Fintech Firms Discuss Achieving Progressive Regulatory Environment

Airtel Mobile Commerce Uganda Limited (AMCUL) in collaboration with other Fintech stakeholders held a dialogue on how to achieve a progressive regulatory environment that supports affordable digital financial inclusion in Uganda. The fintech sector is regulated by the Bank of Uganda (BoU) under the National Payments Systems Act (2020) which was enacted in 2020 and whose regulations came into force in June 2021.

According to the BoU records, as of September 30, 2022, 23 entities had been licensed under the NPS Act, 2020 with a recorded volume of Shs3 trillion in industry transactions. AMCUL, as a Payment System Operator and Payment Services Provider, was the first licensee to be granted licenses under the new regulations.

Speaking at the stakeholders’ dialogue hosted by AMCUL at Kampala Serena Hotel, AMCUL Managing Director, Japhet Aritho said, “We are delighted to have hosted this engagement as part of our confidence building in this important Fin-Tech sector. The discussions were thought-provoking and setting the stage for Innovations, inclusion, and affordability that AMCUL is known for.”

“A dialogue like this helps us to identify the gaps that need to be addressed in terms of regulation, improved services, new industry developments, among others. We will explore partnerships that create opportunities for shared value from our different expertise that will grow Digital and financial inclusion in this country. I believe the National Payments System is on the right trajectory of growth and depth.”

Mobile financial services have grown tremendously. Currently, the country has about 40.7 million digital wallets shared between mobile network operators and non-mobile network operators, transacting an average of Shs5.99 trillion in person-to-person. According to June 2022, Bank of Uganda data, the volume of transactions grew from 3.9 billion to 4.8 billion during the same period. This number is projected to grow due to the projected positive economic outlook.

Henry Musasizi, the state minister for Finance- General Duties, acknowledged the growth in the Fintech sector and applauded the players for the good work done. “Airtel Money, with other players, was very instrumental in maintaining the economy during the difficult covid19 lockdown. I thank you for supporting the government is keeping Uganda working during that difficult time. The growth in mobile money services has been phenomenal since it was introduced 10 years ago. It has deepened financial inclusion, lowered the transaction costs, improved rural access to financial services, and integrating greater customer convenience.”

“I applaud our regulators like the Bank of Uganda, Financial Intelligence Authority, Uganda Revenue Authority among others for supporting us in the implementation of the technical and regulatory framework which guides our day-to-day operations. We have made commitments to the development of a fair, predictable and progressive regulatory environment. We will continue to engage to realize these commitments,” Aritho concluded.