Uganda’s mobile money transaction has hit 253.7 trillion mark according to Bank of Uganda.
According to BOU Annual Report for Financial Year 2023/2024,mobile money significantly increased by 31.5 from UGX192.9 trillion in the twelve months ending June 2023 to sh 253.7trillion in the year to June 2024.
Similarly, the volumes increased by 22.8 percent from 5.7 billion transactions to 7 billion transactions during the same period.
According to the report, the first transaction band of (UGX 0 – 25,000) recorded 1.63 billion transactions representing 87.9 percent of the total number of transactions.
“All the e-money issued is fully backed up by cash held in trust accounts in partner banks. As at year end, balances held on trust accounts by the partner banks stood at UGX 2.05 trillion, reflecting a 29.7 percent increment from UGX 1.58 trillion reported in June 2023,” the report reads in part.
Michael Atingi-Ego, the BoU Governor, says 2023/2024 marked substantial progress in promoting financial inclusion and the growth of digital financial services, such as micro-deposits, micro-loans and micro-insurance.
Atingi-Ego said the 32 percent year-on-year growth in mobile money transactions underscores the acceleration of digital payments, reflecting increasing reliance on mobile platforms for financial services.
“The rise in mobile money transactions demonstrates the success of our efforts to promote a cashless economy and enhance financial inclusion, ensuring broader access to formal financial services across Uganda,” Atingi-Ego said.
Mobile money in Uganda is a widely adopted financial service that has significantly impacted the country’s financial landscape, providing access to financial services for millions previously excluded from traditional banking. It allows users to conduct transactions like sending and receiving money, paying bills, and purchasing goods and services via their mobile phones. The market is dominated by major telecommunication companies like MTN and Airtel, partnering with financial institutions to offer these services.