Financial inclusion in Uganda progresses with a fresh investment by an agent banking company, shaping the financial sector.

In a significant development for Uganda's financial services sector, a Dutch impact investor, Goodwell Investments, has entered the landscape, investing in ABC, a Payment Systems Operator in Uganda. This investment, from Goodwell's €150 million uMunthu II Fund, is expected to play a crucial role in ABC's next phase of development, with a focus on enhancing basic financial services accessible through mobile phones, agents, and merchants.

The uMunthu II Fund targets early growth-stage companies in sectors such as financial services, food and agriculture, mobility, and logistics. Alongside ABC, another fintech company, NALA, has also received an International Money Transfer Operator license by the Bank of Uganda, further boosting the sector.

ABC, which operates under a license from the Bank of Uganda and has been in operation since 2017, serves 18 supervised financial institutions and five payment service providers. With this new funding, ABC aims to expand its client base, increase agent coverage, and roll out new services. ABC's network of over 15,000 bank agents across Uganda is set to grow, making financial services more accessible to underserved communities.

In addition to ABC and NALA, Flutterwave, a fintech company, has obtained a Payment Systems Operator license from the Bank of Uganda. With this license, Flutterwave can offer businesses in Uganda access to its payment solutions, including single and bulk payouts. The license also facilitates remittances from Ugandans in the diaspora to their families back home.

Moreover, eTranzact, a digital payment platform provider, has received an operational license as a Payment Systems Operator and Payment Service Provider (Class A) from the Bank of Uganda. This license enables eTranzact to offer digital payment platforms, mobile banking solutions, and electronic fund transfers in Uganda.

These developments indicate a rapidly evolving financial services sector in Uganda, with a strong focus on digital solutions and increased accessibility. As companies like ABC expand with new investments and international players enter the market, Uganda's financial inclusion landscape is poised for significant growth and innovation in the coming years.