Uganda is making a big leap towards digitalization by planning to roll out an Aadhaar-like identification system and looking at India’s Unified Payments Interface (UPI) to transform digital payments. The decision is part of a larger trend among African countries to embrace tried-and-tested Indian technology to improve governance and financial inclusion.
The East African state is implementing the Modular Open-Source Identity Platform (MOSIP), a technology created by the International Institute of Information Technology, Bengaluru (IIIT-B). Uganda National Identification and Registration Authority (NIRA) CEO Rosemary Kisembo confirmed the development and noted the platform’s flexibility.
“We have had an immense year of interactions. We’ve had IIIT B (International Institute of Information Technology, Bengaluru) on speed dial, working towards understanding the platform. But more importantly, customizing it to the law of the land. And it has been a very enriching, very enriching experience. It has been a very enriching experience, one that we look forward to deepening across sectors and communities,” Kisembo said.
The system will be rolled out in five modules, addressing new registrations, renewals, correction of errors, replacement of IDs, and issuance of IDs for the first time. The pilot is already underway, and in the next few months, Uganda will connect its ID system with essential records like birth and death certificates.
Kisembo further added, “The immediate benefit of UPI will be a reduction in the cost of transactions. It creates a free wallet for every citizen, enabling seamless money movement.”
Uganda Also Plans to Explore UPI for Affordable Transactions
In addition to the digital ID system, Uganda is also exploring India’s UPI (Unified Payments Interface) to develop a low-cost, seamless digital payments infrastructure. This is a big shift in Uganda’s financial technology plans.
The UPI system presents an immediate benefit of decreasing transaction costs and financial access, according to Kisembo. “The direct advantage of UPI will be a decrease in the cost of transactions. It provides a free wallet for each citizen and facilitates ease of money movement,” she said.
India’s UPI has already received worldwide acclaim for its zero-cost, real-time digital payment system. Now, Uganda’s interest further underscores the increasing cross-border uptake of Indian digital systems.
As it enters its digital era, Uganda’s partnership with India not only marks a significant milestone but also presents a strong model for South-South cooperation in technology and governance.
