Sylvia Duruson
Uganda’s financial services sector is experiencing a significant boost as Agent Banking Company (ABC) secures investment from Goodwell Investments, a Dutch impact investor. This development marks Goodwell’s entry into Uganda’s financial inclusion landscape, signaling growing international interest in the country’s fintech potential.
ABC, established in 2017, operates under a license from the Bank of Uganda as a Payment Systems Operator. The company has made strides in enhancing access to financial services for underserved communities through its digital platforms. Currently, ABC serves 18 supervised financial institutions and five payment service providers, boasting a network of over 15,000 bank agents across Uganda.
The investment comes from Goodwell’s €150 million uMunthu II Fund, which targets early growth-stage companies in sectors such as financial services, food and agriculture, mobility, and logistics. This fund builds upon the success of uMunthu I, which supported 20 portfolio companies. Goodwell maintains teams in Nigeria, South Africa, Kenya, and the Netherlands, underlining its commitment to African markets.
With this new funding, ABC aims to pursue ambitious growth plans. These include expanding its client base, increasing agent coverage, and rolling out new services. The investment 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.
Richard Jabel, CEO of ABC, highlighted the transformative impact of agent banking on financial services accessibility. He noted the exponential growth in service points through which consumers can access formal financial services, emphasizing the importance of this investment in furthering ABC’s mission.
The financial landscape in Uganda is becoming increasingly dynamic, with several notable payment providers entering the market. Flutterwave, a prominent fintech company, obtained a Payment Systems Operator license from the Bank of Uganda in August 2024. This license enables businesses in Uganda to access Flutterwave’s payment solutions, including single and bulk payouts to suppliers, employees, and partners. It also facilitates remittances from Ugandans in the diaspora to their families back home.
In a similar vein, eTranzact received an operational license as a Payment Systems Operator and Payment Service Provider (Class A) from the Bank of Uganda in May 2024. This license allows eTranzact to offer digital payment platforms, mobile banking solutions, and electronic fund transfers in the country.
Further diversifying the financial services landscape, NALA, another fintech company, was granted an International Money Transfer Operator license by the Bank of Uganda in August 2024. This license permits NALA to integrate directly with mobile money services, potentially streamlining international money transfers.
These developments collectively point to a rapidly evolving financial services sector in Uganda, with a strong focus on digital solutions and increased accessibility. As companies like ABC expand their operations 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.
