Goodwell Investments, a prominent impact investor with a focus on inclusive growth in emerging markets, has announced its entry into Uganda with an investment in the Agent Banking Company of Uganda Ltd (ABC). The investment, made through Goodwell’s €150 million uMunthu II fund, is aimed at expanding ABC's agent banking system, which plays a critical role in increasing financial inclusion in Uganda.

Investment to Boost ABC's Growth

ABC, established in 2017 through a collaboration between the Uganda Bankers' Association (UBA) and technology firm Eclectics International Ltd, operates a shared agent banking platform that allows local shopkeepers and kiosk owners to act as authorized bank agents. These agents provide essential financial services such as cash deposits, withdrawals, and payments, making financial access easier for Uganda's underserved communities.

With this new capital injection, ABC will be able to scale its operations significantly, including expanding its client base, increasing its network of over 15,000 agents, and introducing new services to its platform. The investment in ABC aligns with Goodwell’s broader mission of advancing financial inclusion across Africa by leveraging technology and local infrastructure.

Addressing Financial Inclusion Gaps in Uganda

Despite improvements over the past decade, access to financial services remains a challenge in Uganda and across Africa. According to World Bank statistics, as of 2021, 45% of Sub-Saharan Africans aged 15 and older were still unbanked. Goodwell’s investment comes at a crucial time, as the demand for formal financial services continues to grow. By supporting the expansion of agent banking, the partnership between Goodwell and ABC aims to bring banking services closer to rural and underserved populations in Uganda.

Commenting on the development, Richard Jabel, CEO of ABC, stated: “Our business was established to address a very real need to expand the reach and improve access to quality and affordable financial services in Uganda. This investment from Goodwell will be instrumental in the next phase of our growth, as we enrich our service range and remove financial exclusion barriers across the country.”

Goodwell’s Strategic Focus on Financial Inclusion

Goodwell Investments is no stranger to the financial inclusion space. The firm has been active in Africa and India for two decades, focusing on early-stage investments in high-growth companies that provide essential services to underserved communities. The uMunthu II fund, which was used for the ABC investment, targets sectors such as financial services, food and agriculture, and mobility, all with an emphasis on driving both social impact and financial returns.

With teams located in key African markets including Kenya, Nigeria, and South Africa, Goodwell's investment portfolio includes a wide range of businesses committed to closing the financial inclusion gap. The firm’s entry into Uganda through its support of ABC underscores its commitment to fostering sustainable economic growth in frontier markets.

Sector Competition Heats Up

Goodwell’s move into Uganda’s financial services sector comes amid increasing competition. The entry of prominent payment service providers such as Flutterwave and eTranzact into the market highlights the growing demand for digital financial solutions. These companies have been making headway with licenses from the Bank of Uganda to operate as Payment Systems Operators (PSOs), facilitating smoother transactions for both businesses and consumers.

ABC’s ability to expand its agent network and roll out additional financial services will allow it to compete effectively in this evolving landscape, particularly as more fintech companies enter the Ugandan market.

A Promising Future for Financial Inclusion

The collaboration between Goodwell and ABC signals a positive development for the financial services ecosystem in Uganda. By expanding the reach of agent banking and introducing new services, the investment has the potential to uplift millions of Ugandans who currently lack access to formal financial systems.

Goodwell’s strategic investment in ABC marks a significant step toward enhancing financial inclusion in Uganda. By expanding its agent banking network and leveraging technology to deliver essential financial services to underserved communities, ABC is well-positioned to transform the country's financial services landscape. As more investors and companies focus on building inclusive financial systems, Uganda's financial sector is set for accelerated growth.