By Julius Mugaga Tukacungurwa/ Umoja Standard.
Kampala, Uganda: Albert Ntege the Acting Head of Oversight for Payment Systems and Policy at Bank of Uganda implored FinTech players to understand their business models to know where they fall within the regulation provisions whether they are payment service providers, payment system operators or they offer payment instincts in order to position themselves well in the market.
“I refer FinTech space players to specific regulation 3 and 4 of the Implementing National Systems 2021 which categorically outlines the requirements one has to have and specific forms one has to fill in order to regularize their operations and acquire a license with Bank of Uganda”. Said Albert.
He revealed that Bank of Uganda has no funding for startups to spur rather they ensure that those in space operate in a more favorable environment and lawfully.
On the other hand, he said there is a sand box aimed at testing payment solutions into the market for products of Fin Tech players.
About fraud, Albert said that consumers of these services should report such cases as soon as the occur to FinTech companies and if it is not expedited in 15 days.
While addressing stakeholders in Financial Technology space, Robert Mukiza the Director General of Uganda Investment Authority (UIA) conceded that the cost of doing business is too high in Uganda due to regulatory and bureaucratic tendencies in government MDAs.
He assured stakeholders that the Authority is directing its actions revising these regulations in order to create a favorable environment for FinTech space.
He revealed that they are on the road of updating ‘Investment Code Act’ this year with the aim of breaking bureaucracy that limit FinTech action. He said that this will be a one stop center for all documentation ranging from licenses, certification and others.
He stated that they are also looking at position local businesses and FinTechs to domestic, regional and foreign funding citing that their funding threshold has been lagging behind compared to international investors here.
He promised that they are to consider FinTechs on Uganda Investors Authority (UIA) Small and Medium-Term Enterprises (SME) portal to enable them enjoy forward and backward linkages.
Mukiza committed that the Authority will engage stakeholders in FinTech space to ably discuss matters that affect the ecosystem and devising possible ways to spur their works.
Josephine Oloko the Chairperson of Financial Technology Service Providers Association (FITSPA) mentioned that there is a gap in funding amongst partners citing that a few have benefited and so they are pushing to attract investors both local and foreign to boost their operations.
She cited need for good governance and effective regulations to cater for some critical issues faced in FinTechs especially fraud in that people can have confidence and safety in the services they offer to Ugandans.
She added that they are looking at partnering with other line institutions in that they can share knowledge regarding how they can manage critical challenges and extra expertise in the entire ecosystem.
Josephine also noted that FinTech players are gearing for the National Switch which will provide a platform for clients to easily and cheaply make transactions. This will be spearheaded by the Central Bank of Uganda (Bank of Uganda).
All this was arrived at during FITSPA Annual Fintech Conference Under the theme: “Investments and Partnerships” – How to Thrive in Uganda’s FinTech ecosystem and beyond.