“This study documents the recent trend of financial liberalization in Uganda and examines its impact on growth, investment and domestic savings. There are many facets in which financial liberalisation could contribute to growth. Some of these mechanisms include lowering of the cost of capital from improved sharing. Improved risk sharing may also lead to investments in more risky but high return generating projects. In terms of savings, financial liberalisation can affect both the allocation and the quantity of domestic savings. Also, expansion of the range of financial products or relaxation of liquidity constraints may change the amount of savings. The study has three goals. Firstly to document Uganda’s experience from financial sector liberalisation. Second to investigate whether financial liberalisation spurred economic growth, and investment. Thirdly to establish how financial liberalisation affected domestic savings in Uganda.”
