In today’s conversation, we look at the recent but worrying trend that is starving the private sector of critical credit as commercial banks are increasingly preferring to lend to Government of Uganda through buying of Local and lucrative Treasury Bonds. From the 2022 Bank of Uganda statistics, The Government securities grew by 141% from 2017 to 2022 yet total loans grew by just 53% in the same period even when Deposits (The biggest source of Banks’ funding) grew by 73% in the similar period, majority of it was channeled to Government Securities. Below are the graphical representation of the Bank’s Risk averseness in the last 6 years under review. Deposits Growth vs Loans to customers growth. Statistics from Bank of Uganda Happy Investing everyone. Alex Kakande This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit kakandealex.substack.com