Some Ugandan economists have blamed the International Monetary Fund (IMF) and the World Bank for the continued delay in appointing the Governor of the Central Bank of Uganda (BOU).

According to Andrew Muhimbise, a retail investor, the position of Governor of BOU has for so long stayed vacant because President Museveni, who is the appointing authority, has failed to agree with the IMF and World Bank on who to appoint.

“The central bank has continued its role as usual in the absence of a governor. I believe this can be attributed to the influence of the IMF and World Bank. It seems we lack a governor because the appointing authority and the IMF have failed to reach an agreement on who should be appointed,” Muhimbise said.

Muhimbise made the remarks while speaking on a national TV political talk show on Tuesday, April 2, 2024.

John Walugembe, the Executive Director of the Federation of Small and Medium Enterprises, said that Museveni has delayed appointing the Governor because of the influence of the IMF, explaining that it requires someone competent, understanding political realities, and respected by the IMF, just like the late Mutebire.

“I think the president has failed to appoint a governor who ticks the boxes: first, someone who is competent; second, someone who understands political realities; and third, someone who is respected by the IMF. I believe the late Mutebire met these criteria,” Walugembe said.

He, however, said that the new governor who will be appointed needs to depart from the IMF and World Bank mindset and adopt a more developmental outlook towards the role of a governor, stating that while controlling inflation, he should not just focus on the numbers but also consider the impact some policies might have on the business community.

While explaining what not having a governor of the BoU means for the country, Dr. Fred Muhumuza said that it paints a bad image for Uganda.

“It also brings about image issues. If we go two years without a governor, how are other countries looking at us? Not that we are not functioning, but people start to question, and we don’t want to be in a gray area,” Dr. Muhumuza said.

Walugembe applauded the Deputy Governor of BOU, Michael Atingi-Ego, for managing inflationary tendencies well. He said that he has performed well in fulfilling his mandate, but he still has internal challenges on the corporate governance side.

According to the IMF leadership structure, the governor is appointed by the member country and sits on the board of governors, the highest decision-making body of the IMF.