International Finance Corporation (IFC) a member of the World Bank has extended $1.9million to Agent Banking Company of Uganda (ABC) to support growth of agent banking services in rural areas.
Richard Yego ABC Chief Executive Officer says over two and half years, IFC funds will be used to roll out agent banking network infrastructure and accelerate financial expansion services to improve financial inclusion in rural areas.
“With the shared agent banking platform that connects banks, we believe we will drive financial inclusion by increasing banking services outreach to unbanked, underserved and banked population, “he said.
Yego said although currently there are 7million bank accounts they are optimistic that within two years partnership with IFC the number of bank accounts will be increased by 2million banks accounts.
He added that although access to formal financial has increased substantially in Uganda in recent years as mobile money has become more wide-spread,41 percent of the adult population still lack access to reliable and affordable means to transfer, save and borrow funds especially in rural areas.
IFC Regional Director for Eastern Africa
He said that people living in low incomes in Uganda and elsewhere in Africa need broad range of financial services to take advantage of economic opportunities hence agent banking has been proven to be a sustainable and affordable strategy to expand financial inclusion beyond higher income customers concentrated in cities.
IFC is the largest global development institution focused on the private sector in emerging markets. it has more than 2,000 businesses world-wide. in fiscal year 2018,they delivered more than $23billion in long-term financing for developing countries.
ABC is joint venture undertaking between Uganda bankers association and eclectics international to build and operate a shared agent banking platform that enables connectivity among the financial institutions.
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