The Deputy Governor of the Bank of Uganda, Prof. Augustus Nuwagaba, has called for accelerated adoption of secure, inclusive and interoperable digital payment systems to support commerce and economic activity in Uganda.
Speaking at the Bank CEOs’ Dinner hosted by Visa East Africa at Serena Hotel in Kampala on Tuesday, Prof. Nuwagaba said Uganda’s financial system has made notable progress in the uptake of digital payments, driven largely by mobile money and sustained investments in digital financial literacy.
He noted that electronic money transactions recorded strong growth in 2025, with transaction values rising by 28 percent, from Shs 285.9 trillion in the 12 months to December 2024 to Shs 366 trillion in the year to December 2025. Transaction volumes also grew by 17.3 percent over the same period, from 7.8 billion to 9.1 billion transactions.
On the wholesale side, Prof. Nuwagaba said activity on the Uganda National Interbank Settlement System increased by 15.1 percent in value, from Shs 891.3 trillion in 2024 to Shs 1,025.7 trillion in 2025. In contrast, cheque usage continued to decline, with cheque values falling by 4.3 percent from Shs 4.7 trillion to Shs 4.5 trillion over the same period, reflecting the central bank’s policy push to promote digital transactions. The Bank of Uganda is also considering further caps on interbank cheques to encourage wider adoption of digital payments.
“These trends reflect the impact of our collective efforts to promote digital financial services as part of the national financial inclusion agenda,” Prof. Nuwagaba said, noting that Uganda’s Financial Inclusion Index reached 72 percent, while the E-payments Index rose to 38 percent by December 2025.
He highlighted the role of the Second National Financial Inclusion Strategy, under which the Bank of Uganda provides secretarial leadership. The strategy seeks to ensure universal access to affordable and quality financial services. According to the 2025 World Bank Findex Report, access to formal financial services in Uganda increased from 66 percent in 2021 to 73 percent in 2024, largely driven by mobile money uptake.
Prof. Nuwagaba said the mid-term review of the strategy, expected to commence this year, will guide adjustments to strengthen financial inclusion outcomes. Key priorities include reducing barriers to access, expanding the use of affordable and high-quality financial products, strengthening consumer protection, advancing green finance and ESG frameworks, and promoting gender-inclusive financial services.
The Deputy Governor also outlined ongoing and planned initiatives to support electronic payments. These include a feasibility study on the issuance of a Central Bank Digital Currency for Uganda, efforts to better understand blockchain and virtual asset use cases and risks, and the development of a regulatory framework for virtual assets.
He further said the Bank of Uganda is undertaking an end-of-term evaluation of the National E-Payments Strategy 2021–2026, with work underway on the Second National E-Payments Strategy covering 2026 to 2031. The new strategy is expected to place greater emphasis on digital infrastructure, broader stakeholder engagement, stronger monitoring and evaluation frameworks, and adequate resourcing for implementation.
Other priority actions include reviewing the regulatory framework under the National Payment Systems Act, strengthening the regulatory sandbox, implementing anti-fraud initiatives under the Financial Sector Anti-Fraud Consortium, developing the Second Financial Literacy Strategy for 2026 to 2031, and continued engagement on the National Payments Switch to address interoperability challenges in the financial sector.
Prof. Nuwagaba said further progress will depend on consolidating regulatory frameworks, investing in digital public infrastructure such as the national switch, digital ID systems and national cyber resilience platforms, strengthening public-private partnerships in digital literacy, and enhancing regulatory oversight for cybersecurity.
He pointed to shared objectives between the Bank of Uganda and Visa, noting that Visa has partnered with financial institutions to promote e-payments, contactless transactions, virtual cards and card-based loyalty programmes, while also working with stakeholders to strengthen cybersecurity through tools such as AI-driven fraud detection, real-time analytics and specialised training.
Looking ahead, Prof. Nuwagaba said there is scope for deeper collaboration with Visa, including use of the regulatory sandbox through fintech accelerator programmes, support to anti-fraud initiatives, addressing merchant surcharges on card payments, backing the national e-payments and financial inclusion strategies, and expanding financial literacy and consumer awareness efforts, particularly among women and young people.
