Diacente Group, a Ugandan enterprise specializing in the development of eco-friendly industrial zones, has joined forces with the US-based Global Settlement Network (GSN) to launch an ambitious $5.5 billion initiative. This project aims to establish a comprehensive national digital infrastructure that seamlessly connects Uganda’s agricultural sectors, mining operations, energy projects, and manufacturing facilities.
Central to this initiative is the introduction of Uganda’s inaugural central bank digital currency (CBDC), the digital shilling, which will be secured by treasury bonds. This digital currency is designed to empower millions of Ugandans by enabling them to conveniently send, receive, and store money via mobile devices, while directly linking financial transactions to tangible economic activities.
Funding for this $5.5 billion venture will be sourced through tokenized lending mechanisms and investments from stakeholders in Korea and the Middle East. Given that over 80% of Uganda’s labor force is engaged in informal economic activities, this digital framework promises to streamline commerce by making it more efficient, cost-effective, and transparent.
Ryan Kirkley, GSN’s co-founder and CEO, emphasized the project’s practical focus: “Our goal is to create infrastructure that transcends theoretical models-a programmable economy anchored in real-world assets, regulatory cooperation, and broad accessibility.”
The GSN platform prioritizes user security and ensures Uganda retains sovereignty over its digital infrastructure. Utilizing cutting-edge privacy technologies, the system safeguards every transaction, even for users with basic mobile phones, according to Kirkley.
Moreover, the technology will be governed by Ugandan authorities and local institutions, with licensing arrangements that keep all operations within Uganda and the broader East African region.
The initial deployment will take place in the Karamoja Green Industrial and Special Economic Zone (GISEZ), a government-endorsed development area aligned with Uganda’s Vision 2040. This vision aims to industrialize the nation, expand the economy to $500 billion, and enhance regional trade through improved infrastructure and digital connectivity. The zone is projected to generate over one million jobs spanning agriculture, mining, and manufacturing, while serving as the testing ground for the digital currency and its associated services.
Edgar Agaba, chairman of Diacente Group, highlighted the broader impact: “This initiative is more than just infrastructure; it’s about unlocking sustainable value for our communities and region. By embedding tokenization and digital currency into Uganda’s growth strategy, we are fostering transparent, tech-driven ecosystems that empower local industries and attract responsible investment.”
The digital backbone will operate on GSN’s blockchain network, enabling Uganda to maintain control over its digital assets while facilitating integration with global and regional markets.
Building on Uganda’s widespread mobile money adoption, the digital shilling CBDC will utilize the familiar USSD technology employed by MTN MoMo and Airtel Money, ensuring accessibility even for users with the simplest mobile devices.
Kirkley noted that this project learns from past challenges faced by other African digital currencies, such as Nigeria’s eNaira, which struggled with user uptake.
“Earlier attempts faltered because they lacked real-world application,” Kirkley explained. “Our approach starts with industries, jobs, and production, giving people a genuine reason to engage with the system.”
For example, farmers supplying produce to agro-processing centers within the zone could receive immediate payments. Merchants transporting goods across regions would be able to settle transactions securely via mobile phones. Small enterprises operating in the zone could establish creditworthiness and access loans based on verified digital records.
The overarching objective is to enable Uganda to retain greater economic value from its existing production. Currently, many transactions in agriculture, mining, and commerce depend on foreign payment systems, which add costs and delays. A domestically anchored digital network could help keep more wealth circulating within the local economy.
This initiative will also stimulate employment in Karamoja, a resource-abundant yet underdeveloped area targeted by the government for fresh investments, as detailed here. The digital platform will integrate farming, processing, and logistics into a unified digital ecosystem.
Peter Turyasingura, Diacente’s chief investment officer, elaborated: “Job creation will span the entire value chain-from agriculture and mining to manufacturing and logistics-supporting a comprehensive ecosystem within the industrial zones.”
GSN projects that, over time, this initiative could extend formal financial services to more than 60 million individuals across East Africa.
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