World Bank: more Ugandans turn to phones for loans

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In Uganda, sending money no longer requires a trip to the bank. It can happen in seconds, through a phone, often in places where banks have never existed.

This shift is part of a broader transformation captured in The Global Findex Database 2025, which shows how digital finance is reshaping economies across Sub-Saharan Africa, and Uganda is firmly at the centre of that change.

One of the most telling indicators is borrowing. In Uganda, along with countries like Kenya and Ghana, “more than 20% of adults have borrowed money through mobile platforms.” That marks a significant shift: phones are no longer just tools for payments; they are becoming sources of credit.

For many Ugandans, especially in rural and informal settings, mobile money has become the backbone of financial life. Agent networks and digital wallets allow people to save small amounts, send money, and manage daily transactions without relying on traditional banks.

Digital payments are also becoming more common. Across developing economies, 61% of adults are now using digital payments, and Uganda reflects this trend through peer-to-peer transfers, small business transactions, and growing digital adoption in everyday life.

But the system is still evolving. Agricultural payments, which form a large part of Uganda’s economy, remain largely cash-based. This represents both a gap and an opportunity, one that could bring more farmers into the digital financial system.

At the same time, access is not universal. The cost of smartphones and internet connectivity continues to exclude many people, particularly in rural areas. Financial literacy and trust also vary, affecting how confidently people use digital services.

Even among users, borrowing patterns reveal a hybrid system. While mobile lending is growing, many people still rely on informal sources such as family and friends. This reflects a broader reality: digital finance is expanding, but it has not replaced traditional support networks.

Saving behaviour is also changing. Around 40% of adults in developing economies now save formally, often through mobile platforms that allow small, frequent deposits. In Africa, these mobile accounts are often used more actively than traditional bank accounts.

Yet financial vulnerability remains.

Only about 56% of adults globally can access emergency funds easily, and Uganda is no exception. Many households still struggle to absorb financial shocks, whether from health costs, education expenses, or income disruptions.

What Uganda’s story reveals is not just progress, but complexity. Digital finance is opening doors—creating access, convenience, and new forms of economic participation. But it is also exposing new challenges around inequality, trust, and resilience.