Uganda’s financial services sector, powering growth and unlocking new opportunities

Uganda provides one of Africa’s compelling case studies of how the financial services sector is transforming. Mobile money platforms are driving financial inclusion and rapidly reshaping the mainstream banking sector. Both the traditional banking sector and the mobile money industry remain critical to Uganda’s economic development. Uganda also demonstrates how the relationship between financial-sector development, broader economic growth and investment, such as in oil and gas, can increase savings, expand financial intermediation and support long-term prosperity.

Mobile money numbers paint a picture of a global financial revolution

Juxtaposing the growth of these two industries highlights the expansion of mobile money and theserious competition it poses for banks. The table here illustrates how mobile money has already made an impact. Present in Uganda since 2009, mobile money had grown from zero to 21.6m mobile accounts in 7 years, with persistent growth to 53.6m by 2025. According to the GSMA, State of the Industry Report on Mobile Money 2026, more than $2 trillion flowed through mobile money wallets globally in 2025.

As reported in the Who Owns Whom report on the financial services sector in Uganda, the country’s mobile money segment has become central to the country’s financial system. Transaction values rose by 27.3% to USh363.8tn in 2025, up from USh285.8tn in 2024, and volumes expanded by 19.5% to 9.2 billion from 7.7 billion over the same period.

How mainstream banks are responding to technological advancements

Banks generally offer a wider range of services and better facilitation of financing via debit and credit cards as well as forex transactions, supported by the country’s foreign exchange regulations, which limit authorised agents. However, technology has disrupted the industry and shifted the boundaries of established infrastructure. Traditional banks had no choice but to compete by reducing the number of branches and moving toward internet and mobile banking.

The competition between traditional banking and mobile money can be compared that between terrestrial and satellite communications. It produces healthy competition, builds on respective strengths and fosters innovation.

Uganda’s financial services sector has performed strongly and is central to the country’s growth ambitions. However, sustainable economic development cannot occur in isolation; other sectors must also contribute.

Growth prospects in Uganda

The country’s government seems to be taking this into account by actively supporting the development of Uganda’s oil and gas discoveries, recognising their potential contribution to broader economic growth, as highlighted in the Who Owns Whom report. Bringing these discoveries to commercial exploitation will attract foreign direct investment (FDI), bring technology, generate economic activity, and create wealth. With a higher standard of living and higher saving rates, growth in deposits in the financial system will promote prosperity.

The balance between growth drivers and ESG sustainability appears to be in place in Uganda’s financial-services sector, demonstrating that technological disruption does not necessarily replace incumbent institutions; it often strengthens the entire ecosystem. As mobile money and banking continue to converge, the real opportunity lies in expanding financial inclusion, mobilising savings and supporting investment, thereby creating a stronger foundation for sustainable economic growth.