Micheal Mugabi, Managing Director of Housing Finance Bank, has been elected as the Vice Chairperson of the Uganda Bankers Association (UBA) during the Annual General Meeting held on 17th May 2024.
Mr. Mugabi will serve alongside Julius Kakeeto, Managing Director at PostBank, who will be the Chairperson. Other key members include Edgar Byamah, CEO at KCB Bank (Treasurer), Mumba Kalifungwa, CEO at ABSA (Auditor), and committee members Sanjay Rughani, CEO at Standard Chartered Bank, Patricia Ojangole, CEO at Uganda Development Bank, and Shafi Nambobi, CEO at UGAFODE.
The new UBA leadership team, succeeding the team led by Sarah Arapta, CEO at Citibank Uganda, takes charge during a period of notable growth in the banking industry. In 2023, total assets rose by 8% to Ushs 49.5 trillion, customer deposits grew by 7.8% to Ushs 33.96 trillion, agent banking points increased to 33,437, ATMs to 984, and bank branches to 856 nationwide.
The gross loan portfolio of the industry increased by 7.6% to Ushs 21.1 trillion. Key sectors included household and personal loans (Ushs 4.85 trillion), real estate (Ushs 4.31 trillion), trade (Ushs 3.72 trillion), manufacturing (Ushs 2.89 trillion), and agriculture (Ushs 2.53 trillion).
“I am deeply honored to be elected as the Vice Chairperson of the Uganda Bankers Association. This is a pivotal time for our industry, marked by significant growth and opportunities. Our collective efforts will be focused on fostering innovation, enhancing security, and driving financial inclusion. Together with my esteemed colleagues, I am committed to addressing the challenges ahead and building on the solid foundation laid by the previous leadership. I look forward to working closely with all members of the UBA to ensure the continued progress and resilience of our banking sector,” said Micheal Mugabi.
In her farewell address, Sarah Arapta, outgoing UBA Chairperson and CEO of Citibank Uganda, highlighted the elimination of early loan repayment fees as a significant achievement, facilitating more flexible loan options for customers.
“The decision to halt the early repayment fees was aimed at facilitating the loan market with flexible options and alternatives in constraining economic circumstances and by extension the growth of private sector credit,” she commented.
Ms. Arapta also emphasized the importance of continuing the UBA Women Economic Empowerment Programme, which supports female staff and entrepreneurs.
However, amid growth across the industry, key challenges remain on the horizon for the new leadership team led by Mr. Kakeeto and Mr. Mugabi such as rising fraud instances, which have driven ICT spending from Ushs 392 billion in 2022.
