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The Economic Policy Research Centre (EPRC), in partnership with the African Economic Research Consortium (AERC), on Thursday, August 17, 2023, hosted a half-day dissemination workshop at Sheraton Kampala for studies on digital financial services and financial inclusion in Uganda. The workshop was held under the theme, Actionable Policies for Financial Inclusion, and featured participants in the fintech business, banking and non-banking sectors, industry regulators, business associations, and telecommunication companies, among others.

The presented studies were commissioned by the AERC under the Bill and Melinda Gates Foundation (BMGF) funded project Delivering Digital Financial Services for the Poor in the East African Community (DFSP-EAC) implemented in Kenya, Uganda, Tanzania, South Sudan, Rwanda and Burundi.

Dr. Sarah Ssewanyana, the EPRC Executive Director, in remarks read on her behalf by EPRC Director of Research, Dr Ibrahim Kasirye, said the studies were particularly significant as they touched on areas that require attention from policy makers. She said: “The majority of women excluded from the formal financial system around the globe, about one billion in total, are found in developing countries such as Uganda. At times, something as simple as [not having] a national identity card has proven to be a significant barrier to accessing formal financial services for women.” She added that digital financial services hold a lot of promise in bridging the financial inclusion gap. However, women and some men, especially in rural areas, still find themselves on the wrong side of the coin. She said that barriers such as Internet costs, the high likelihood of women not owning a basic mobile phone, beliefs such as “a woman is not supposed to own a phone”, or the need to seek permission from the husband to open a bank account, have proven to be insurmountable.

Dr. Tom Kimani, the Lead Manager, Training, at the African Economic Research Consortium, said the studies would add to the body of knowledge on understanding the digital financial services (DFS) in Uganda; and would help identify policy gaps and areas of opportunities as well as driving discussions on strategies to address challenges hindering the DFSs.

In line with previous research, the studies clearly show that men had an advantage over women, hence, were more likely to be financially included. Social norms still dominate the everyday life of many rural households and hinder women’s uptake of several digital technologies. Also, women are hindered by Internet costs, poor network coverage in rural areas, and lack of basic equipment such as a mobile phone

Studies presented at the workshop:

1. Digital Finance Policy and its Impact on Financial Inclusion in Uganda by Nicholas Okot and Elizabeth Kasekende.
2. Gender Digital Financing Divide in Uganda: A Quantitative Analysis of Social-Economic Factors by Ambrose Ogwang, Rehema Kahunde, Maya Denis Makika.
3. The Monetary Economics of E-Money and Policy Implications: Evidence from Uganda by NicholasOkot, Isaac M.B. Shinyekwa, Enock N.W. Bulime and Justine Luwedde.
4. Leveraging Digital Services and Market Development for Financial Inclusion by Isaac M. B.Shinyekwa, Dablin Mpuuga, Aida K. Nattabi and Enock, N.W. Bulime.

Dr. Michael Atingi-Ego, the Deputy Governor Bank of Uganda (BoU), noted that technological innovations have generated innovative products and services such as digital credit, savings, investment partnerships, micro-insurance, and efficient payment platforms. These have proven to be helpful in cost-cutting and bridging financial exclusion gaps. He added in a speech read on his behalf by the BoU Director of Finance, Mr. Richard Byarugaba, that some players tend to be short-sighted by only focusing on maximizing profit. This makes their products unaffordable and out of reach for many who would otherwise benefit from them.