. central to this impressive trend has been high rates of private investment in labour intensive industries. the second lesson is the importance of the demographic transition in driving development. the structural advantage of the demographic dividend has contributed to more than 30 percent of china ’ s total economic growth. china cut its total fertility rate to slightly under 2 children per woman and, as a result, was able to reduce the age dependency ratio to only 36 per 100 workers. in contrast, uganda has a total fertility rate and age dependency ratio of 6. 1 and 104, respectively, among the highest levels in the world. therefore, a reduction in the fertility rate and the age dependency ratio would contribute to driving structural transformation and economic growth in any developing country. third lesson i would like to draw from china is the maintenance of a competitive real exchange rate that supported export led growth. this is in marked contrast to some economies in the sub saharan africa region where the exchange rates have often been overvalued, thereby reducing incentives in the export sector. an undervalued exchange rate that increases the size of the tradable sector would stimulate economic growth. this morning, the bank of uganda senior management had the opportunity of meeting the governor with his delegation. we shared the economic experiences of the two countries and a number of issues came out, which would be of great interest to the investor and banking community in uganda. i will share with you the following : 1. over the last 10 years, foreign exchange management in china has been transformed extensively leading to lifting restrictions on the use and international settlement of the renminbi and that the currency is now fully convertible ; 2. the peoples ’ bank of china has a number of swap arrangements with several central banks in advanced, emerging, and developing economies ; 3. china permits direct investment into the chinese bond and securities markets through an agent correspondent bank ; 4. china is open to correspondent relationships with financial institutions ; 5. a number of windows have been developed for medium to long term financing of trade and investments and that the governor will soon be signing a us $ 2 billion joint investment fund with the president of the african development bank. the opportunities for trade and financing are many and the ugandans can position themselves to take advantage of these opportunities. further, the peoples ’ bank of china and the bank of uganda agreed this morning on staff and information exchanges to pursue issues of common interest in central banking. we look forward to a continued collaboration and dialogue between the peoples ’ bank of china and the

bank of uganda remarks by louis kasekende ( phd. ) deputy governor, bank of uganda at the occasion of celebrating ten ( 10 ) years of kcb bank ( uganda ) limited ’ s banking operations in uganda november 03, 2017 your excellencies, the ambassadors and high commissioners, members of the diplomatic corps, kcb group chairman, mr. ngenny biwott, the kcb group ceo and md, mr. joshua oigara, executive director supervision, bank of uganda the board of directors of kcb bank ( uganda ) limited, the ceo, management and staff of kcb bank ( uganda ) limited, invited guests, ladies and gentlemen, i bring warm greetings from the governor, prof. emmanuel tumusiimemutebile, who is unable to join us this evening. none - the - less, i am greatly honoured this evening to preside over this function, at which kcb uganda is celebrating ten years of successful operations in uganda. let me start by congratulating the shareholders, the board of directors, management and staff of kcb for all their achievements over the last ten years. kcb uganda is a subsidiary of the kcb group which has assets of nearly us $ 6 billion and operates in seven different countries. i listened to the remarks by the leadership of the kcb group, and i would like to emphasize two issues. first ; is the fact that contrary to the narrative by some ugandan media commentators, the government of kenya is only a minority shareholder in the kcb group, holding about 18 percent of shares as at august 2016. second, is a lesson for our business community in uganda to strive to emulate our kenyan counterparts in terms of foresight and discipline in managing our businesses so that we too can have ugandan businesses successfully establishing base across the borders. mission : to foster price stability and a sound financial system macroeconomic stability vision : to be a centre of excellence in upholding my brief remarks will concentrate on examining developments in the financial sector in two parts. the first part will look at the last ten years of kcb bank uganda in our market ; while the second will examine the next decade and what i envisage to be the key challenges to banks especially with regard to the rapid developments in financial technology ( fintec ) as well as implications for regulation and supervision. kcb opened its doors to the ugandan public in november 2007. this was after the lifting of the moratorium on licensing of new