Uganda's financial inclusion success is leaving women behind

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OPINION

By Samuel Pepela

Uganda has rightfully celebrated a revolution in financial inclusion over the past decade. The widespread adoption of mobile money has brought basic transactions within reach for millions, a fact confirmed by the 2023 Fin Scope survey showing 81% of Ugandan adults are now financially included.

However, this national success masks a troubling gender gap. When we examine formal banking services like savings, loans, and insurance, women are being left behind. While 68% of adults use formal services, a deeper look reveals a stark disparity. IMF analysis shows only 35.8% of Ugandan women hold a commercial bank deposit, and a mere 2.4% have accessed a bank loan.

The root cause is a fundamental mismatch. Ugandan women are the engine of our informal economy, working in trade, agriculture, and small enterprises with irregular incomes. Yet, banks traditionally design products for salaried employees with steady pay slips and collateral—assets like land titles that women are less likely to own. Women also face time and mobility constraints, making branch visits and complex paperwork significant barriers.

Bridging this gap is an economic necessity. The solution requires a deliberate shift in how the financial sector serves women, moving beyond a one-size-fits-all model.

The way forward is clear. First, banks must innovate with flexible, low-fee products tailored to irregular incomes. This includes small, short-term digital loans for business inventory or mobile-based savings accounts.

Second, we must embrace alternative credit assessment. Instead of relying solely on traditional collateral, banks can leverage technology to analyse a client's mobile money transaction history, which provides a clear picture of financial behaviour.

By unlocking the vast economic potential of Ugandan women through tailored financial services, we can move from partial inclusion to genuine, shared prosperity. The tools are available; the need is for the will to adapt.

The writer is a Master of Business Administration Student; Makerere University Business School