Uganda’s economy is bleeding billions in stalled financial activity, with an estimated Shs 7 trillion locked up in unresolved banking disputes, according to Michael Atingi-Ego, Governor of the Bank of Uganda.
He warned that the growing backlog of cases is quietly suffocating investment and slowing economic momentum.
Speaking at the 2nd Judicial Colloquium on Finance and Banking, Atingi-Ego revealed that at least 623 unresolved cases are tying up vast sums of money in prolonged legal battles, funds he described as “dead capital” that is no longer contributing to economic growth. “For the economy, this is dead capital,” he said, stressing that the impact goes far beyond the courtroom.
He noted that money trapped in disputes cannot be recycled into loans, business expansion, or productive investment, effectively stalling financial intermediation. “Every shilling locked in a disputed loan is a shilling that cannot be re invested into the productive sectors of our economy. Every delayed judgment acts like a hidden tax on investment and weakens the transmission of monetary policy,” he added.
The colloquium, held at Lake Victoria Serena, brought together judicial officers, financial sector players, and policymakers to explore ways of fixing bottlenecks in Uganda’s dispute resolution system.
Atingi-Ego pointed out that banking disputes are often complex and time sensitive, yet they drag on for years, draining resources from both lenders and borrowers.
He called for a shift towards Alternative Dispute Resolution (ADR) mechanisms, such as mediation, negotiation, and arbitration, as faster and more efficient ways to unlock tied up capital.
“Financial disputes do not have to end in prolonged court battles. ADR offers a practical path to resolve these cases without exhausting resources,” he said.
He urged the Judiciary to treat ADR not just as a legal option, but as an economic tool capable of restoring liquidity and boosting investor confidence. The Governor also congratulated Flavian Zeija on his appointment as Chief Justice, expressing optimism about reforms under his leadership.
The warning highlights growing pressure on Uganda’s legal and financial systems to address delays in commercial justice, with experts increasingly viewing faster dispute resolution as critical to unlocking capital and sustaining economic growth.
