FSD Uganda2023 Annual Report Letter from the Board Chair
Advancing financial inclusion: FSD Uganda’s strategy to push for gender inclusive digital financial services with a strong and growing digital economy
I am pleased to present to you the Financial Sector Deepening (FSD) Uganda’s 2023 annual report, which reflects on our progress, achievements, and the strategic direction we are charting for the future. This year’s report comes at a pivotal moment, as we assess not only the state of financial inclusion but also how global, regional, and domestic trends are shaping our approach to fostering inclusive economic growth.
Domestic economic landscape and financial inclusion
With Uganda’s GDP growth rebounding from 3.0 percent in FY2019/20 to 5.2 percent in FY2022/23 and projected to grow at a rate of 7.0 to 10 percent in the medium term, we are witnessing an encouraging economic recovery, with substantial gains in financial access. However, addressing financial inclusion requires more than just expanding access; it necessitates a comprehensive approach that tackles systemic barriers and deep-seated norms. For marginalised market segments, especially women, these barriers are often compounded by gender-specific constraints and societal norms that hinder their full participation in economic activities.
Focus on women and gender norms
At FSD Uganda, our strategic focus is unwavering in addressing these challenges. We are committed to understanding and dismantling the gender norms that impede the active participation of women in Uganda’s financial sector. Our initiatives, such as the Micro, and Small Enterprises Recovery Fund implemented in partnership with the Mastercard Foundation are designed not just to increase access but to ensure that financial services are tailored to meet the unique needs of women and other marginalised groups. For instance, entrepreneurs like Lillian Rwambuka, 35, who runs a small retail shop in Kampala, are seeing real improvements in their lives and business after having accessed credit without the traditional collateral requirements. This is thanks to the group lending model that some of the participating financial institutions accessing the Micro Small Enterprises Recovery Fund employ. Such successes have shown how deliberate interventions can significantly improve financial outcomes for women entrepreneurs.
Advancing market systems change
Our approach to financial inclusion is rooted in market systems change, with a focus on laying the foundations of a digital economy to drive the uptake of digital financial services among the marginalised population segments. We recognise that advancing this agenda requires innovative solutions and collaborative efforts which will demand continued partnerships and collective action across the public and private sectors.
Future outlook
Our progress to date would not have been possible without the invaluable support from our partners. The Bill & Melinda Gates Foundation, the European Union, and the Mastercard Foundation. Their support has enabled us to drive impactful change, however our work is far from complete. Looking ahead, we are committed to deepening our existing partnerships and forging new alliances to tackle emerging challenges, such as climate change. By expanding our network of partners, we aim to enhance our capacity to respond effectively to these evolving needs.
Amani M’Bale
Board Chair
