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Innovation

How Fintech Is Closing Uganda’s Financial Inclusion Gap

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By Acom Mercy

For decades, access to formal financial services in Uganda was limited by geography, high banking costs, and rigid lending requirements. Millions of Ugandans, particularly those in rural communities, women, youth, and micro-enterprises relied on informal savings groups, cash transactions, and unregulated lenders to meet their financial needs.

Today, fintech is changing that narrative.

By leveraging mobile technology, digital payments, artificial intelligence, and alternative lending models, Uganda’s fintech ecosystem is expanding access to financial services faster than ever before. More importantly, fintech is making financial inclusion not just a policy aspiration, but a practical reality for millions of Ugandans.

Uganda’s Financial Inclusion Journey

Uganda has made remarkable progress in expanding financial access over the last decade. According to the FinScope Uganda 2023 Survey, overall financial inclusion increased from 77% in 2018 to 81% in 2023, while formal financial inclusion grew even more significantly from 58% to 68% over the same period.

This progress has been largely driven by digital financial services. Mobile money alone is now used by 64% of Ugandan adults, making it the country’s most widely used formal financial service. SACCO usage has also grown considerably, rising from 5% in 2018 to 14% in 2023, demonstrating the increasing demand for accessible and community-based financial solutions.

The Government of Uganda’s National Financial Inclusion Strategy (2023–2028) aims to increase financial inclusion to at least 85% by 2028, reflecting the country’s commitment to ensuring that every Ugandan can access affordable, quality, and sustainable financial services.

Fintech: Bridging the Gap Left by Traditional Banking

Traditional banking institutions have historically struggled to serve many Ugandans due to high operational costs and limited branch networks, particularly in rural areas.

Fintech companies have addressed these challenges by delivering financial services directly through mobile phones, reducing transaction costs and eliminating the need for physical bank branches.

Whether it is making payments, accessing credit, saving, purchasing insurance, or managing investments, digital platforms now enable millions of Ugandans to participate in the formal financial system with greater convenience than ever before.

According to the Bank of Uganda, mobile money and Village Savings and Loan Associations (VSLAs) remain the biggest drivers of financial inclusion, with mobile money accounting for 66% of financial access among adults.

Ugandan Fintech Startups Driving Inclusion

Behind these statistics are innovative Ugandan startups developing practical solutions that address real-world financial challenges across sectors such as education, agriculture, savings, lending, and digital payments;

School pay– EdTech and digital education payments, Zimba Technologies – Banking software for credit unions and microfinances, Jeff Microfinance Uganda Limited – Digital lending and MSME finance

Nurturing Uganda’s Next Generation of Fintech Innovators

Innovation hubs play a critical role in transforming ideas into scalable businesses. The Makerere Innovation and Incubation Center supports emerging entrepreneurs through incubation, mentorship, business development support, strategic partnerships, and investor readiness programs.

Through its innovation support initiatives, MIIC is nurturing fintech startups developing solutions that advance financial inclusion and strengthen Uganda’s digital economy.

Among these innovators are:

Eazy Sacco is digitizing SACCO operations by enabling savings groups and underserved communities to manage savings, loans, and member transactions through digital platforms. The startup has onboarded over 20 savings groups and serves more than 1,000 active users, improving access to transparent and efficient cooperative finance.

Cyanase is a digital investment platform making investment opportunities more accessible by enabling individuals and groups to access treasury bills, government bonds, unit trusts, and other investment products through one platform. It also supports investment clubs and community savings groups with tools to manage contributions, lending, and group finances, reaching over 3,500 users to date.

Ensibuuko . Its cloud-based management platform enables cooperative societies to digitize savings, lending, accounting, and member management, allowing rural financial institutions to serve more customers efficiently while expanding access to affordable financial services. Ensibuuko has onboarded over 150 SACCOs (Savings and Credit Cooperative Organizations) and credit unions. They have supported a broader network of over 20,000 community finance institutions

Beyond Payments: Creating Economic Opportunities

Financial inclusion extends far beyond opening bank accounts.

