By The Bank of Uganda and the Ministry of Finance, Planning, and Economic Development have launched the second National Financial Inclusion Strategy (NFIS). Set to run for 5 years from 2023-2028
Unlike the previous phase, the second phase is focused on deepening formal access to regulated financial institutions as well as increasing income, saving, and investment.
According to Matia Kasaija, the minister for finance, the inclusive nature of the strategy will greatly contribute to the growth of the economy.
Building on the success of the initial strategy spanning from 2017 to 2022, this new phase aims to deepen formal financial services and enhance their quality and usage.
Matia Kasaija who graced the launch emphasized that this marks the start of the journey of Uganda’s full financial inclusion by 2028.
To realize this Kasaija says the starting NFIS is poised on several pillars like increasing household income, saving, and investment.
According to statistics Uganda’s economy produces 300- 400 jobs as compared to 700,000 graduates from different institutions annually. Kasaija says financial inclusivity can end unemployment.
Micheal Atingi Ego the deputy governor Bank of Uganda, emphasized the global significance of the NFIS stating that this enroutes from its pillars that intend to empower the privileged.
The first strategy focused on creating access to financial services, including the establishment of mobile money and banking agents, benefiting the entire Ugandan population.
NFIS II is aligned with the BoU’s strategic plan (2022-2027), with initiatives to foster financial inclusion through digital financial services, effective regulatory frameworks, adequate infrastructure, partnerships, innovation, and consumer protection.
Financial inclusion is crucial for promoting economic growth and reducing poverty. It allows individuals and businesses to save money, access credit, and participate in financial transactions, which can help them grow their businesses and improve their standard of living. Financial inclusion can also help reduce income inequality by providing access to financial services to those who are typically excluded from the traditional financial system.
What has the Ugandan government done to increase financial inclusion?
The Ugandan government has made significant efforts to increase financial inclusion in the country. Here are some of the programs that the government has commissioned to achieve this goal:
National Financial Inclusion Strategy (NFIS): The Ugandan government developed the NFIS in 2017 to guide the implementation of financial inclusion initiatives in the country. The strategy outlines the government’s priorities for promoting financial inclusion, including increasing access to financial services, improving financial literacy, and promoting innovation in the financial sector.
