Business 21 September 2026 Daily Monitor (Uganda)
Uganda Explores National Payment Switch with India's Digital Expertise
President Museveni met with the outgoing Indian High Commissioner to discuss strengthening bilateral cooperation in technology, including the development of a National Payment Switch, as Uganda aims to overhaul its digital payment ecosystem. Source: https://www.monitor.co.ug/uganda/news/national/museveni-bids-farewell-to-indian-envoy-as-uganda-moves-to-overhaul-payment-ecosystem-5603662
President Yoweri Museveni has bid farewell to the outgoing Indian High Commissioner to Uganda, H.E. Upender Singh Rawat, at State House Entebbe. The meeting highlighted ongoing strategic partnerships between Uganda and India, with a particular focus on technology transfer and the potential development of a National Payment Switch.
Discussions also touched upon the progress of the National Forensic Sciences University in Jinja, an initiative established through cooperation with India. President Museveni expressed his appreciation for Mr. Rawat’s contributions to deepening bilateral relations and wished him well in his future endeavors.
The potential establishment of a National Payment Switch comes at a critical juncture for Uganda’s burgeoning digital economy. While mobile money services have significantly increased financial access, the current system is hampered by high cross-network transaction fees and cash-out charges, creating silos within the financial landscape.
Financial experts suggest that Uganda could benefit from adopting principles similar to India’s Unified Payments Interface (UPI). UPI has revolutionized digital transactions in India, facilitating billions of transactions monthly through its interoperable architecture that connects numerous banks and consumer platforms.
However, adapting such a system to Uganda’s context requires addressing specific challenges, including lower formal bank account ownership and varying levels of internet penetration. A successful Ugandan model would need to integrate QR code standards with USSD protocols to accommodate users across different device types and ensure affordability through carefully designed pricing strategies.
By creating an open and interoperable payment architecture, Uganda can move towards a low-cost, cash-lite trading environment, fostering greater financial inclusion for its citizens. India’s UPI model has already seen international expansion, offering a potential blueprint for Uganda’s financial modernization.