A Role for Finance MinistriesDate: 20-Oct-2015
This paper investigates various roles that finance ministries can assume to promote those policies, regulations and standards which help to create a sustainable financial system. Finance ministries typically interact with the financial sector in many ways, from regulator and supervisory mandate setters to tax authority and sovereign debt issuers. All of these points of leverage
Uganda's financial system is bank dominted and at an early stage of development. The focus of public interventions has been mainly focused on targetting investment for agricultural development, and financial inclusion. To overcome the limited willingness of commercial banks to provide banks long-term finance to the agriculture sector and the high cost of commercial credit, Uganda’s government established an Agricultural Credit Facility (ACF) in 2009 in partnership with private commercial banks to support a full value chain in agriculture from inputs to points of sale. Uganda has undertaken financial innovation through Mobile Money payments introduced and regulated by Bank of Uganda. Mobile Money has facilitated trade between the rural and urban areas thus reducing the cost of doing business.