What awaits Uganda’s new pick Micheal Atingi-Ego at the Central Bank?

Uganda's President Yoweri Museveni has appointed Micheal Atingi-Ego as the new Governor of the Bank of Uganda, succeeding the late Emmanuel Tumusiime-Mutebile after a three-year wait. Atingi-Ego, who previously served as Deputy Governor from 2023, will be stepping into his new role after being vetted by Parliament. With a myriad of economic challenges on the horizon, CNBC Africa sought insights from Wilson Manishimwe, Policy Analyst at Corporate Image Limited, to delve into what awaits the new Governor. The central focus for Atingi-Ego in his first 100 days will be balancing low inflation rates while ensuring continued economic growth. The Bank of Uganda's medium-to-short-term target for inflation stands at 5% and below, currently at 3.9%. A delicate equilibrium must be maintained to safeguard against inflation while fostering economic expansion. Additionally, there is a pressing need to stabilize foreign reserves, which have been dwindling. Atingi-Ego will need to explore strategies to prevent the depreciation of foreign reserves, crucial for ensuring the stability of Uganda's foreign exchange market. Amidst the economic landscape lies the cybersecurity challenge, with the Uganda Central Bank previously falling victim to a breach by offshore hackers resulting in a $16 million loss. Manishimwe clarified that the cyber incident originated from the Ministry of Finance's trading department, absolving the Bank of Uganda of direct hacking. However, Atingi-Ego's mandate will entail fortifying cybersecurity measures to prevent future breaches. Tackling Uganda's burgeoning public debt and combatting corruption are paramount tasks that await the new Governor. Atingi-Ego will play a pivotal role in advising the government on prudent public finance management, guiding investments with high returns, and ensuring timely project execution. The Auditor General's report revealed that Uganda is incurring substantial commitment fees annually, underscoring the urgency for enhanced financial oversight. A sound financial sector is imperative for economic stability, necessitating Atingi-Ego to address systemic vulnerabilities. Moreover, the recent reduction in foreign aid by U.S. President Donald Trump poses further challenges for Uganda's fiscal outlook. With diminished donor funding straining the government's service delivery capacity, Atingi-Ego faces the task of navigating a constrained fiscal space while safeguarding critical services. The economic uncertainties stemming from global events heighten the complexity of Atingi-Ego's tenure as the new Governor of the Bank of Uganda.