Bank of Uganda Launches Regulatory Sandbox Regime for Fintech Startups
The Bank of Uganda (BOU) has announced creating a Regulatory Sandbox Framework that allows Fintech startups to test their innovative financial products in a safe environment.
Prof. Tumusiime-Mutebile, Governor of The BOU, said that the program aims to develop and test their financial innovations in this framework. He further explained that the program will carry out a suitable examination on all applicants and shareholders.
“The Regulatory Sandbox Framework will encourage financial services innovation, attract capital and support for Fintech businesses, and allow innovators and regulators to learn from one another. This is intended to increase the use of electronic payments, digital financial services, and overall financial inclusion.
“A fit and suitable examination on each major shareholder, director, or management of the application. The central bank would also look at whether an applicant fits the criteria and basic conditions for operating a sandbox”.
According to the statutory document, part of the factors that will be evaluated by the BOU include whether the invention is real or if the sandbox offers consumer advantages and protections. The preparedness of the sandbox for testing, as well as the suitability of the exit strategy, amongst others, will be taken into account by the central bank.
Fintech startups interested in being included in the regulatory sandbox framework must pay a $290 application fee (one million Ugandan shillings).
M/S Wave Transfer Limited has already been granted permission to use this sandbox to test its rapid response (QR) technology.