This paper provides an empirical analysis of the role of private
capital inflows in financial inclusion in Uganda. Financial inclusion was measured
using three dimensions (access, usage and quality). Whereas private capital
inflows where measured using two proxies of foreign direct investment and
remittances. The study anchored on financial intermediation theory with its
three associated theories. The target population was private organisations that
have received private capital in Uganda. The study used data which were 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 private capital inflows did not play any
significant role in promoting financial inclusion in Uganda. The study
recommends that government particularly Bank of Uganda, Ministry of Finance and
Uganda Investment Authority to formulate policies which will attract more
investors to Uganda hence boosting FDI. For worker remittances to be deepen and
widened, the Ministry of Finance and Uganda Revenue Authority should remove
costs associated with receipt of remittances in-country. This way an all-inclusive
and stable financial sector in Uganda is ensured.
Keywords: Private Capital, Financial Inclusion,
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