Today’s fintech solutions are helping farmers access affordable credit, enabling women entrepreneurs to secure working capital, supporting micro and small enterprises with digital payment systems, and empowering young entrepreneurs to participate in the digital economy.

Digital lending, embedded finance, merchant payment solutions, and financial management platforms are increasingly giving individuals and businesses tools to save, invest, transact, and grow.

As Uganda’s digital economy expands, fintech is becoming a catalyst for entrepreneurship, job creation, and inclusive economic development.

Despite significant progress, financial inclusion remains uneven.

According to FinScope 2023, affordability, relevance, and limited awareness continue to be the biggest barriers preventing many Ugandans from using formal financial services. Rural populations, women, and low-income households still experience lower levels of formal financial inclusion compared to urban residents.

Trust also remains critical

As digital financial services become more widespread, fintech companies must invest in cybersecurity, consumer protection, data privacy, and regulatory compliance to maintain public confidence.

The government has responded by strengthening regulatory frameworks, including the National Payment Systems Act, Digital Lending Guidelines, and the implementation of the National Financial Inclusion Strategy, creating an enabling environment for responsible innovation.

Collaboration Will Define the Next Chapter

Uganda’s fintech success story demonstrates that financial inclusion cannot be achieved by one institution alone.

  • The government provides policy direction and regulation.
  • Financial institutions contribute infrastructure and customer trust.
  • Telecommunication companies enable digital connectivity.
  • Innovation hubs nurture entrepreneurs.
  • Fintech startups develop customer-centric solutions.
  • Development partners provide catalytic funding.

Together, these actors are building a more inclusive financial ecosystem capable of reaching millions who have historically been excluded from formal finance.

Looking Ahead

Fintech is no longer simply transforming how Ugandans make payments—it is redefining how they save, borrow, invest, insure, and build livelihoods.

With financial inclusion already reaching 81% and the national target set at 85% by 2028, Uganda has an opportunity to become one of Africa’s leading examples of digital financial transformation. Achieving that vision will depend on sustained investment, supportive regulation, continued innovation, and strong collaboration across the ecosystem.

As fintech startups continue developing solutions tailored to Uganda’s unique challenges, the future of financial inclusion will not be determined by the number of bank branches built, but by the digital innovations that bring affordable, trusted, and accessible financial services into the hands of every Ugandan.

Article originally posted on LinkedIn/Makerere Innovation and Incubation Center

Mak Editor

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Agriculture & Environment

Makerere Hosts Inaugural Falling Walls Lab Competition as Innovators Pitch Solutions to National Challenges

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Students and researchers from Makerere University and other institutions pitched 12 innovations addressing challenges in healthcare, clean energy, agriculture, waste management and community resilience during the inaugural Falling Walls Lab Kampala, held at the School of Public Health Auditorium, Makerere University.

The competition brought together emerging innovators to present solutions to practical challenges through a three minute pitch, followed by questions from a panel of judges.

Modelled on the Falling Walls format that originated in Berlin, the event required each participant to identify a “wall” a problem or barrier, and demonstrate how their innovation seeks to break it down.

Mudhasi wins with newborn jaundice screening device

Andrew Mudhasi of Makerere University emerged as the overall winner with a score of 90 per cent for a low cost medical device designed to improve newborn jaundice screening across different skin tones.

Overall competition winner Andrew Mudhasi (left) receives his first Place award certificate for his innovation

Mudhasi explained that the device uses optical sensor technology and a skin tone targeting algorithm to provide a rapid reading, with the aim of helping nurses and clinicians identify jaundice more efficiently.

During questions from the jury, Mudhasi said the device had not yet been tested on actual babies but had undergone laboratory testing using simulated skin tones.

He reported an accuracy rate of 94 per cent when the device was compared with laboratory spectrophotometers.

