Some Ugandan economists have attributed the prolonged delay in appointing the Governor of the Central Bank of Uganda (BOU) to disagreements between President Museveni, the appointing authority, and the International Monetary Fund (IMF) and the World Bank. Andrew Muhimbise, a retail investor, stated that the vacancy in the position of BOU Governor persists due to the failure of consensus between President Museveni and the international financial institutions on the suitable candidate for the role. He expressed these views during a national TV political talk show on Tuesday, April 2, 2024.
John Walugembe, the Executive Director of the Federation of Small and Medium Enterprises, also attributed the delay in the appointment to the influence of the IMF, emphasizing the necessity for the appointed candidate to possess competence, political acumen, and credibility in the eyes of the IMF, akin to the late Mutebire.
Walugembe further stressed the importance of the incoming governor diverging from the conventional IMF and World Bank perspectives and adopting a developmental approach that considers not only inflation control but also the impact of monetary policies on the business community.
Highlighting the repercussions of the absence of a BOU Governor, Dr. Fred Muhumuza noted that it tarnishes Uganda’s reputation internationally and raises questions about the country’s functionality. He emphasized the need to avoid such ambiguity in governance.
Despite the vacancy, Walugembe commended Deputy Governor Michael Atingi-Ego for effectively managing inflation, acknowledging his performance in fulfilling his duties, albeit acknowledging internal governance challenges.
In the context of the IMF’s organizational structure, the appointment of the BOU Governor is the prerogative of the member country and the appointee subsequently becomes a member of the board of governors, the IMF’s highest decision-making body.
