FITSPA, UNCDF launch code of conduct for responsible digital lending in Uganda

Kampala, Uganda — The Financial Technologies Services Providers’ Association (FITSPA), in partnership with the United Nations Capital Development Fund (UNCDF), has launched the Industry-Led Code of Conduct for Responsible Digital Lending in Uganda, marking a major milestone for the country’s fast-growing digital finance sector.

The Code, developed through extensive collaboration among regulators, fintechs, development partners, and other ecosystem players, aims to strengthen ethical practices, protect consumers, and support sustainable growth in digital credit services.

Speaking at the launch on Wednesday, FITSPA Chairperson Vincent Tumwijukye emphasized the significance of the initiative in advancing Uganda’s financial inclusion agenda. He noted that while MSMEs contribute over 20% to the nation’s GDP and employ more than 90% of the non-farm workforce, 70% still experience unmet credit needs. Digital lending, he said, remains vital for underserved groups, including women, youth, persons with disabilities, and refugees.

Tumwijukye also highlighted the challenges emerging from rapid sector expansion, such as predatory lending, data misuse, unethical recovery methods, and eroding market trust. He cautioned that these issues had, at times, triggered policy discussions that risked reversing progress in the digital finance space.

To address these concerns, FITSPA partnered with UNCDF, the Mastercard Foundation, and OutboxHub under the 10X Program to spearhead the development of the new Code. Designed by industry actors and aligned with consumer protection principles, the Code focuses on two core objectives:

1. Establishing clear, enforceable standards for responsible digital lending.
2. Safeguarding consumers by promoting safe, transparent, and affordable credit services.

Tumwijukye described the Code as a practical, enforceable framework developed through the Multi-Stakeholder Working Group on Responsible Digital Lending & Policy Action, which includes regulators, financial institutions, credit reference bureaus, and development partners. He urged digital lenders to adopt the standards to rebuild trust and expand financial inclusion.

Representing UNCDF, FinWise Project Coordinator Samantha Malambo commended industry players for their dedication to shaping an industry-led policy instrument. She stated that the initiative aligns with UNCDF’s mission to support inclusive digital economies and praised the Code as a critical step toward a safe and sustainable digital credit market.

Malambo underscored that the launch complements UNCDF’s FinWise Project and the broader 10X Program, both of which aim to unlock capital for MSMEs through inclusive digital finance solutions. She encouraged stakeholders to ensure that the Code is actively implemented rather than treated as a ceremonial document.

She concluded by noting that it is rare for industry growth to be guided by policy frameworks designed and championed by the industry itself, calling the launch a promising development for Uganda’s digital lending landscape.

Mina Shahid, the CEO of Numida Technologies  and Chairperson of the Multi-Stakeholder Working Group on Responsible Digital Lending and Policy Action, expressed appreciation to Fitspa and United Nations Capital Development Fund  for spearheading the development of the Industry-Led Code of Conduct for Responsible Digital Lending in Uganda.

He also thanked all members of the working group—including regulators, digital credit providers, financial institutions, credit reference bureaus, and development partners—for their collaboration and commitment.

Shahid  urged all digital lenders to uphold the Code of Conduct and embrace principles of transparency, fairness, and data protection:

“We have a leading role as digital lenders to treat customers properly. We are responsible to our communities, and we should work hard to sanitise the digital lending industry’s image.”

He highlighted that the Code sets clear standards for fair lending practices, responsible data usage, transparent communication, and accessible grievance redress mechanisms. It serves as a guiding framework, outlining commitments to:

🌟 Fair treatment of customers

🌟 Improved disclosure practices

🌟 Secure handling of data

🌟 Responsible recovery processes

🌟 Transparent dispute resolution

The Code also establishes the foundation for ongoing monitoring, industry learning, and continuous improvement as the digital lending sector evolves. With this launch, Uganda joins a growing list of markets proactively addressing risks associated with digital credit—from predatory lending to misuse of personal data.

This unified, sector-wide vision supports financial inclusion, strengthens consumer confidence, and promotes sustainable growth across Uganda’s digital finance ecosystem.