The innovation is intended initially for use in clinics and hospitals, with Mudhasi saying the team is also considering a version that could eventually allow mothers to screen babies at home.

Mudhasi’s innovation has previously received recognition at the African Business Concept Challenge and the iF Design Student Award, according to his presentation.

Rhonda’s innovation tackles diaper waste

Rhoda John of the University of Nairobi emerged in second place with 89.6 per cent for an innovation addressing the problem of used diaper waste.

Rhondah John pitches her innovation repurposing diaper waste into soil moisture retention

Under the theme “Breaking the wall of diaper waste and drug soils,” Rhonda explained that her team extracts sodium polyacrylate, the absorbent polymer found in diapers, and replaces the sodium with potassium.

The resulting potassium based superabsorbent material is designed to act as a “water battery” in soil by absorbing and retaining water for plants during dry periods.

John said testing showed a 99 per cent increase in germination and a 23 per cent increase in drought resistance.

The innovation also seeks to reduce the amount of used diapers ending up in landfills and the environmental effects associated with their decomposition.

During the question and answer session, John explained that her team was working with government environmental officials in Nairobi on a pilot collection system to address the challenge of gathering used diapers at scale.

Mahera takes third place with herbal peptic ulcer treatment

Stuart Mahera of Makerere University finished third with 86.2 per cent for a herbal formulation targeting peptic ulcers.

Stuart Mayira (left) receives his 3rd Place award certicate at the school of Public Health Auditorium.

Presenting under the theme “Breaking the wall of Nature and Modern Medicine,” Mahera argued that conventional treatment for peptic ulcers can involve multiple medicines and may be associated with side effects and antimicrobial resistance.

His proposed formulation, MARAC capsules, is intended as a monotherapy, combining properties required for peptic-ulcer treatment in a single capsule.

Mahera said his team had carried out quality control work, including characterisation and dose quantification, and had conducted preclinical trials on laboratory mice.

He also told the jury that an application had been submitted to the National Drug Authority as the team awaits the next stage of the regulatory process.

According to Mahera, the proposed seven day treatment would cost about Shs21,000, compared with the existing 14 day treatment approach.

Innovators present solutions to practical challenges

The remaining presentations covered a wide range of challenges.

Esther Nakungu of Utamu University presented Agri-Track, a digital record keeping solution intended to improve visibility, accountability and management of farm operations and financial information.

Dr. Jimmy Chachiga, a Makerere University participant, presented a solar photovoltaic cooker with a heat storage system designed to provide a cleaner and more reliable cooking option during both sunny and non sunny periods.

His presentation focused on reducing dependence on biomass fuels and addressing the challenges associated with intermittent solar energy.

Abdul Noor Luttamaguzi, a PhD student and senior government fisheries officer, presented a mobile application aimed at helping fish farmers and extension officers report, track and manage disease outbreaks.

Henry Duke Tamale presented a herbal cream targeting antibiotic resistant biofilm infections associated with diabetic foot ulcers.

Marvin Seruwu proposed adapting existing near infrared brain monitoring technology to help detect extra-axial brain bleeds in health facilities where access to CT and MRI equipment is limited.

His proposal seeks to repurpose existing technology towards a diagnostic need that could be particularly important in settings where advanced imaging facilities are not readily available.

Kennedy Kisame presented a poultry alert and diagnosis system combining satellite weather information with computer vision disease detection. The proposed system could be accessed through a smartphone application, SMS or USSD, making it potentially usable by farmers with limited internet access.

Frank Atwiine proposed a solar powered mobile diagnostic van designed to bring ultrasound and other diagnostic services closer to rural communities.

Johnson Makmot, a software and blockchain developer, presented a platform that combines GPS tracking and blockchain-based tokens to incentivise and verify plastic-waste collection in Kampala.

