Uganda’s financial sector has received a boost as the Agent Banking Company (ABC) secures a major investment from Goodwell Investments, a Dutch impact investor. This partnership marks Goodwell’s first step into Uganda’s growing fintech scene. It highlights increased global attention to the country’s financial potential.
ABC, founded in 2017, holds a license from the Bank of Uganda as a Payment Systems Operator. The company has been at the forefront of enhancing financial access for underserved populations, utilizing its digital infrastructure. To date, ABC collaborates with 18 regulated financial institutions and five payment providers, leveraging a network of over 15,000 agents across the country.
The funding comes from Goodwell’s €150 million uMunthu II Fund, focused on early-stage companies in industries like financial services, agriculture, logistics, and mobility. This fund follows the success of uMunthu I, which invested in 20 different companies. Goodwell’s has teams in Africa and Europe which demonstrate their dedication to expanding opportunities across African markets.
With this capital infusion, ABC plans to accelerate its expansion by growing its customer base, increasing agent coverage, and launching new services. The funding is expected to drive ABC’s mission of delivering accessible financial services through mobile technology, agents, and merchants.
Richard Jabel, CEO of ABC, emphasized the impact of agent banking on financial inclusion in Uganda. He pointed out the significant growth in service points offering formal financial access, highlighting the importance of this investment in furthering the company’s goals.
Uganda’s financial landscape is evolving, with major players joining the market. In August 2024, Flutterwave, a leading fintech firm, received a Payment Systems Operator license from the Bank of Uganda, enabling Ugandan businesses to use its payment platforms. Flutterwave’s solutions allow for both single and bulk payouts to suppliers and facilitate remittances from abroad.
Similarly, eTranzact obtained its license as a Payment Systems Operator and Service Provider in May 2024. This allows the company to provide digital payment solutions and electronic fund transfers in Uganda. NALA, another fintech player, received an International Money Transfer Operator license in August 2024, enhancing its ability to integrate with mobile money services for cross-border payments.
These advancements point to a dynamic financial sector in Uganda, with increased investment and innovation shaping the future of financial inclusion.
