Mobile payments and wallets have helped the African continent as a whole with regards to wider economic development via digital IMAGE SOURCE RICHIE SANTOSDIAZ

Located in East Africa, Uganda has a growing fintech ecosystem that many across the world might not be aware of.

Economic development overview

The country’s overall aspirations can be seen with its Uganda Vision 2040 strategy, whereby much of the country will have a diverse, sustainable and digital economy – similar long-term aspirations as other countries across the Middle East and Africa (MEA).

Fintech has been growing in the country and has played a growing role in various aspects of people’s lives. Having been to the country this year, I’ve seen first-hand that in particular with payment solutions it has been evident. In particular for a country whereby much of it is centred around USSD to cater to the current reality of most of its population not having smartphones (only 16 per cent of Ugandans have a smartphone).

Mobile penetration in Uganda is at 49 per cent. This reality has promoted financial inclusion for many Ugandans. In fact, the country’s digital economy contribution is around seven per cent of its gross domestic product (GDP), which is higher than, for instance, countries in the country such as South Africa at three per cent.

The Financial Technologies Service Providers Association (FITSPA), which is an independent, nonprofit, membership-based organisation founded in 2017 in partnership with the Financial Sector Deepening Uganda (FSDU) project that represents Uganda’s local fintech community and global fintech institutions operating in the country. Having nearly 160 members at the end of 2021, they have played a strong part in the community.

Their recently published report Study on The State of Uganda’s Fintech Industry which was done by Deloitte and commissioned by FITSPA, discovered that the country’s fintech composition was around half (47 per cent) on payments, followed by bank infrastructure at 23 per cent, investments and savings at 16 per cent, lending at seven per cent, insurance at five per cent, and markets at two per cent. The following will highlight other of their key findings.

First, with regards to payments, as commented based on my own personal observation in the capital and commercial hub of Kampala, mobile money in particular dominated; the Deloitte report highlighted this too.

In the study, it highlights that “players are typically aggregators who provide mobile wallets, telecoms who provide mobile money platform, and bankers providing exco account services or mobile wallet solutions, all combined to serve utilities, bank-to-consumer, e-commerce, and end-user retail payments. In addition, there is an increased number of mobile and digital wallet providers that are keen on tapping into the payments’ subsector.”

Second, with regards to savings & lending from the report, fintechs dominate in niche markets such as asset lending, solar, agro-business, micro-loans and savings. Fintechs have capitalised on their understanding of the traditional Ugandan SACCOs and microfinance structures to offer digital transformation solutions to this market segment.

Third, e-commerce grew and this further accelerated during the Covid-19 pandemic. As reported, whereby Uganda had one of the world’s longest lockdowns, the Deloitte report saw Ugandan players like Safeboda and Jumia grow, in addition to new entrants like Glovo.

The disparity of its popularity is still evident with its reliance on the internet, whereby it can explain that Kampala area has the concentration of this due to it also having a higher smartphone usage compared to the rest of the country.

Fourth, with respect to remittances, mobile money helped the unbanked in the country, whereby today fintechs like Airtel Money, MTN Mobile Money, Eversend and others have enhanced inter-connectivity between financial institutions, businesses and the end-consumer via mobile and digital wallets.

According to the same source, mobile money penetration has grown at a fast pace with over 30 million registered customers and transaction value of Ugandan Shillings UGX 79.8trillion in 2020 compared to 0.6 million customers and transactions worth UGX133 billion in 2015.

As many Ugandans work abroad and send much of their money back to the country, in particular for a developing country like Uganda to have mobile money currently dominating remittances in Uganda.

Finally, financial technology regulations have shifted from more traditional banking to more mobile money, as well as more comprehensive open-ended financial regulations.

This has been highlighted for instance in my own Fintech: Middle East and Africa (MEA) 2021 report by The Fintech Times, as well as the Deloitte report. The country’s policies that have shown the developments of the sector include the National Payment Systems Act, whereby the Bank of Uganda introduced a new poly that will promote the payment systems in the country. In addition, with regards to fintech licenses and regulatory sandbox, the Bank of Uganda has been deploying fintech licences and sandbox to help promote innovation and regulate it.

For instance, Yo-Uganda Limited (‘Yo!’) is a 16-year-old fintech firm based in Uganda. According to Gerald Begumisa, managing director at Yo-Uganda Limited: “We introduced our mobile payments aggregation service in 2011, the first in Uganda, to the then-fledgling fintech market.

“Beyond the limited use for person-to-person transfers at the time, we saw the opportunity to extend the immense benefits of mobile financial services to a great number of use cases, and segments.

