Uganda’s Finance Minister Maria Kiwanuka has urged local financial institutions to invest in state of the art mobile solutions in order to make banking more accessible to the general public.
During a meeting held this week in the country’s capital Kampala, Kiwanuka said financial institutions in the country need products that will lead to financial inclusion and reduce the cost of doing business.
The meeting also marked the launch of InterSwitch, a Nigerian company that has acquired 60% of Bankom Uganda, a provider of inter-switching services to local banks and microfinance institutions. Bankom hopes the deal will allow them to expand into the rest of Africa.
Despite Uganda’s massive gains in the telecom and financial sectors in recent times, Kiwanuka said there’s a huge gap in terms of the absence of mobile payment solutions that can allow the government and companies to collect revenue efficiently.
“With easier payment systems, we will see increased voluntary tax compliance and in return see improved tax collection,” said Kiwanuka.