Uganda has made, and continues to make great strides in regulation. Perhaps most notably is the development of regulatory experiment (or sandboxes) – a cutting edge approach designed to allow fintechs to try new innovations without disrupting the existing financial ecosystem.
By Joseph Lutwama and Kim Kariuki
Technology advancements in the last two decades have resulted in a chain reaction of innovations in financial services never experienced in this generation. Whereas previously financial services would only be accessed in big, tall and intimidating bank branches, now a financial transaction can be completed in just under a minute without stepping into a bank branch or even talking to a banking relationship manager across the counter.
This report aims to give an overview of the Ugandan banking sector and the potential opportunities that exist to increase the banked population. The information generated by the FinScope Uganda survey, conducted in 2018, provides the basis for this report’s analysis.
Information presented in all tables and figures are obtained from analysis of FinScope 2018 dataset.
Efforts to increase formal financial inclusion in Uganda are faced with significant challenges which are both supply and demand side in nature.
Money management, planning and the safe building of assets are core components of a larger set of economic and social skills needed to achieve a sustainable livelihood. In recent years, there has been a growing recognition of the obstacles women and young adults face in developing these abilities. Financial service providers (FSPs), however, are still failing to meet the needs of these sections of society. In the process, they are missing out on the potential benefits of developing the female and young adult economy.
The findings of the FinScope survey conducted in 2018 show that formal insurance uptake in Uganda is at 1%. Current insurance penetration in Uganda is also estimated at 1%. The low level of formal insurance uptake is attributable to public mistrust, low public awareness and a narrow insurance product range – especially for low income earners.
Uptake of formal insurance was 6% in Kenya, 9% in Rwanda and 15% in Tanzania. This means that uptake of formal insurance in Uganda is the lowest in the region.
By Joel Muhumuza(FSDU) and Protazio Sande(IRA)
It’s midnight and Muzeeyi Bizibu and his wife are meant to be asleep because they have to wake up at 5am to go to work. However, Muzeeyi Bizibu’s chest is yet again bothering him. He can’t seem to breathe well and is having coughing fits. It might be pneumonia.
Presentation at the Innovation Forum and FSDU Insurance Challenge Fund Launch – Kampala, 10 December 2018.
By Former Communications Officer
Advances in Technology could be the solution to smallholder farmers’ access to financial services in Uganda. Take Enid Nimusiima, 42 years old, a member of Mushanga Savings and Credit Cooperative Societies (SACCOs) in Sheema District, in Uganda.
FinTech holds great potential for both financial inclusion and economic development in a wider sense. Digital financial solutions have been expanding access and reach to consumers, especially the unbanked and under-banked. They have been significantly lowering the costs of providing financial services, making it possible to serve the base of the pyramid in a more profitable way. Fintechs have also enabled new business models that offer expanded services to customers and continue to generate new revenue streams for financial service providers.
By Peter Kawumi (Former Manager Competitive Strategies)
Increased access to solar energy by rural households and small businesses will drive demand for formal credit in the developing world.
Off-grid solar energy solutions are taking off. For the over 1 billion people living without electricity, the ability to use technology to access cleaner energy over time can be life-transforming. In sub-Saharan Africa, most people lack access to electricity. This limits their opportunities to education, business growth and presents significant health risks. Grid electricity remains an expensive resource for many – especially the rural poor.
Ensuring Resilience in the Supply of Agricultural Finance amidst the COVID-19 Pandemic: Lessons from the Integrated Cooperative Model.
FI4R Diaries Round IV Insights: Gender
FI4R Diaries Round III Insights: Digitization of Saving Groups
Covid – 19 Market Diagnostics and Options for Long-Term Recovery (Supply – Side Report)
The Shared Agent Banking Platform is Increasing Financial Inclusion in Uganda
Highlights on Agent Banking Services in Western Uganda (Mbarara and Hoima Districts)
