Uganda, March 23 -- Bank deposits are at their lowest point in two years on a monthly basis, and that is the money that banks depend on hand to lend out. In fact, it is the cornerstone of their business model.

In addition, data from the central bank shows that people's borrowing is also at its lowest point in seven years.

What numbers are we talking about here?

According to recent data, the total value of deposits held by Ugandan banks decreased from Shs3.2 trillion to Shs2.65 trillion by January 2024, compared to the prior 12 months period. Bank deposits dropped by Shs300 billion in a single month, from December 2023 to January 2024.

Per Mr Corti Paul Lakuma, a senior research fellow and head of the macroeconomics department at the E...