diagnostic to establish the suitability of uganda ’ s financial sector legal framework to branchless banking. the results of this study should result into roll out of branchless banking under a suitable regulatory framework and consequent reduction of cost of opening outlets in hard - to - bank areas. the bank has also licensed three mobile money network operators ( mnos ), mtn, airtel and utl in partnership with stanbic bank, standard chartered bank and dfcu bank respectively. by end march, the operators had 1, 968, 125 registered customers and in the period january to march 2011, the total number of transactions were 13, 220, 674 with a total value of shs. 551, 010 million. it is our belief that a combination of the above initiatives will open new opportunities for financial intermediation and inclusion in a safe and sound system. in conclusion, the quest for financial inclusion should be complemented by safety and soundness to ensure that gains made in inclusion are not eroded by loss of savings or loss of confidence in financial institutions. the bou will continue to support formalisation of innovative approaches through improvements in regulatory framework as well as working with other stakeholders. however, unlicensed institutions that take deposits from the general public under the guise of member - savings and those intermediating compulsory savings are doing so illegally and must stop. i also wish to state, as i conclude, that new technology especially in the area of electronic money transfer and agency banking are destined to drive most of the future efforts aimed at financial inclusion. a lot of care must therefore be taken to build sufficient risk - mitigation and regulatory mechanisms that ensure safety of savers ’ funds but at the same time promoting further advances to avoid stifling technological development. with these remarks i once again thank amfiu for the foresight which led to the establishment of the amfiu calendar at which very useful topical issues are discussed. it is my ardent hope that the conference will achieve its objectives as set out in the agenda. i thank you. bis central bankers ’ speeches

bank of uganda remarks by prof. emmanuel tumusiime - mutebile, governor, bank of uganda the annual primary dealer of the year award ceremony 03 april 2017 the chief executives and senior staff of banks present distinguished guests ladies and gentlemen good afternoon. it is my pleasure to welcome you to the 12th annual primary dealer award ceremony. the primary dealer system aims to promote participation in government securities markets, to foster the development of financial markets, to improve the secondary market trading system as well as to ensure efficiency in the operations related to the government securities market at the central bank. page 2 of 7 primary dealers have contributed to the growth of the government securities market by ensuring high demand during primary market auctions. in 2016, the ratio of primary dealer successful bids in the auctions relative to the rest of the market was 61 percent of all auction bids. the auction bid to cover ratio, which is the total size of bids relative to the amount tendered, for treasury bills and bonds in 2016 averaged 1. 21, indicating that demand for government securities is strong and sufficient to accommodate the needs of government for domestic finance. primary dealers have also enhanced liquidity in the secondary market. total turnover in the secondary market increased by 12. 5 percent to ugx 3. 6 trillion in 2016 from ugx 3. 2 trillion in 2015. page 3 of 7 however, there remain challenges in the distribution mechanism of government securities, and we would like to see more vibrancy in the secondary market. therefore, the bank of uganda ( bou ) has introduced some changes in the way the primary dealership system will operate. going forward, all commercial banks will have similar access to the central securities depository ( csd ). all the banks will be able to open csd accounts at the bou for their clients, issue and accept bid submission forms on their client ’ s behalf, and facilitate their clients ’ secondary market transactions. investors will also access their csd account statements through their respective commercial banks. page 4 of 7 our expectation is that we will have more participants in the primary market and a more liquid, efficient, competitive, and attractive secondary market for government securities. the bou will maintain a consultative approach with the market participants and other stakeholders so as to bring on board constructive initiatives that will further develop the financial markets in uganda. i applaud the contribution of the primary dealer banks towards the development of the government securities market, and by extension, the financial markets in uganda. before