BoU Bets on SupTech to Restore Confidence After Cyber Breaches and Scandals
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The Bank of Uganda (BoU) has taken a major step in modernizing financial oversight with the launching of the E-Supervision (SupTech) Project. The initiative comes after a series of high-profile scandals and cyber breaches that exposed vulnerabilities in the Ugandan banking sector and weakened public trust in the financial system.
The launch, held at the Golden Tulip Hotel in Kampala, gathered key stakeholders: commercial bank executives, microfinance institutions, fintech startups, regulators, and international development partners.
The E-Supervision (SupTech) Project is designed to shift BoU from reactive, paper-based supervision to a proactive, data-driven model capable of detecting risks in real time.
Why Uganda Needs SupTech Now
Uganda’s financial sector has grown rapidly over the last decade, largely due to mobile money platforms such as MTN MoMo and Airtel Money. By 2024, mobile money transactions were worth over UGX 114 trillion, and financial inclusion surpassed 65% of adults.
Alongside growth, fintech startups, blockchain pilots, and cross-border digital payments have created both opportunity and risk.
The traditional oversight model, based on delayed reports and manual inspections, can no longer keep up with the speed of digital finance. Cyber threats, fraud, and insider collusion have become more common, undermining confidence. The SupTech Project was created to close these gaps, forming part of BoU’s 2022–2027 Strategic Plan.
Globally, central banks in the UK, Singapore, and Kenya already use SupTech for stress testing, fraud detection, and regulatory compliance. Uganda’s adoption of the model brings it in line with international practice and the country’s National Development Plan III, which emphasizes inclusive finance and digital transformation.
The Role of the SupTech Project
At its core, the E-Supervision (SupTech) Project uses advanced technologies to strengthen oversight. Its role in the Ugandan financial ecosystem includes:
- Data Standardization and Real-Time Reporting – Supervised financial institutions (SFIs) will feed data directly into BoU systems, eliminating delays and reducing human error.
- Advanced Analytics and AI/ML – Artificial intelligence and machine learning will analyze massive datasets to detect anomalies such as fraud, money laundering, or system weaknesses. Natural language processing will help assess contracts, complaints, and unstructured records.
- Predictive Oversight – The system will anticipate risks before they spiral, enabling early interventions.
- Automation and Cybersecurity – Routine compliance checks will be automated, and intrusion detection systems will help guard against cyber threats.
BoU describes the platform as a “digital brain for supervision,” capable of providing real-time insights rather than retrospective reports.
Scandals and Cyberattacks That Shook Confidence
The SupTech Project is launching against a backdrop of major security breaches. The most serious occurred in November 2024, when a hacker group calling itself Waste infiltrated BoU’s IT infrastructure and siphoned UGX 62 billion (around US$16.8 million) to foreign accounts.
Investigations revealed insider involvement. By February 2025, Ugandan authorities detained nine Ministry of Finance officials suspected of collusion in the heist. The breach highlighted long-standing weaknesses in cybersecurity, raising comparisons to the banking collapses of 2016 that also dented public confidence.
Other incidents include repeated phishing scams targeting commercial banks such as Stanbic and Equity, SIM swap fraud affecting Airtel Money users, and insider threats leaking customer data. Fraud alerts across the sector rose by 50% in 2025 alone.
To address these risks, BoU issued the February 2025 Cyber Risk Management Guidelines, which require financial institutions to adopt AI-driven monitoring, strengthen controls, and submit timely cyber incident reports.
Cybersecurity and the Regional Context
Uganda is not alone in facing these challenges. According to INTERPOL’s 2025 Cyberthreat Assessment, African countries lost over US$3 billion to cybercrime between 2019 and 2025, with Uganda’s finance and telecom industries among the hardest hit.
The cybersecurity market in Uganda is projected to reach US$46.66 million in revenue by 2025, driven by growing demand for fraud prevention and security solutions.
The phased rollout of the SupTech project will start with pilot tools for data validation and early warning systems. Over time, BoU plans to build the capacity of both its supervisors and the institutions it regulates.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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