Exim Bank Uganda Limited has launched Exim Global Pay, a new cross-border payment platform powered by TerraPay’s global financial infrastructure. The platform allows individuals and businesses across Uganda to execute international transactions seamlessly. By integrating directly into TerraPay’s network, financial institutions eliminate the technical complexity and high expenses associated with building multiple bilateral routing systems. While cross-border payment platforms exist in the region, bank officials emphasize that Exim Global Pay offers enhanced security features, faster transaction clearing, and improved convenience.
Private sector leaders view the platform as a significant driver for cross-border trade, which generates between $2.2 billion and $2.5 billion annually according to Bank of Uganda estimates. The system also supports international remittances from Ugandans working abroad. Ministry of Finance data indicates that overseas Ugandans sent home nearly $3 billion in the last financial year, representing a growth of nearly $2 billion compared to the previous period. Remittances remain a central source of foreign exchange, investment capital, and household revenue in Uganda, reinforcing the demand for reliable digital financial architecture. Connecting local banking networks to international corridors directly aligns with the digital inclusion objectives outlined in the National Development Plan framework.
Despite the economic benefits of digital financial channels, transaction costs remain a key hurdle for widespread consumer adoption. Market players acknowledge that the investment required to build and deploy digital infrastructure is frequently passed down to end users. Speaking at the launch event in Kampala, Francis Mulero, Head of Personal and Business Banking at Exim Bank Uganda, noted that high transfer charges limit the uptake of financial tech products. To address this issue, the institution adjusted its pricing model for individual corridors to maintain lower rates. Industry experts note that overall transfer fees exceeding $15 create significant barriers to mass adoption.
Hidden charges within international money transfer networks present an additional challenge for consumers. Samuel Muyingo, Country Manager for TerraPay in Uganda and regional lead for East and Southern Africa, explained that unaccounted charges reduce the final amount received by recipients, disrupting international trade transactions. He noted that under TerraPay’s infrastructure model, transaction fees are transparently disclosed upfront, ensuring that recipients receive the exact amount sent without intermediary deductions.
High costs continue to affect local technology adoption patterns across the country. A mini-survey conducted across Kampala’s five divisions by Business Weekend Outlook revealed that nine out of ten respondents avoid using digital innovations due to high operational fees, despite recognizing their utility. Research by the Economic Policy Research Centre confirms that substantial upfront fees generate a dual burden of high costs and digital exclusion for Ugandan households.
These cost challenges are further complicated by network disruptions caused by power grid instability and national internet shutdowns, which temporarily freeze mobile money and electronic banking services. Financial institutions and tech providers face ongoing pressure to deliver scalable infrastructure that remains affordable for everyday consumers.