community (EAC) countries to make cross-border trade smoother. This could help traders like Mukasa sell more to neighbors like Kenya or Tanzania.

The Ministry of Finance sees a CBDC as a way to grow the digital economy. As it can make transactions clearer and help fight corruption. The report supports this, with 62.9% saying a CBDC could track money better, reducing fraud and boosting taxes by including more businesses in the formal system.

But there are hurdles. Many areas lack steady internet or electricity, and 45% of respondents worry the infrastructure isn’t ready. Cybersecurity is another concern, with 87.4% fearing hacks. Rural residents like Mary Akello, a farmer in Lira, ask, “How will this work without good internet?” The BoU plans to tackle these issues with better systems and public education.

The report suggests starting with a retail CBDC for daily use, backed by 60.3% of respondents, and testing programmable features for things like government aid. This could help people like Akello get payments faster. By learning from other countries and working with EAC partners, Uganda aims to build a digital currency that benefits everyone.

For traders and citizens, a CBDC promises easier transactions, lower costs, and more access to financial services. If the BoU addresses the challenges, this could transform how Ugandans do business and manage money.