Blockchain technology can enhance financial inclusion in Uganda, Experts say

Uganda is turning to blockchain technology to boost financial inclusion, with experts predicting significant growth in the country’s financial sector.

The country has made notable strides in financial inclusion, with 88% of its population now accessing financial services, up from 77% five years ago.

However, despite this progress, many Ugandans remain underbanked or unbanked, relying primarily on mobile money services for transactions.

To address this challenge,financial institutions are exploring the potential of blockchain technology.

“Blockchain’s distributed ledger system ensures secure, real-time transactions, addressing concerns over data integrity,” said Francis Lutalo, Head of Business Technology at PostBank Uganda.

A blockchain committee, comprising banks, fintech companies, and telecommunications firms, and led by the Bank of Uganda, is working to develop guidelines for the adoption and regulation of blockchain technology.

PostBank Uganda has already invested in infrastructure and innovation, including the Wendi mobile wallet, designed to provide financial services to underserved communities.

Industry experts believe blockchain technology has the potential to increase trust, financial sector growth, and access to services, ultimately fostering prosperity for Ugandans.

“Blockchain technologies will be a game-changer for personal finance and development in countries that tap into them,” Mr. Lutalo added.

The development comes as Uganda’s financial sector continues to evolve, with technology playing an increasingly important role in driving growth and inclusion.