Mastercard Launches Office In Uganda

Mastercard has taken a decisive step to strengthen its footprint in East Africa by opening its first office in Uganda’s capital, Kampala. This development comes as the country accelerates its digital transformation agenda under the ambitious ‘Digital Uganda Vision’.

Uganda, with its economy projected to grow by 6.2% by 2025, has emerged as a key player in the East African economic landscape. By establishing a physical presence in Kampala, Mastercard aims to collaborate more closely with local stakeholders to develop solutions tailored to the unique challenges and opportunities within the Ugandan market.

“Mastercard has a long-standing commitment to Africa, and the opening of our office in Uganda reinforces our dedication to this vibrant market. By being on the ground, we can better collaborate and drive the adoption of digital payment solutions that promote economic growth and financial inclusion,” said Mark Elliott, Division President for Africa at Mastercard.

This milestone builds on a February 2024 partnership with Uganda’s Ministry of ICT & National Guidance. At that time, Mastercard signed a Memorandum of Understanding (MoU) to accelerate Uganda’s digital transformation under the ‘Digital Uganda Vision.’

The MoU outlined plans to accelerate digital transformation across various sectors, including e-commerce and government services, while focusing on financial inclusion for underserved communities. At the time, Victor Ndlovu, Mastercard’s Director and Business Development Lead for East Africa, described the partnership as a commitment to “unlocking the potential of a digital Uganda.”

Under the agreement, Mastercard pledged to provide technical expertise to modernize Uganda’s payments ecosystem, enabling small businesses to integrate into the digital economy. This includes offering tools for micro-merchants to accept electronic payments, potentially widening their market reach and boosting economic participation.

The establishment of the Kampala office strengthens Mastercard’s ability to implement these plans on the ground. Shehryar Ali, Mastercard’s Senior Vice President and Country Manager for East Africa, emphasized the importance of direct engagement, “Uganda presents immense opportunities for digital innovation. Our new office aims to serve as a hub for developing and implementing payment solutions that cater to the evolving needs of Ugandan consumers and businesses.”

Before establishing its office in Uganda, Mastercard operated through third-party partnerships, primarily collaborating with local financial institutions, telecom providers, and fintech companies. These partnerships allowed Mastercard to offer its services indirectly, leveraging the existing networks and infrastructure of its local partners.

In 2022, Mastercard was granted a Payment System Operator (PSO) License by the Bank of Uganda, under the National Payment Systems Act 2020. The PSO license allowed Mastercard to streamline domestic transactions while ensuring compliance with local financial regulations. However, these activities were still coordinated regionally, primarily through its offices in neighboring countries like Kenya.

Ali also noted Mastercard’s ongoing collaborations with fintechs and other stakeholders to advance digital inclusion efforts in the region. This national strategy aims to improve access to services in areas such as education, healthcare, and agriculture through digital technology.

Hon. Dr. Chris Baryomunsi, Uganda’s Minister of ICT & National Guidance, highlighted this during the February 2024 MoU signing, “This collaboration with Mastercard is a significant leap towards achieving the Digital Uganda Vision. Together, we are laying the foundation for a future where every Ugandan, regardless of where they are located, can access essential services with ease and security, driving not just financial inclusion but also socio-economic development across the country.”

Mastercard’s ongoing efforts in Uganda include initiatives like the Community Pass Customer Summit and collaborations with the Uganda Bankers Association to drive financial advancement.

The Kampala office joins Mastercard’s network of regional offices in key African cities, including Nairobi, Lagos, Cairo, Casablanca, Port Louis, Accra and Johannesburg. These offices form part of a broader strategy to expand its presence on the continent, which remains a focal point for its financial inclusion efforts.