Ugandan financial regulator is working to boost Fintech innovation in the country. On Tuesday, the Bank of Uganda (BoU) officially unveiled a regulatory sandbox to help Fintechs develop new products and services. The Bank of Uganda, the country’s financial sector regulator, said it will provide oversight and the necessary safeguards to enable startups to create innovative financial solutions in a live controlled environment.
Uganda’s financial technology firm, M/s Wave Transfer Limited, is the first company to be admitted into the regulatory sandbox. The company received BoU’s approval to operate under the “Regulatory Sandbox Framework” on 12th April 2021. M/s Wave Transfer is testing its Quick Response (QR) technology under the controlled environment.
“Bank of Uganda invites more firms to develop and test financial innovations under the regulatory sandbox,” the bank said.
Uganda aims to promote financial innovation and attract funding for Fintech startups in the country through the regulatory sandbox. The nation also sees this program as a learning opportunity for innovators and regulators. Additionally, the country expects to boost the uptake of electronic payments, digital financial services, and to promote financial inclusion in the East African nation.
Kenya is a leader in the financial innovation space in East Africa. In March 2019, the country launched its regulatory sandbox with the goal of promoting technological innovation in the capital markets. The sandbox has admitted 7 companies since its launch. Kenya’s Capital Markets Authority (CMA) has taken additional measures to unlock the potential of the Fintech space by signing agreements with well-established authorities like the Australia Securities and Investments Commission and the Abu Dhabi Global Markets (ADGM) Financial Services Regulatory Authority.