Assessing new testing grounds for online money safety in Uganda

This research critically examines Uganda's regulatory sandboxes in mobile money services, comparing them with frameworks in Kenya and the United Kingdom (UK). Regulatory sandboxes play a crucial role in fostering innovation while managing digital financial risks, particularly those posed by foreign information and communication technology (ICT) service providers. However, previous studies have not adequately addressed the alignment of Uganda’s sandboxes with international standards and the specific risks associated with foreign operators. This research aims to determine how Uganda’s regulatory sandboxes align with global practices, assess digital financial risks, and suggest risk mitigation strategies. Using a qualitative approach that includes comparative analysis, the research explores coordination between national and regional legal frameworks. The findings reveal that Uganda’s regulatory sandbox framework is less developed in cross-border testing and lacks comprehensive consumer protection measures seen in Kenya and the UK. The research highlights the need for improved regulatory coordination and integration of best practices to improve the resilience of Uganda's financial sector. This research provides valuable information on the refinement of Uganda's regulatory framework, highlighting the importance of harmonised regulations that support innovation and ensure data security, thus improving consumer confidence and service continuity in the digital financial landscape.