UGANDA:Mobile Money Transactions Hit UGX 73 Trillion

The value of mobile money transactions reached a staggering Uganda shilling 73.1 trillion at the end of June just before introduction of tax on the transactions. 

The figures are contained in the Bank of Uganda Annual Report for 2017/18 financial year. The value mobile money transactions increased from 52.8 trillion shillings at the end June 2017 to 78.1 trillion shillings at end of June 2018. 

The statistics mean that mobile money transactions were valued at 20 Billion Shillings per day. 

The report indicates that number of mobile money transactions at the end June 2018 were 1.3 trillion. This was an increase from 1.1 transactions registered at the end of June 2017. 

"Mobile money transactions continued to register significant growth in the year that ended June 2018. The number of mobile money transactions increased to 1.3 trillion for the year to end June 2018 from 1.1 trillion transactions in the prior year," the report reads. 
"The corresponding value of mobile money transactions increased to UGX 73.1 trillion from UGX 52.8 trillion in the previous year," the report further says. 
However, Bank of Uganda says the number of registered mobile money users decreased from 22.8 million in June 2017 to 22.7 million as at the end of June 2018. The reduction is attributed stringent sim card registrations measures introduced by government last year. All sim cards were re-registered with National Identity cards and those which were not verified switched off. 
The increase in number and value of transactions, BOU says have been bolstered by divergent usages beyond the initial remittances, airtime purchase and bills payments. 

"New developments such as bank accounts to mobile money wallet vice versa have significantly changed the conduct of banking business and increased convenience of access to banking services. In addition, customers are now able to save and borrow through their mobile money accounts which has positive knock-on effect to financial intermediation in general," the report says. 

The 1 percent mobile money transactions tax which was effected at the start of July caused uproar among members of the public. This prompted the President to heed to the plea ordering reduction of the tax to 0.5 percent. 

The president also ordered that the tax be charged on withdraws only.