Business
Minister Asiimwe says financial innovation can propel tenfold growth
“Technology and innovation should be at the centre of efforts to accelerate economic growth because they can contribute to the country’s development by making financial services more accessible and efficient,” the minister added.
The launch of the eMCA platform comes as financial institutions increasingly turn to digital technology to deliver services and reach customers.
By: Simon Okitela, Journalist @New Vision
KAMPALA - Innovations in Uganda’s financial sector could play a critical role in driving the country’s Tenfold Growth Agenda, according to the minister of Science, Technology and Innovation Jonard Asiimwe.
The minister said the increasing use of technology in financial services presents an opportunity to improve access to finance and support businesses to expand that have in the past been left out by traditional banking.
He was speaking on Tuesday in Kampala during the launch of Ecobank’s Electronic Merchant Cash Advance (eMCA), a digital platform designed to provide financing to merchants.
Asiimwe said financial-sector players need to continue embracing innovation and developing digital solutions that address the changing needs of businesses and the wider economy.
“Technology and innovation should be at the centre of efforts to accelerate economic growth because they can contribute to the country’s development by making financial services more accessible and efficient,” the minister added.
The launch of the eMCA platform comes as financial institutions increasingly turn to digital technology to deliver services and reach customers.
Through digital platforms, businesses can potentially access financial services without relying entirely on traditional processes, which can be time-consuming and costly.
“I want to urge stakeholders in the financial and technology sectors to strengthen collaboration and invest in solutions that can support entrepreneurs and businesses. Innovation should not only focus on introducing new technologies but also on ensuring that those technologies solve practical challenges faced by Ugandans and businesses.”
Grace Muliisa, Managing Director, Ecobank Uganda, in her remarks said Uganda’s ambition of growing its economy tenfold by 2040 is a feasible goal that will require solution-oriented innovations.
The launch of the eMCA platform comes as financial institutions increasingly turn to digital technology to deliver services and reach customers.
Through digital platforms, businesses can potentially access financial services without relying entirely on traditional processes, which can be time-consuming and costly.
“I want to urge stakeholders in the financial and technology sectors to strengthen collaboration and invest in solutions that can support entrepreneurs and businesses. Innovation should not only focus on introducing new technologies but also on ensuring that those technologies solve practical challenges faced by Ugandans and businesses.”
Grace Muliisa, Managing Director, Ecobank Uganda, in her remarks said Uganda’s ambition of growing its economy tenfold by 2040 is a feasible goal that will require solution-oriented innovations.
“eMCA is our contribution to that national agenda. It takes the everyday commerce Ugandan businesses already generate and turns it into credit, at speed and at scale. When capital moves faster through the real economy, inventory turns faster, suppliers are paid on time, jobs are created, and tax revenue grows. That is how a banking sector participates in national transformation rather than merely observing it,” Muliisa stated.
David Mpanga, Ecobank’s Board Chairman described the product as a platform that will allow Ugandans to access funds to support their businesses without presenting collateral as was in the past.
“This is a first-of-its-kind digital lending solution in Uganda: collateral-free financing which is approved digitally and priced off a merchant's own transaction history, in direct support of the country's Tenfold Growth Strategy,” Mpanga added
Uganda's Tenfold Growth Strategy sets out to expand the economy from about $50b to $500b by 2040, with the private sector, and small and medium enterprises in particular, carrying much of that expansion.
Small businesses account for the overwhelming majority of Ugandan enterprises and employment, yet remain the segment least served by conventional, collateral-based credit. eMCA is designed to close precisely that gap by financing a function of commercial activity rather than of asset ownership.
The launch highlights the growing role of digital financial services in Uganda’s economic transformation, particularly as the country seeks to mobilise private-sector investment and expand business activity.
David Mpanga, Ecobank’s Board Chairman described the product as a platform that will allow Ugandans to access funds to support their businesses without presenting collateral as was in the past.
“This is a first-of-its-kind digital lending solution in Uganda: collateral-free financing which is approved digitally and priced off a merchant's own transaction history, in direct support of the country's Tenfold Growth Strategy,” Mpanga added
Uganda's Tenfold Growth Strategy sets out to expand the economy from about $50b to $500b by 2040, with the private sector, and small and medium enterprises in particular, carrying much of that expansion.
Small businesses account for the overwhelming majority of Ugandan enterprises and employment, yet remain the segment least served by conventional, collateral-based credit. eMCA is designed to close precisely that gap by financing a function of commercial activity rather than of asset ownership.
The launch highlights the growing role of digital financial services in Uganda’s economic transformation, particularly as the country seeks to mobilise private-sector investment and expand business activity.