In general I think that these policies have served Uganda well, helping to promote the development of the banking sector and attract foreign investment. I do not think that we should reverse these policies, but some reforms are needed, for the reasons that I will explain. Uganda is now classified as a “frontier market”.
The term frontier market denotes a nascent emerging market, and is applied to low income countries which are experiencing rapid private sector led growth and whose financial markets are beginning to attract investment from foreign institutional investors. This is a positive development; it shows that we are making progress towards middle income and emerging market economy status. However, development involves risks.