Dr. Nelson Ndugu, from a partner university, presented an artificial intelligence tool designed to translate agricultural research publications into local Ugandan languages and generate voice notes for radio-based extension delivery.

The final presentation came from Dr. Juliet Akola, a Ugandan post doctoral researcher at Mangosuthu University of Technology in South Africa.

Akola presented a community digital resilience initiative focused on mapping risks in Kampala’s informal settlements, including flooding, fire, poor sanitation, waste management and inadequate infrastructure.

Her proposal seeks to combine local community knowledge with geographical information systems and link identified risks to action plans involving municipalities and other stakeholders.

Nawangwe calls for more investment in innovation

Closing the event, Prof. Nawangwe congratulated all the participants and described their presentations as an important beginning for Makerere University, Uganda and the wider region.

Vice Chancellor, Prof. Banabas Nawangwe giving his remarks

Drawing on his experience attending the Falling Walls conference in Berlin, the Vice Chancellor said initiatives of this nature are important because innovation will play a major role in determining the future of countries.

He encouraged participants to make their pitches more precise by clearly identifying the problem they are addressing, explaining their proposed solution and demonstrating what they have already achieved.

Prof. Nawangwe also welcomed the participation of innovators from other universities and countries, noting that the Kampala event had attracted participants beyond Makerere.

He thanked the Africa Office of the Falling Walls Foundation for its role in bringing the initiative to Makerere and encouraged continued support for innovation.

The Vice Chancellor further linked innovation to Uganda’s growing youth population and the need to develop home-grown solutions to address challenges such as youth unemployment.

The inaugural Falling Walls Lab Kampala ultimately provided a platform for innovators to move ideas beyond the classroom and laboratory and demonstrate how research, technology and creativity can be applied to challenges affecting communities.

PositionWinnerInstitutionScore
1stAndrew MudhasiMakerere University90%
2ndRhoda JohnUniversity of Nairobi89.6%
3rdStuart MaheraMakerere University86.2%

Allan Ainematsiko

My name is Ainematsiko Allan. I am a student of Makerere University and currently in my final year. I am pursuing a Bachelors in Journalism and Communication.

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Engineering, Art & Tech

Makerere’s CEDAT Hosts Groundbreaking LIVWA Workshop on Advanced Climate Modelling for Lake Victoria Water Level Management

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By Harriet Musinguzi

As part of the Lake Victoria Improved Water Level Management through Advanced Modelling (LIVWA) Project, newly developed tools were unveiled during a dissemination workshop hosted by the College of Engineering, Design, Art and Technology (CEDAT) on August 26th, 2026. The project seeks to develop advanced hydrological and climate models to enhance water level management in Lake Victoria, East Africa’s largest freshwater resource.

The tools were designed to integrate remote sensing and reanalysis climate datasets with advanced hydrological modeling, enabling researchers and policymakers to better predict fluctuations in water levels in the lake. By combining historical data with AI and Machine Learning forecasting, the models aim to provide actionable insights for sustainable water resource management. Click here for details

Alex Isemaghendera

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Innovation

How to Manage a Side Hustle: The Story of Rebecca Talikaza

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Ms. Rebecca Talikaza with some of her products during the interview. How to Manage a Side Hustle: The Story of Rebecca Talikaza of Beckiz Bathing Sponge and Custodian, Makerere University, Kampala Uganda, East Africa.

By Carol Kasujja and Betty Kyakuwa

Running a side business alongside full-time employment has become an increasingly popular venture among staff. For many, it is a way to supplement income and build financial resilience. For Ms. Rebecca Talikaza, a 48-year-old custodian, it has become a pathway to transformation. Talikaza successfully balances her office responsibilities with her growing enterprise, Beckiz Bathing Sponge.

“For the years I have been running Beckiz Bathing Sponge, my side business has not affected my work. I have a support system at home, and I have learnt how to utilize my time well,” she explains.

