Uganda in The Age of Mobile Money – Equity Bank Report


Courtesy of a report, done by Equity Bank, made available to Tekedia , we are happy to provide where Uganda stands today:


  • Three telecoms are engaged in MM services in Uganda since Q1 2009
  • Approx. 1.5Mn subscribers since inception with > 1000 transaction points countrywide
  • Ugx. 3Bn transferred per month


Market status

  • Population of 33M; 9M registered mobile subscribers – 27%
  1. Banking penetration (5M bank account holders) – 15%
  • Bankable population: 18M
  • Young Population; 80% employed in non-formal sector
  • Purchasing Parity – $1,300 (Est)
  • 90% of existing money transfer agent revenues from international transfer

services; local transfers are hugely untapped

  • 3 existing Mobile Money products not providing full banking services
  • No inclusion of MM subscribers to the regulated financial sector


Market Requirement

  • Mobile Money Agent outlets do not have sufficient float – multiple visits

required to replenish

  • Higher thresholds– Ugx 1,000,000 too low for businesses
  • Need lower cost micro payment – existing money transfer services too costly
  • Combination of benefits of mobile money with those of normal account (egcash through ATM/branches, transaction history)



Current challenges of m-money

  • Financial dis-intermediation is occurring
  • Responsibility of reconciliation abdicated by e-money issuers
  • Transaction costs are too high for majority of transactions (Rule of 2%)
  • Closed loops hold back overall growth
  • KYC requirements are restrictive at levels of low risk

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