Transforming Uganda’s Economy
A groundbreaking partnership between Global Settlement Network (GSN) and Uganda’s Diacente Group is set to transform the economic landscape of the country with the launch of a $5.5 billion tokenized economy. This ambitious project aims to digitize various real-world assets managed by Diacente, including facilities in agro-processing, mining, and renewable energy production, in an effort to establish a sophisticated digital economy.
Karamoja Green Industrial and Special Economic Zone
At the heart of this initiative is the Karamoja Green Industrial and Special Economic Zone (GISEZ), which will serve as the central hub for the tokenization process, integrating physical infrastructure with digital finance.
Introduction of Central Bank Digital Currency
Furthermore, in a significant step towards modernizing its financial system, Uganda has introduced its first Central Bank Digital Currency (CBDC), a digital equivalent of the shilling that is underpinned by government bonds. This digital currency operates on GSN’s proprietary permissioned blockchain, allowing access through smartphones and USSD technology for the nation’s population of over 40 million, thereby facilitating secure and efficient digital transactions.
Regulatory Compliance and Economic Aspirations
The implementation of the CBDC is not just a technological advancement; it also aligns closely with broader economic aspirations. It adheres fully to regulatory standards, incorporating key features such as Know Your Customer (KYC) and Anti-Money Laundering (AML) practices. This initiative positions Uganda as a frontrunner among nations exploring the viability of a national CBDC.
Broader Economic Implications
The implications of this economic model extend beyond digital transactions. It is designed to fulfill Uganda’s Vision 2040 objectives, contributing to the African Union’s Agenda 2063 and the African Continental Free Trade Area (AfCFTA). It is projected that this forward-thinking partnership could establish over one million jobs while potentially boosting annual exports by as much as $10 billion.
Edgar Agaba, the Chairman of Diacente Group, emphasized that this collaboration transcends just infrastructure development. He highlighted that, “By weaving in tokenization and CBDCs into our developmental plans, we’re constructing transparent and technology-driven ecosystems that hold the potential to attract new capital, elevate local industries, and promote sustainable growth from the foundation up.”
