The government has taken a major step toward improving transparency and efficiency in public finance management with the signing of a renewed Service Level Agreement (SLA) between the Ministry of Finance, Planning and Economic Development (MoFPED) and the Bank of Uganda (BoU).
On Tuesday, Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury (PSST), signed the agreement with Michael Atingi Ego, the Governor of the Bank of Uganda, at the Ministry's headquarters in Kampala.
The SLA clearly spells out the roles and responsibilities of the two institutions in managing public funds, covering key areas such as government bank account management, receipt and disbursement of funds, clearing and settlement of local and international payments, handling of letters of credit for Ministries, Departments and Agencies (MDAs), provision of internet banking services, and settlement of government debt.
"This agreement comes at a time when the government is deepening its commitment to digital transformation, fiscal discipline, and enhanced accountability," Ggoobi said. "By aligning our financial operations with new realities, we aim to improve service delivery and strengthen public trust."
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For the first time since the COVID 19 pandemic which exposed weaknesses in emergency spending and rapid fiscal decision making MoFPED and BoU have updated their working framework to reflect new financial regulations, technological advances, and evolving public service needs.
BoU Governor Atingi Ego reaffirmed the central bank's commitment to Uganda's Public Financial Management reforms, saying, "We remain committed to ensuring that all government transactions meet the highest national and international standards of accountability and efficiency."
"The agreement stipulates the roles and responsibilities of each party in their operations. The areas covered in the agreement include: Bank Account management, receiving & disbursement of cash, clearing of local and foreign currency payments, management of letters of credit on behalf of Ministries, Departments & Agencies (MDAs), Internet banking & settlement of debt obligations among others." He added
The SLA represents more than just operational coordination. By clarifying institutional roles and adopting digital tools for monitoring and execution, the agreement closes gaps that often lead to delays, errors, or mismanagement of funds.
It also creates a clearer audit trail for how public money moves from its collection to its eventual use making it easier for oversight bodies and the public to hold government accountable.
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Ultimately, the renewed agreement is expected to reduce financial risks, improve the timeliness of public payments, and enhance transparency in how government funds are managed, supporting Uganda's broader goals of macroeconomic stability, efficient budget execution, and improved governance.
