The Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, has assured Ugandans that the absence of a permanent Governor at the Central Bank for nearly three years has not hindered its operations. He emphasized that the Bank continues to function effectively due to its robust governance structures.
Atingi-Ego stated, “I think the Bank has been delivering. Is there anything to suggest that in the absence of the Governor, the Bank hasn’t been performing? We have a Board, senior management, and very capable staff.” He further explained that the policies and guidelines in place, along with a strong governance framework, enable the Bank to fulfill its duties. The Board provides oversight, and the staff is hardworking and dedicated.
These remarks were made in response to questions from MPs Allan Mayanja and Medard Sseggona about how the lack of a Governor has affected the Central Bank’s operations. Mayanja specifically asked, “We are coming to three years without a substantive Governor. How has this affected you and your experience?”
Atingi-Ego appeared before the House on Friday to address these concerns. According to the Bank of Uganda Act, the Governor and Deputy Governor are appointed by the President of Uganda with the Cabinet’s consent. Uganda has been without a permanent Governor since Emmanuel Tumusiime-Mutebile passed away on January 23, 2022, after serving for 20 years. Despite this, President Museveni has not yet named a successor.
Charity Mugumya, the Bank’s Director of Communications, referred questions about the appointment delay to the State House press secretary, who was unavailable for comment. However, Patrick Ocailap, the Deputy Secretary to the Treasury, stated that the absence of a Governor has not negatively impacted Uganda’s economy. He noted, “If it ain’t broke, don’t fix it.”
Ocailap questioned, “What has gone wrong for us to be worried about?” He mentioned that the Bank has managed imported inflation well and navigated the effects of the COVID-19 pandemic effectively. There is no reason to panic, and a decision will be made in due time.
Fred Muhumuza from Makerere University’s School of Economics agreed, saying that the Central Bank has maintained price stability and financial sector stability despite the challenges. He believes that the Bank has fulfilled its mandate without a permanent Governor. Muhumuza stated, “The top office is functioning with the Deputy Governor, who is part of the Governor’s office. The only issue is whether Uganda can find a Governor.”
Stephen Kaboyo, Managing Director of Alpha Capital Partners, highlighted the strong governance structure of the Bank of Uganda. He explained that the Governor and Deputy Governor are accountable to the Board of Directors, appointed by the President. The executive office, along with various departments, handles the Bank’s day-to-day management, research, and operations, ensuring policy formulation and mandate fulfillment.
Kaboyo noted that while it might seem unusual for a Central Bank to operate without a permanent Governor for so long, there is no major confidence challenge from a technical standpoint. He believes that the appointing authority is considering various factors and that there is no immediate risk to the Bank’s role.
Critics argue that the prolonged delay in appointing a new Governor reflects broader issues in Uganda, where technocratic concerns often clash with political loyalty to President Museveni.
