Agent Banking Company of Uganda, Ltd (ABC) has received an undisclosed investment from Goodwell Investments, a leading impact investor focused on promoting inclusive growth in emerging markets. This investment will help ABC expand its services and deepen financial inclusion in Uganda by providing quality, affordable financial solutions to underserved communities.
Goodwell’s uMunthu II Fund Targets African Growth
The investment comes from Goodwell’s EUR 150 million uMunthu II fund, which is dedicated to supporting impact-driven businesses across Africa. This marks Goodwell’s first investment in Uganda, though the firm has extensive experience in the financial inclusion sector through previous initiatives across the continent. With the new capital, ABC plans to pursue ambitious growth strategies, including expanding its client base, increasing agent coverage, and launching new services.
The Urgent Need for Financial Inclusion in Africa
Financial inclusion remains a significant challenge in sub-Saharan Africa. According to the World Bank, 45% of the population aged 15 and older were unbanked as of 2021. One proven solution is agent banking, where local shopkeepers and kiosk owners are authorized to carry out basic banking transactions like cash withdrawals and deposits. By expanding networks of bank agents, financial institutions can reach previously unserved populations and bring them into the formal financial system.
ABC’s Innovative Approach to Agent Banking
ABC’s platform provides the technology needed to connect these local agents with financial institutions, enabling seamless transactions between banks and underserved communities. Founded in 2017 through a partnership between the Uganda Bankers’ Association (UBA) and Eclectics International Ltd, ABC was created in response to the Financial Institutions (Amendment) Act of 2016, which introduced agent banking as a key strategy to improve financial inclusion in Uganda.
“Our business was founded to meet the genuine need for expanding reach and improving access to quality and affordable financial services in Uganda,” said ABC CEO Richard Jabel. He noted the remarkable growth in agent banking, with over 15,000 authorized agents now providing services nationwide. “This development has greatly simplified access for previously underserved communities, enabling them to benefit from a range of formal financial services.”
Goodwell’s Investment to Propel ABC’s Next Phase of Growth
Jabel emphasized the importance of Goodwell’s investment in ABC’s future plans: “This funding will be crucial in the next stage of our growth, as we enhance our service offerings to include a complete suite of basic financial services accessible through mobile phones, agents, and merchants.” He added that ABC is excited to collaborate with Goodwell to transform the financial services landscape in Uganda and eliminate barriers to financial inclusion.
The partnership between Goodwell and ABC represents a significant step forward in advancing financial inclusion in Uganda, providing greater access to banking services for all citizens and contributing to the country’s overall economic development.