“Fast forward to 2022, we are among the first fintechs licensed by the Central Bank of Uganda, and our services are being used by thousands of merchants, corporations, government entities and financial institutions, processing payments to and from millions of customers.

“We are also engaged in a partnership with Mastercard to digitise workflows and payments in Agriculture value chains in Uganda, which has seen more than 200,000 farmers onboarded within the first six months of its commencement.” The Fintech Times

South Sudan's rival parties on Sunday reached a breakthrough and signed an agreement on the formation of a unified armed forces command.

The deal was reached in Juba following mediation by neighbouring Sudan.

A deadlock between the parties to the South Sudan peace agreement on security arrangements had been holding up the implementation of the 2018 peace deal.

Tensions between forces loyal to President Salva Kiir and SPLM/A-IO leader Riek Machar have spiralled recently, triggering fears of a return to conflict in the country.

“It is important that we silence the guns so that South Sudan can prosper…Not everything is perfect but we want to say that we want to move the country forward,” said Minister of Mining, Martin Gama Abucha, who signed the deal on behalf of Machar’s party the SPLM/A-IO.

“This is to inform everyone that we have agreed today to unify the military command. We have agreed to divide the positions because peace is precious. We have to agree so that we develop the country,” added Kiir’s national security adviser Tut Gatluak Manime.

The deal sets out terms to integrate opposition commanders into the armed forces. The parties signed a matrix for the creation of a unified armed forces command within a week. They also agreed to graduate and deploy the unified forces in training camps within a period not exceeding two months.

The parties also agreed on a regular meeting between President Kiir and his five deputies to build trust among the parties. - Radio Tamazuj

RunCzech finally returned to Prague after three years. Sportisimo Prague Half Marathon was attended by around 9000 runners, among them also elite world athletes.

Four Kenyans ran to the finish line in under one hour. The Prague Half Marathon was dominated by Keneth Kiprop Renju in a time of 59:28. 

Philemon Kiplimo Kimaiyo finished second and Mathew Kipkorir Kimeli was third.

The fastest woman of this year’s edition was Nesphine Jepleting with a time of 1:06:57. The best Czech runner was Jiří Homoláč, who managed the half marathon in 1:04:36, the fastest Czech was Hana Homolková (1:20:31).

“I really liked the race, I enjoyed it a lot. Even though it was too cold, it was good. I had a more critical moment in the middle of the half marathon. Even though I didn’t feel pressure on myself, I wanted to win,” Renju said at the finish. “The weather caught me by surprise, I didn’t expect it to be so cold. The worst was the headwind, which made it really hard in some moments. I wanted to break my personal best, but I’m glad I showed such time. It’s a good start to the season, next time I could reach my maximum,” Jepleting said.

Already at the fifth kilometer, a group of elite runners was formed, eight Kenyans had the same time. At the tenth kilometer, only a group of four, Keneth Kiprop Renju, Philemon Kiplimo Kimaiyo, Bernard Kimeli and Mathew Kipkorir Kimeli, were at the front. Everyone had a time of 27:52.

The same four runners led the fifteenth kilometer. Before the finish, Renju and Kimaiyo grabbed each other, after crossing the Mánes Bridge, the first mentioned one broke away, who then first reached the finish.

“The race was very windy, from the sixth kilometer it was causing problems because there was a headwind. I had to lean into it from the seventh kilometer. I would like to run here again next year because this track is fast. A world record may fall here. Despite the conditions here, it was fast,” Renju added at the finish. A world record may fall here. Despite the conditions here, it was fast,” Renju added at the finish.

For the women, From the 10th kilometer, the favourites Nesphine Jepleting and Chepet Irine Cheptai broke away from the rest, they were also at the front at the fifteenth kilometer and built up a one-and-a-half-minute lead over the others. At the finish, Jepleting finally rejoiced in the triumph.

“I could run faster, but it was too cold and windy. During the race, I doubted I could win. But the mental strength, my head, helped me. In the group we ran until the twelfth kilometer, then we accelerated as we wanted,” said the fastest woman Nesphine Jepleting.

Yeremchuk ran for Ukraine

Sofia Yaremchuk, who is originally from Ukraine but has been racing for Italy for a year, improved her personal best. She finished fifth in a time of under 1 hour and 10 minutes.

“I ran for Ukraine and for all the people and men who are fighting in Ukraine. I want to tell everyone that Ukraine does not want war, the whole world does not want war, we all want peace,” Yaremchuk added, showing a time of 1:09:09. “I’m happy because I have my new record and I finished with the Ukrainian flag.”

Source: Prague Morning