Kampala, Uganda | THE INDEPENDENT | Credit in shillings to the private sector has grown significantly from about four percent to 18.5 percent in 2018, according to the Bank of Uganda.
The executive director research and policy Adam Mugume says people are borrowing more shilling-denominated loans than dollar-denominated ones because of exchange rate volatility.
According to Mugume the shilling-denominated loans when aggregated with dollar-denominated ones brings down the average of credit to the private sector to about 11 percent.
Private sector credit is a strong indicator of economic growth. The 11 or 18.5 percent growth is significant in the sense that it is far higher than the average of about four percent three years ago.