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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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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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Innovation

Call For Applications: Falling Walls Lab Kampala, Uganda

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Call For Applications: Falling Walls Lab Kampala, Uganda. Deadline 25th August 2026. Makerere University, East Africa.

Falling Walls Lab is coming to Kampala, Uganda.

Which wall will your research break? Pitch your innovative idea in just three minutes, showcasing a breakthrough that positively impacts science and society.
 

Where
Makerere University, Kampala, Uganda

When
14 September 2026

Local Organiser & Partners
Alliance for African Partnership Africa Office (AAP), Makerere University, Astria Learning, Makerere University Research and Innovation Fund (Mak-RIF); Makerere University Writing Center; Institute of Gender and Development Studies (IGDS); Makerere University Technology and Innovations Center (MUTIC)

Deadline
25 August 2026

Apply Now

Contact
aap@mak.ac.ug
rachealddungu@gmail.com

Mak Editor

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