Uganda’s $5.5B Digital Economy Initiative with CBDC Pilot

Uganda initiates a $5.5 billion partnership with Diacente Group and Global Settlement Network to launch a pilot program for its central bank digital currency (CBDC), the digital shilling. This transformative project aims to tokenize assets, enhance financial accessibility, and boost technological innovation, propelling Uganda towards economic advancement.

17 October 2025 | 20:58

In a groundbreaking move poised to transform its financial landscape, Uganda has launched a pilot program for its central bank digital currency (CBDC) as part of a massive $5.5 billion partnership with Diacente Group and Global Settlement Network. This step aims to tokenize real assets, enhance financial accessibility, and embed technological innovation into the heart of Uganda’s economy.

A Game-Changing Partnership

The ambitious initiative sees the collaboration between Diacente Group, a local developer specializing in green industrial zones, and the US-based Global Settlement Network. Designed to revolutionize Uganda’s financial infrastructure, the project will connect farms, mining operations, solar plants, and factories, fundamentally altering how these sectors operate. Starting with the Karamoja Green Industrial and Special Economic Zone (GISEZ), the initiative seeks to integrate technology with actual production capabilities while ensuring local control and licensing.

Ryan Kirkley, a leading voice in the project, emphasizes its overarching goals, stating, “The project links technology with real production and ensures local licensing and control.” This partnership is not just a financial investment; it’s a strategic push to reduce reliance on intermediaries and foster a more transparent economic environment across Uganda.

Unveiling the Digital Shilling

The centerpiece of this initiative is Uganda’s first CBDC, known as the digital shilling. This digital currency, which operates on a permissioned blockchain and is backed by government treasury bonds, aims to simplify and secure transactions for over 40 million Ugandans. Accessible via smartphones and even basic mobile devices using USSD technology, the digital shilling is set to usher in a new era of accessibility and convenience in financial transactions.

Highlighting the innovative nature of the CBDC initiative, Kirkley asserts, “We’re building infrastructure that goes beyond theory; a programmable economy grounded in real assets, regulatory collaboration, and mass accessibility.” By integrating robust regulatory frameworks, including Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, the digital shilling aims to provide a safe and transparent financial ecosystem.

Economic Ripple Effects

The economic implications of this undertaking are profound, with officials forecasting the creation of over one million jobs and the potential to generate up to $10 billion in annual exports. This initiative aligns seamlessly with Uganda’s Vision 2040 and the African Union’s Agenda 2063, aiming to establish the nation as a beacon for technological and economic advancement in East Africa.

Odongo Solomon, CEO of Diacente Group, encapsulated the initiative’s potential by stating, “By integrating tokenization and CBDCs into Uganda’s development roadmap, we’re creating transparent, tech-driven ecosystems that attract new capital, empower local industries, and scale sustainable growth from the ground up.” This development not only promotes economic growth but also paves the way for a more inclusive financial future.

Navigating Challenges

Despite the promising outlook, the rollout of the CBDC is not without its challenges. The project will first launch at the Karamoja GISEZ, facing hurdles like mobile phone adoption rates and digital literacy. In Uganda, only 65% of adults have formal banking services, highlighting a significant gap in financial accessibility.

Deputy Governor Augustus Nuwagaba underscores the urgent need for change, noting, “Our highest cost is printing money… most of you don’t even know how to handle money.” Addressing these gaps is not merely an economic imperative; it’s essential for empowering Ugandans and ensuring they can participate in the digital economy.

A Vision for the Future

As Uganda ventures into the digital finance landscape, the initiative stands alongside similar CBDC projects in Nigeria, Ghana, and South Africa, positioning the country strategically within the African digital economy. Uganda aims to be a regional hub for tokenized finance, leveraging its agricultural, mining, and renewable energy sectors to attract investment and innovation.

As countries across Africa explore digital currencies, Uganda’s approach, with its focus on integrating real-world assets and ensuring regulatory compliance, offers a blueprint for other nations. The collaborative efforts in tokenization and economic growth could set a new standard, fostering synergy between traditional practices and modern financial systems across the continent.

Embracing the Digital Future

Uganda’s $5.5 billion digital economy initiative signals a significant shift towards a more technologically integrated and inclusive future. By embracing the digital shilling and the opportunities presented by tokenization, Uganda stands not only to revolutionize its economy but also to set an example for the region. As these changes unfold, the world will be watching closely—witnessing a pivotal moment in Uganda’s journey towards sustainable economic development.