Uganda’s digital loan disbursements soar past UGX 2.9 trillion, driving financial inclusion to 67 percent 

Digital loan disbursements in Uganda have more than doubled, reaching an impressive 102.4 million transactions valued at UGX 2.9 trillion, signaling significant strides in financial inclusion across the nation. The Bank of Uganda (BOU) made this revelation, noting that the Financial Inclusion Index has already reached 67% by March 2025, underscoring enhanced access to credit for Ugandans.

The announcement was made at the 2nd ICT National Summit by Dr. Tumubweinee Twinemanzi, the Executive Director of National Payment Systems at the Bank of Uganda. Dr. Twinemanzi emphasized the Central Bank’s pivotal strategic role in driving Uganda’s digital transformation within the financial sector.

In his keynote address at a dialogue organized by ICTA Uganda, Tumubweinee highlighted Uganda’s critical juncture in its economic journey, striving for an ambitious yet necessary tenfold growth in its Gross Domestic Product (GDP) by 2040. This ambitious target necessitates a robust and digitally empowered financial ecosystem.

The BOU’s commitment to this transformation is encapsulated in its E-Payments Strategy (2021-2026), which focuses on key pillars: promoting infrastructure development, operationalizing robust legal and regulatory frameworks, fostering innovation while ensuring consumer protection, and strengthening collaborative arrangements within the financial ecosystem.

“BoU is not merely an observer in the digital space; we are active architects of Uganda’s digital future,” Dr. Twinemanzi stated. “Our Regulatory Sandbox continues to serve as a dynamic environment for financial innovation, nurturing promising FinTech entities.” This proactive stance underscores the central bank’s role in guiding and facilitating the growth of digital financial services.

However, alongside the progress, Dr. Tumubweinee also raised pertinent concerns regarding the burgeoning digital financial space. He highlighted the growing risks associated with cybersecurity threats, fraud, and an increasing reliance on foreign technology. He particularly cautioned about the complexities and lack of transparency often inherent in emerging technologies like Artificial Intelligence (AI).

He urged for a careful balance between fostering innovation and maintaining financial system stability, emphasizing the critical need to minimize systemic risk. While the ICT sector currently contributes approximately 1.5% to Uganda’s GDP, projections indicate a potential increase to 2.5% by 2029-30 if current growth trends persist. Nevertheless, Dr. Tumubweinee cautioned that incremental growth alone is insufficient. “We need a paradigm shift. The winners will be those who adapt early,” he asserted, stressing the urgency for transformative change.

Reiterating the Bank of Uganda’s forward-looking approach, Dr. Tumubweinee Twinemanzi concluded, “The Bank does not see itself merely as a regulator, but as a participant in Uganda’s digital future. This includes exploring frontier technologies such as Central Bank Digital Currencies.” This statement signals BOU’s readiness to embrace cutting-edge financial innovations to further secure and advance Uganda’s economic landscape.