Abstract:

This paper provides an empirical analysis of the role of public capital inflows in financial inclusion in Uganda. Financial inclusion was measured using three dimensions (access, usage and quality). Whereas public capital inflows where measured using three proxies of loans, grants and donations. The study anchored on financial intermediation theory. The target population was public organisations that have received public capital in Uganda. The study used data collected from Bank of Uganda and Ugandan investment Authority, Ministry of Finance for the period 2012-2016. A cross sectional descriptive designs were used while data was analyzed using descriptive statistics and multivariate Logistics regression analysis. It was found that public capital inflows did not play any role in promoting financial inclusion in Uganda. From the findings the study concluded that loans contributed 89% of public capital while grants contributed 11%. The study recommends that government particularly Bank of Uganda, Ministry of Finance and Uganda Investment Authority to formulate policies to ensure loans are reduced and parliament through its oversight role should ensure this happens. Further, grants and donations which are sustainable and stable sources of inflows should be deepened and widen by ensuring that adequate accountabilities for grants are done.

Keywords: Public Capital, Financial Inclusion, Inflows, Uganda.

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