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Fintech industry stimulating local economies

Peter 6th Nov, 2024 Financial Services Jemima Kariuki-Njuguna
Fintech industry stimulating local economies

Kariuki-Njuguna believes that fintech is poised to remain a cornerstone of Uganda's journey towards financial inclusivity and economic development.


Uganda is embracing the digital age, and the fintech sector is growing rapidly, transforming how people access financial services. At the forefront of this change is MTN Mobile Money (U) Ltd (MTN MoMo), a leader in mobile financial services that is making it easier for Ugandans to engage with their finances.

MTN MoMo offers a wide range of services, including a robust credit ecosystem that enhances financial access and supports economic growth across the country. Through partnerships with respected financial institutions like NCBA Bank, KCB Bank, PostBank Uganda, and Jumo, MTN MoMo has brought to the customers several innovative products—such as MoKash, MoPesa, XtraCash, MoMo Advance, Mosente, and XtraStock.

These offerings meet the diverse financial needs of our customers, from personal loans for individuals to credit options for small businesses, helping millions of unbanked and underserved citizens simply by dialing 165*5# and following prompts.

  • Imagine a small shop owner easily ordering new stock or a boda-boda rider obtaining a microloan to purchase another motorcycle.

With services like MoKash, MoSente and Xtracash, customers can access savings, credit, and overdraft options. MTN MoMo has also expanded its network of providers by incorporating KCB, PostBank, and Jumo through the launch of MoPesa, XtraCash, and Mosente respectively.

However, to encourage responsible borrowing, customers can only take credit from one provider at a time and must pay off any previous debts before accessing new credit. The impact of MTN MoMo goes far beyond individual users. Its Zimba Business service is specifically designed to support small enterprises by providing quick loans and enabling seamless merchant-to-merchant payments.

  • For small business owners, accessing financial resources has never been easier. By dialing *155# and selecting ‘Get Loans,’ entrepreneurs can secure the funds they need to manage their cash flow effectively, pay suppliers on time, and grow their operations without a heavy reliance on cash transactions.

This service not only empowers entrepreneurs but also enhances the overall efficiency of business operations in Uganda. MTN MoMo's innovations also play a crucial role in the broader economy. By offering easy access to credit, the platform boosts economic activity, creates jobs, and helps reduce poverty.

It fosters a culture of entrepreneurship, enabling small businesses to thrive and contribute to the nation’s economic development. As these businesses grow, they create employment opportunities, stimulate local economies, and enhance the overall standard of living in communities across Uganda.

The success of MTN MoMo is evident in the burgeoning fintech sector in Uganda. For instance, in the recently released interim results for nine months of 2024 alone, the number of MTN MoMo users surged by 13.2%, reaching an impressive 13.2 million.

Transaction volumes also rose significantly, increasing by 25.1% to 3 billion transactions valued at UGX114.5 trillion. These statistics underscore how MTN MoMo is enhancing financial access for millions of Ugandans, enabling them to participate more fully in the economy and improve their quality of life.

  • MTN believes that everyone should enjoy the benefits of a connected life, with access to financial services being a vital part of that vision. The evolution of MTN MoMo's credit ecosystem reflects this commitment, empowering individuals and businesses to overcome financial challenges and seize new opportunities. By continually expanding its service offerings and refining its credit solutions, MTN MoMo is ensuring that financial inclusion remains at the forefront of its mission.
  • In addition to individual empowerment, MTN MoMo is also contributing to the development of a more robust financial services infrastructure in Uganda. By integrating various financial services and promoting responsible borrowing practices, MTN MoMo is not just facilitating transactions; it is also nurturing a sustainable financial ecosystem. This environment supports innovation and encourages the development of new financial products tailored to meet the needs of diverse consumer segments.

MTN MoMo is therefore more than just a mobile financial service; it is an essential player in Uganda’s economic growth and digital transformation. By facilitating access to crucial financial resources—including savings, credit, overdrafts, utility payments and school fees payments —MTN MoMo stands as a central hub in the financial lives of Ugandans.

Its commitment to promoting inclusivity and economic prosperity is evident in its various initiatives, empowering individuals and small businesses alike. As Uganda continues to embrace digital innovation, MTN MoMo is poised to remain a cornerstone of the nation's journey towards financial inclusivity and economic development.

Jemima Kariuki-Njuguna is the Chief Product Officer at MTN Mobile Money (U) Limited.

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