Ensuring that all Ugandans—regardless of gender, geography, or economic status—have access to quality financial services is central to economic empowerment and inclusive growth. Over the past decade, Uganda has implemented comprehensive strategies to bridge financial gaps. This article reviews key policies, achievements, and persistent challenges as the nation moves forward.

1. The National Financial Inclusion Strategy (NFIS): Phases I & II

NFIS I (2017–2022)

Launched jointly by the Ministry of Finance and the Bank of Uganda, NFIS I targeted five pillars of reform:

1. Expanding access via agent banking and self-help groups
2. Strengthening credit infrastructure—via Agricultural Credit Facility, Emyooga, Parish Revolving Fund, and the Security Interests in Movable Property Act (2019)
3. Building digital infrastructure with the National Payment System Act (2020), e-payment gateway, and ID verification systems
4. Broadening savings and insurance access—via regulation of micro-insurance and establishing the Uganda Microfinance Regulatory Authority
5. Protecting consumers through financial literacy, consumer protection regulations, and financial data collection mechanisms IMF eLibrary

By 2021, these pushed formal financial inclusion to 66% of adults—20 percentage points above the East African Community average IMF eLibrary+1The Observer.

NFIS II (2023–2028)

Building on prior gains, NFIS II added new strategic goals:

• Developing inclusive green finance
• Promoting gender-responsive financial services

It aims to reach 85% financial inclusion by 2028 Ministry of FinanceIMF eLibraryScribd.

2. Key Progress Metrics

• Account Ownership: Mobile money and bank account access now includes 66% of Ugandan adults by 2021 IMF eLibrary+1.
• Agent Banking Access Points: Access points reached 309.5 per 10,000 adults by 2023, far exceeding earlier targets The ObserverMinistry of Finance.
• Gender Inclusion: Mobile money access among women rose from 43% in 2017 to 53% in 2021, narrowing the gender gap substantially www.slideshare.netScribd.
• Rural Inclusion: Despite improvements, rural financial access remains lower (32% in rural vs. 42% in urban areas) The ObserverIMF eLibrary.

3. Persistent Gaps and Challenges

A. Geographic and Infrastructure Barriers

• Agent networks remain largely urban-centric; only 17% cover remote regions www.slideshare.netIMF eLibrary.
• Digital access limited by low smartphone penetration (just ~16%) and poor internet coverage (29% penetration) www.slideshare.net.

B. Youth and Legal Exclusion

• Under-18s cannot independently open accounts due to constitutional constraints www.slideshare.net.
• Young adults struggle to meet collateral and identity requirements www.slideshare.netIMF eLibrary.

C. Credit Infrastructure Weakness

• Only 6.9% of adults were covered by Credit Reference Bureaus in 2020 Scribd.
• High cost and limited access to credit scores hinder lending to low-income and informal borrowers ScribdIMF eLibrary.

D. Underserved Demographics

• Elderly, displaced persons, persons with disabilities, and rural dwellers remain excluded—often due to lack of IDs, tailored services, or regulatory hurdles www.slideshare.netIMF eLibrary.
• Women face legal and economic obstacles, owning fewer assets and accessing less credit despite participation in savings groups WikipediaScribd.

E. Low Financial Literacy and Trust

• Financial literacy remains low—20-24% of adults as of 2017 Finclusion.
• Many users distrust formal institutions or lack understanding of financial products New VisionWatchdog Uganda.

4. Innovative Models and Sector Integration

Several sector-specific initiatives are helping close the financial inclusion gap:

• Agri-Finance Platforms like aBi Finance bundle credit, training, and market access for farmers New Vision.
• FinTech Interventions such as MoKash and Airtel Wewole enable low-barrier saving and borrowing—even on feature phones—helping rural and underserved markets New VisionLawpointuganda.
• Digital Financial Services Expansion: Through DFS, Uganda is exploring beyond payments into savings, insurance, investment, and credit via partnerships championed by UNCDF and BoU UNCDF.

5. Summary: Where Things Stand

Theme	Progress to Date	Remaining Gaps
Account Ownership	66% adult inclusion; growing mobile money access	Rural, youth, ID-constrained groups left behind
Infrastructure & Access	Agent network improved; digital payment expansion	Connectivity, device costs, rural coverage remain low
Credit Tools	Legal reforms passed (CRB, movable collateral)	Low coverage, poor data quality, high lending risk perception
Underserved Groups	Gender gap narrowing; youth-focused policies	Disability, refugees, elderly still underserved
Literacy and Awareness	Strategy in place for consumer literacy	Practice remains low; informal habits persist

6. Looking Forward: What’s Needed?

1. Better Infrastructure & Access: Expand agent networks and digital access in rural areas. Consider tiered KYC and mobile interoperability CGAPwww.slideshare.net.
2. Credit Inclusion Bridges: Enhance CRB coverage and streamline access; incentivize reporting from MFIs and SACCOs.
3. Focus on Groups Left Behind: Develop ID solutions and tailored financial products for youth, persons with disabilities, and rural women.
4. Strengthen Financial Literacy: Scale community-level programs with practical tools via radios, schools, and local languages Watchdog UgandaNew Vision.
5. Support FinTech Innovation: Cultivate fintechs via regulatory clarity (sandboxes), affordability in licensing, and inclusive product development Lawpointuganda.
6. Bring Products to Underserved Sectors: Promote agriculture and green finance; incentivize flexible lending models and blended insurance. Align with PDM and other grassroots programs New VisionUNCDF.

Conclusion

Uganda has made meaningful progress toward inclusive financial services—driven by NFIS frameworks, agent networks, mobile technology, and regulatory reform. But systemic barriers persist for rural populations, youth, women, and marginalized groups. The success of NFIS II will hinge on targeted, cross-sectoral strategies that both expand infrastructure and elevate financial capability for every Ugandan.