The financial technology (fintech) landscape in Uganda has undergone a significant transformation, with mobile money leading the charge. Richard Yego, Chief Executive Officer of MTN Mobile Money, sheds light on the platform’s exponential growth, innovative strategies, and the challenges that lie ahead in a candid interview.
MTN Mobile Money has witnessed remarkable growth in recent years, with active mobile money users increasing from 9.5 million to 13.5 million.
The number of merchants has surged from 50,000 to 400,000, while the cumulative number of agents now stands at 230,000.
Additionally, MTN’s loan disbursements have more than tripled, rising from approximately $109 million in 2022 to $326 million in 2023.
Yego highlighted the company’s ambition to build the largest and most valuable fintech platform in Uganda and across Africa.
This vision is driven by partnerships targeting various population segments and the development of innovative products and services.
MTN Mobile Money has evolved beyond basic money transfers to support digital economies. It now provides services like payments, e-commerce, lending, and remittance solutions. These efforts enable businesses and consumers to transact seamlessly, aligning with the push for cashless economies.
Yego stated, “We are at the forefront of providing consumers and businesses with innovative digital financial services. We’ve empowered businesses to receive and make payments digitally while fostering a marketplace that supports cashless and digital economies.”
The fintech industry in Uganda remains competitive, with 42 payment service providers and system operators licensed by the Bank of Uganda.
However, challenges such as cybersecurity threats, limited digital literacy, high smartphone costs, and taxation hurdles continue to impede adoption.
Yego emphasised the importance of collaboration to enhance cybersecurity and protect the ecosystem. He also called for government engagement to revise tax policies, such as the 0.5% cash withdrawal tax, which affects low-income customers.
MTN has partnered with commercial banks to deliver flexible loan solutions and collaborated with Savings and Credit Cooperative Organisations (SACCOs) to offer liquidity support. Key initiatives include:
- Education Campaigns: Digital literacy campaigns educate customers on how to use digital payment channels.
- Healthcare Solutions: The rollout of healthcare financing solutions targeting uninsured individuals.
- Agent Quality Management: Teams are assigned to empower agents to educate customers on digital services.
Additionally, MTN Mobile Money has launched the “Beera Steady” campaign to help customers identify and avoid fraud.
Leveraging 5G technology, MTN Mobile Money has enhanced its app’s capabilities for smartphone users and introduced robust fraud prevention mechanisms.
The platform uses artificial intelligence (AI) and machine learning for fraud detection and to make data-driven decisions.
Looking ahead, Yego shared the company’s growth ambitions for the next three to five years:
- Expanding active customer bases and agent networks.
- Scaling merchant adoption and advanced services.
- Strengthening payments and lending propositions for businesses and consumers.
These efforts aim to enhance MTN Mobile Money’s financial inclusion initiatives while increasing its tax contributions, which currently stand at approximately $104 million annually.
Yego remains optimistic about the future of mobile money and fintech in Uganda, stating, “We are committed to creating a secure, accessible, and efficient digital financial ecosystem to meet our customers’ evolving needs and to drive economic transformation in the country.”
