Mobile money accounts grow to 32 million

The Bank of Uganda has issued a license to Airtel Mobile Commerce Uganda Limited and MTN Mobile Money Uganda Limited to conduct various payments through the telecommunication based channels

What you need to know:

More than 88,000 mobile money agents have been added to the digital financial services ecosystem over the last twelve months

Mobile money accounts have reached 32.3 million, growing by an addition of 900,000 accounts.

However, according to details from Uganda Communications Commission, only 21.3 million out of the 32.3 million are deemed active.

UCC indicates only 21.3 million out of the total connections, made at least one mobile financial service transaction in the 90 days preceding September 30, 2021, which represents at least 66 percent.  However, the report does not indicate how much in mobile money transactions have been recorded in the same period.

The growth in mobile money accounts is also in tandem with the number of active mobile money agents that grew by 11 percent from 285,371 in June 2021 to 315,895 as of September 2021.

The growth reflects a sustained increase in business activity that is gradually positioning mobile money as the go to financial tool.

In comparison to 2020, agent footprint across the country has grown by 39 percent.

More than 88,000 mobile money agents have been added to the digital financial services ecosystem over the last twelve months.

The financial ecosystem has positioned mobile money as a digital financial services system tool forcing banking institutions to partner with mobile money companies to drive new markets.  Mr Wim Vanhelleputte, the MTN chief executive, recently said mobile money has enabled millions of unbanked Ugandans to get access to basic financial services, noting that the future of financial inclusion will be about people using their mobile money wallets as virtual bank accounts.

“Using mobile money will help more people have access to credit for personal and small business, and that is when financial inclusion will become a reality,” he said.

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