Turning Necessity into Opportunity

Talikaza’s entrepreneurial journey began during the COVID-19 period, when schools reopened. While preparing to take her first-born son back to school, she realized he did not have a bathing sponge. A search in nearby supermarkets in Nakwero proved futile.

“When I failed to get a bathing sponge, I went back home and looked for some material I had bought earlier. I became creative and decided to knit one using skills I had acquired in primary school,” she recalls.

As she worked, a neighbor noticed her and expressed interest. “When I told her I was knitting a sponge, she asked me to make four for her,” Talikaza says. After completing the order, her neighbor paid her UGX 20,000.

That same day, a boda boda rider she had sent on an errand also requested one. “He told me instead of giving him money, I should give him a sponge. That is when it hit me—I could actually make money from this. Every home needs two or three sponges,” she says.

From Small Orders to Supermarket Shelves

Encouraged by the demand, Talikaza approached Babis Supermarket in Nakwero with her sample. She requested to supply her products after noticing the gap in the market. The manager agreed and asked her to produce two dozen sponges for distribution across five branches.

She also secured a similar opportunity with Shop Wise Supermarket in Manyangwa Village. “Both supermarkets accepted, but it took me three weeks to deliver. I had to sacrifice my sleep, sometimes working until 2:00 a.m. to meet the demand,” she says.

How to Manage a Side Hustle: The Story of Rebecca Talikaza of Beckiz Bathing Sponge and Custodian, Makerere University, Kampala Uganda, East Africa.
Ms. Rebecca Talikaza.

Her first delivery earned her UGX 54,000 per dozen, with each sponge retailing at UGX 5,000. Drawing on knowledge from her Postgraduate Diploma in Business Administration at Makerere University Business School, Talikaza realized the importance of branding and packaging. “I knew I had to register my business and package my products well because my target customers value quality,” she explains.

Improved packaging doubled the price of her sponges from UGX 5,000 to UGX 10,000. Since then, the business has steadily grown, enabling her to pay school fees and purchase land.

Challenges Along the Way

Despite her success, Talikaza faces challenges, particularly with delayed payments from supermarkets.

“Some supermarkets take long to pay, yet I need money to buy materials, so I end up using funds from other sources,” she says.

She also points to the difficulty small businesses face in meeting formal requirements. “Some supermarkets require invoices, which is challenging for small businesses like mine. Without them, we are taxed heavily,” she adds.

Advice on Managing a Side Hustle

Talikaza emphasizes discipline, sacrifice, and humility as key ingredients for success. “Never despise humble beginnings. Side businesses do not accommodate laziness. If it means working late, do so to ensure growth and profit,” she advises.

She also stresses the importance of fairness and teamwork, noting that she employs her children and a maid to help with production—and pays them weekly. To maintain professionalism, Talikaza draws a clear boundary between her job and her business.

“Your office work should not suffer because of your side hustle. I do not sell my products at the University. Those who need them can find them in supermarkets,” she says. She recommends careful time management, dedicating working hours to official duties and reserving evenings or weekends for business.

Efficiency, she adds, is critical. “I do not leave work to buy materials. I send a boda boda rider who delivers on time. He even helps monitor stock in supermarkets,” she explains. Above all, Talikaza encourages aspiring entrepreneurs to build businesses around passion and knowledge.

“Understand your business—its strengths, weaknesses, opportunities, and threats. Also know your target market to avoid being cheated,” she says.

At a Glance

Born to Mr. Nathan Magoola and the late Gladys Magoola, Talikaza hails from Iganga District. She attended Iganga Municipal Council Primary School before joining St. Peter’s Secondary School, Naalya, for both O-Level and A-Level.

She later earned a Bachelor’s degree in Social Sciences from Makerere University, followed by a Master’s degree in Gender and Women Studies and a Postgraduate Diploma in Business Administration.

The 10th born in a family of 14, Talikaza is a mother of six children.

Carol Kasujja
Carol Kasujja Adii

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