Uganda’s agent banking network recorded a sharp increase in transaction value in the year to March 2026, surging by 65.2 percent to Shs41.3 trillion, underscoring the growing role of agency banking in expanding access to financial services across the country.
According to the Ministry of Finance, Planning and Economic Development’s July 2026 Microeconomic Indicators and Developments (MIND) report, the value of transactions conducted through agent banking networks rose from Shs25 trillion in March 2025 to Shs41.3 trillion in March 2026. The number of transactions also increased by 37 percent, rising from 10.9 million to 15 million over the same period.
The ministry attributed the growth largely to increased activity in float purchases and cash deposits, reflecting sustained demand for cash-in and cash-out services through agent banking outlets. The expansion further underscores the role of agent banking in bringing basic financial services closer to households and businesses, particularly customers who may not have easy access to conventional bank branches.
This rapid growth aligns with Uganda’s broader financial inclusion strategy, which has seen a significant expansion of agent networks across the country. By providing convenient access to services such as deposits, withdrawals, and bill payments, these agents are acting as a critical bridge for the unbanked and underbanked populations.
Beyond the financial services sector, the latest economic indicators showed mixed developments across Uganda’s economy:
Stock Market Performance: At the Uganda Securities Exchange, the All Share Index rose by four percent to 2,141.28 in July, pointing to improved performance among listed companies and stronger activity in the domestic capital market.
- Increased Investment: Gross fixed capital formation rose by 1.4 percent to Shs14.459 trillion during the 2025/26 financial year, indicating the economy’s capacity for future production.
- Energy Costs: Electricity tariffs for extra-large industrial consumers increased by two percent in July to Shs207.7 per kilowatt-hour, potentially adding to production costs and putting pressure on operating margins.
- Air Quality Deterioration: Particulate matter pollution increased by 42 percent, rising from 37.7 micrograms per cubic metre in June to 53.4 micrograms per cubic metre in July, attributed to dry and dusty weather conditions.
- Labour Market Disruption: No migrant workers were officially registered in July after Saudi Arabia, the United Arab Emirates, Qatar and Kuwait imposed travel restrictions on travellers from Uganda following the Ebola outbreak.
On the consumer side, food and non-alcoholic beverage prices recorded a modest decline in July. Monthly inflation for food and non-alcoholic beverages fell by 0.5 percent, driven mainly by lower monthly food inflation. The moderation in food prices could provide some relief to households and businesses, given the significant influence of food costs on household spending and overall inflation.
Health indicators recorded an improvement in malaria-related mortality, which declined by 43 percent in July. Malaria-related deaths fell from 2.3 deaths per 1,000 people in June to 1.3 deaths per 1,000 people in July.
Overall, the July indicators present a mixed picture of Uganda’s economic performance, with strong growth in agent banking transactions, improved securities market activity, and increased investment pointing to continued expansion in parts of the economy. At the same time, higher industrial electricity costs, weaker international commodity prices, and deteriorating urban air quality remain concerns.
The sharp rise in agent banking activity nevertheless stands out as one of the strongest indicators of the changing financial services landscape, as more Ugandans use accessible community-based channels to conduct everyday financial transactions.
