- Uganda's Agent Banking Company (ABC), a technology-focused financial services firm, has secured an undisclosed investment from Goodwell Investments.
- The impact investor based in the Netherlands is marking its entry into Uganda’s financial inclusion sector with an investment in ABC.
- The investment, provided through Goodwell’s €150 million uMunthu II Fund, will enable ABC to pursue its growth ambitions, including expanding its client base, increasing agent coverage, and deploying new services.
Goodwell has teams in Nigeria, South Africa, Kenya, and the Netherlands. Its uMunthu II fund aims to provide equity to early growth-stage companies in sectors such as financial services, food and agriculture, mobility, and logistics, building on uMunthu I, which had 20 portfolio companies.
ABC, founded in 2017, is licensed by the Bank of Uganda (BOU) as a Payment Systems Operator. The company focuses on increasing access to and usage of financial services by underserved communities in Uganda through its digital platforms. It boats of currently serving 18 supervised financial institutions and five payment service providers with over 15,000 bank agents across Uganda.
Richard Jabel, CEO of ABC, commented that “with the introduction of Agent Banking, there has been exponential growth in the number of service points through which consumers can access and use formal financial services.”
The CEO acknowledged that the investment from Goodwell will contribute to the next phase of the company's growth, with a focus on improving services, including basic financial services accessed through mobile phones, agents, and merchants.
The investment in ABC, which will allow it to scale its operations, comes as notable payment providers enter Uganda. Flutterwave, for instance, secured a Payment Systems Operator (PSO) licence from the Bank of Uganda in August 2024, enabling businesses in the country to access its payment solutions, including single and bulk payouts to suppliers, employees, and partners. Additionally, Ugandans in the diaspora can send money to their families back home.
In May 2024, eTranzact also received an operational licence as a Payment Systems Operator and Payment Service Provider (Class A) from the Bank of Uganda, enabling it to provide digital payment platforms, mobile banking solutions, and electronic fund transfers.
Additionally, in August 2024, the Bank of Uganda granted NALA an International Money Transfer Operator (IMTO) licence, allowing the fintech to directly integrate with mobile money services.
