Uganda is rapidly emerging as a key player in the fintech and financial services sector within Africa, buoyed by innovations in mobile money and digital banking. With Kampala as its capital and financial hub, the country is working through various economic challenges, including health crises as well as strict lockdowns.

Despite these hurdles, Uganda’s commitment to financial inclusion is evident in its robust mobile money ecosystem, diverse fintech solutions in savings, lending and remittances, and progressive regulatory frameworks aimed at fostering growth and innovation.

Kampala

Uganda Vision 2030

In recent years, Uganda has faced various challenges, from Ebola outbreaks to stringent Covid-19 lockdowns. Despite these difficulties, the country has witnessed significant growth in its financial services and fintech sectors, driven by both organic market dynamics as well as government support.

In the payments space, mobile money has emerged as the dominant ecosystem in Uganda, with a range of players including aggregators, telecoms, and banks offering mobile wallet solutions. These platforms facilitate a wide array of transactions, including utility payments, bank-to-consumer transfers, e-commerce transactions, and retail payments. Additionally, the country has seen the emergence of numerous mobile and digital wallet providers, further diversifying the payment landscape.

Fintechs in Uganda have also made significant strides in savings and lending, catering to niche markets such as asset lending, solar energy, agro-business, micro-loans, and savings. Leveraging their understanding of traditional Ugandan SACCOs and microfinance structures, these fintechs offer digital transformation solutions to enhance financial inclusion.

The e-commerce sector in Uganda has also experienced notable growth, particularly during the pandemic, with platforms like , , and expanding their presence. However, disparities in internet access remain, with higher smartphone usage observed in urban centres like Kampala compared to rural areas.

In the realm of remittances, mobile money platforms like , , and have played a crucial role in facilitating transactions for the unbanked population. These platforms have enhanced connectivity between financial institutions, businesses, and consumers through mobile and digital wallets, catering to the significant number of Ugandans working abroad who send money back home.

Regulatory frameworks in Uganda have evolved to accommodate the shifting landscape, with a greater emphasis on mobile money and open-ended financial regulations. This regulatory flexibility has supported innovation and growth in the fintech sector.

In addition to the mentioned fintechs, Uganda is home to other notable players such as (a neobank), (specialising in money remittances), and (offering asset finance solutions).

■             – Country’s central bank

■             – The country’s investment promotional agency

■             – The umbrella body for fintechs in Uganda

■             Financial Sector Deepening Uganda (FSDU) – Independent non-profit focusing on leveraging digital finance in Uganda

Sector breakdown

Timeline of key fintech highlights:

Uganda has the following key fintech milestones:

Key statistics of the country:

This is an excerpt from The Fintech Times: Middle East and Africa (MEA) 2024 Report: read online