Finding people with the skills to develop and navigate through different software remains a big challenge, a factor that is holding back the growth of information, communication and technology in Uganda, it has emerged.
A new study, which was sponsored by the Agricultural Business Initiative (aBi), found that skills such as software and development of internet apps, infrastructure, cybersecurity, data science, machine learning, cognitive computing, design, marketing, and regulatory and risk management, arguably the most sought-after in the discipline of ICT, are also the most difficult to find amongst the emerging financial technologies (FinTech) subsector.
Part of the reason for this dearth in skills, some players say, is down to limited funding to the sector. Mabel Ndawula, a director at Deloitte (Uganda) Limited, stated that 57 per cent of the fintechs were self-funded with minimal investment coming in from other sources of funding such as venture capital, private equity, grants and government support.
"Fintechs have had limited success in linkages between their products and services to other traditional incumbents because of the various barriers in place that inhibit their communication with services already in place. The lack of funding and the goodwill from traditional players to make this happen is also not helping much," Ndawula, who was speaking at the launch of the study, said. The Bill and Melinda Gates Foundation, and Bank of Uganda, also supported the compilation of the study, which is titled State of Uganda's Fintech Industry. Deloitte Uganda conducted the study.
The Financial Technology Service Providers Association (FITSPA), the body that commissioned this study, has been in existence for slightly under five years. This is the first baseline study to fully understand the magnitude of fintechs in Uganda.
Joyce Ssebugwawo, the state minister for ICT, lauded aBi for partnering with the government of Uganda to show the extent of the proliferation of ICTs intended to make the life of ordinary Ugandans better. She also said the government was willing to consider and adopt the findings from the study.
"There are numerous opportunities that can be explored by the private sector with support from the government of Uganda. ICT is a great enabler in the attainment of these goals that all sectors need to make use of. But the advent of the sector needs to be approached with caution as a number of the policies and regulations needed to make this possible are still being developed," she added.
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aBi Financial Holdings, which injected more than Shs 60 million into making this study possible, is also involved in creating linkages between smallholder farmers, a majority of whom make up the unbanked, and markets and other amenities meant to extend services to make agriculture a viable business.
Mona Muguma-Ssebuliba, the chief executive officer of aBi Financial Holdings, said: "An increase in the number of smallholder farmers and agribusiness access to serviceable financial services is what aBi is all about and we shall continue working towards that end with all like-minded partners until this desire is fully achieved."
Michael Atingi-Ego, the deputy governor of the Bank of Uganda, commended the Financial Technology Service Providers Association (FITSPA), for conducting the study.
"The report may be seen for benchmarking Uganda's abilities in this sector. This report also highlights the gaps and challenges that need to be plugged. Fintechs have helped banks reduce their brick-and-mortar footprint without reducing the numbers of the banked.
"The process of opening up a bank account has been a burdensome one. But with the advent of fintechs, the banks have been pushed into action for fear of losing their customers to the more responsive and growing fintechs. As a central banker, we are here to ensure that the deposits of customers are protected as well as their personal data," he said.
