Inside Uganda’s emerging fintech ecosystem
As Uganda’s economy grows by leaps and bounds, it has also seen the emergence of a vibrant industry driving growth.
As Uganda’s economy grows by leaps and bounds, it has also seen the emergence of a vibrant industry driving growth.
From textiles to oil exploration, finance to fashion, there are already enough reasons to believe that the Ugandan fintech industry is growing leaps and bounds.
The growth has been helped by the fact that the country’s current population of 42 million is among the fastest-growing major economies globally.
However, despite these promising growth rates, the progress has been halting.
There are only a few fintech start-ups and banks in Uganda, and the majority of the financial technology innovations still have to be launched in a country where they do not have a market for them.
For instance, there are only eight fintech start-ups on the Uganda Stock Exchange (USX) that are registered, while just a few dozen fintech banks are operational.
The challenge is not just in developing financial technology in the country, but also in establishing the infrastructure required to support it – such as the regulatory framework that will ensure the appropriate conditions for the growth of the industry.
“There are a few fintech companies that are already successful and have shown a positive impact on their local community and the people they serve. They have already demonstrated the value of the financial technology they are developing, and they are working hard to become certified and accredited,” says Guddu Muhoro, who is currently the country head of fintech for Nusyire, Uganda’s largest fintech startup.
Ugandan fintech is a relatively young industry, and there will be challenges to overcome – one example being regulatory issues. “Financial technology can be complex, and there are specific regulatory requirements that we need to tackle first, and only then can we establish infrastructure for the industry to thrive,” says Muhoro.
“But there are already a
