Goodwell enters the Ugandan market with investment in the Agent Banking of Company Uganda Ltd (ABC)
ABC’s Shared Agent Banking System is a key driver of financial inclusion
AMSTERDAM, THE NETHERLANDS, 19 September 2024 – Goodwell Investments, an impact investor financing inclusive growth in emerging markets, is pleased to announce its investment in the Agent Banking Company of Uganda, Ltd (ABC), a technology-focused financial services firm with a mission to “improve lives by facilitating access to quality and affordable financial services”.
Goodwell invested in ABC through uMunthu II, its EUR 150 million fund providing venture capital to impact-driven companies throughout Africa. The funding will enable ABC to pursue ambitious goals for growth, including expanding its client base, increasing agent coverage, and deploying new services. While the investment in ABC marks Goodwell’s entry into Uganda, in terms of the sector focus – financial inclusion – the investment firm is treading on very familiar ground.
Despite significant progress in the past decade, financial inclusion is still a major concern across the African continent. According to the World Bank, 45% of sub-Saharan Africans aged 15 and over were unbanked in 2021. One of the most effective ways to improve access to formal financial services is by bringing services closer to customers through a network of bank agents – local shopkeepers and kiosk owners authorised to carry out cash withdrawals, deposits, and other fundamental transactions.
ABC’s platform provides the underlying technology that powers these interconnected agent networks, enabling them to work directly with supervised financial institutions and local customers. The company was founded in 2017, when the Uganda Bankers’ Association (UBA), the umbrella organisation for financial institutions licensed and supervised by Bank of Uganda and technology company Eclectics International Ltd joined forces in response to the Financial Institutions (Amendment) Act 2016 that introduced Agent Banking, aimed at improving financial inclusion in Uganda.
When asked about the ABC’s achievements and ambitions, CEO Richard Jabel commented, “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. 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 offered by over 15,000 authorised bank agents. This has made it much easier and enabled the previously underserved communities to enjoy a range of formal financial services across the country. The investment from Goodwell will be instrumental in the next phase of our growth, as we enrich our service range to encompass the full suite of basic financial services to be accessed through mobile phones, agents and merchants. We look forward to working with Goodwell as we continue to improve livelihoods and remove financial exclusion barriers through the transformation of the financial services landscape in Uganda.”
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Note to the editor
For additional information and interview requests, please contact:
Liz Keel, Marketing Communications Manager, Goodwell Investments B.V.
Patricia Amito, Head Communications and Corporate Affairs, Uganda Bankers’ Association
patriciaamito@ugandabankers.org
About Goodwell Investments
Goodwell Investments is a pioneering impact investment firm focused on inclusive growth in sectors providing basic goods and services and income generation opportunities to underserved communities in Africa and India. The firm provides early-stage equity to high growth, high impact businesses. With teams in Kenya, Nigeria, South Africa and the Netherlands and a twenty-year track record, Goodwell demonstrates the ability to simultaneously deliver significant social impact and strong financial returns. Since 2009, Goodwell has partnered with Alitheia Capital to identify and manage investments in West Africa, including uMunthu II – Goodwell’s latest EUR 150 million fund.
Learn more at www.goodwell.nl
About Agent Banking Company Ltd
Established in 2017 by the Uganda Bankers’ Association (UBA) the umbrella body of all financial institutions licensed and supervised by the Central Bank of Uganda, the Agent Banking Company is licensed by the Bank of Uganda (BOU) as a Payments System Operator. ABC company focuses on increasing access and use of a wide range of quality, secure and affordable financial services by underserved communities in Uganda through its shared and interoperable digital platforms. The company enables multiple bank and non-bank financial services providers to provide financial services to consumers through authorised bank agents and currently serves 18 supervised financial institutions and 5 payments services providers with over 15,000 bank agents across Uganda.
Learn more at www.agentbanking.co.ug