The Ministry of Finance, Planning, and Economic Development (MoFPED) is set to launch the second five-year National Financial Inclusion Strategy (NFIS) for the period 2023–2028.
This was confirmed by Alex Patrick Ochan, the Assistant Director of the Financial Inclusion Division at the National Payment Systems Department of the Bank of Uganda, while addressing the media on November 29, 2023.
According to Ochan, the launch scheduled for November 30, 2023, will be done by Hon. Matia Kasaija, the Minister of Finance, Planning, and Economic Development, in partnership with the Bank of Uganda, key financial sector stakeholders, and policymakers.
According to Ochan, financial inclusion has become a global development priority due to its role in supporting overall inclusive growth and the achievement of broader Sustainable Development Goals (SDGs).
“Access to financial services improves households’ ability to participate in economic activities, reduces vulnerability to shocks, and contributes to building an entrepreneurial community that can actively participate in wealth creation and inclusive economic development,” Ochan said.
He noted that the Government of Uganda launched its first NFIS in 2017–2022, which ended in September 2022, with significant achievements in account ownership mainly driven by access to mobile money and an increment in formal access points attributed to agent banking services, among others.
“The second strategy provides a roadmap for financial inclusion in Uganda for the next five years, from 2023 to 2028. Over 50 stakeholders, including banks, fintechs, government ministries, departments and agencies, development and humanitarian organizations, and research groups, were assessed to understand the implementation, performance, successes, challenges, and lessons learned from the first strategy,” Ochan added.
Ochan further said that the engagements recognized the achievements and highlighted essential changes that should be made in the new strategy.
Talking about the new strategy, Ochan noted that it aims to reduce poverty and promote economic growth through affordable and quality financial services, such as savings, credit, insurance, remittances, pensions, investment, and Islamic banking financial products and services.
“The new strategy also emphasizes undeserved segments, such as women, forcibly displaced persons or refugees, youth, MSMEs, rural dwellers, and people with disabilities. It proposes strategic interventions to be implemented by various stakeholders over the next 5 years,” Ochan added.
The National Financial Inclusion Strategies (NFIS) include an analysis of a country’s current financial inclusion status and constraints, measurable goals, how and when the country proposes to reach these goals, and how the progress and achievements of the NFIS will be assessed.
