Uganda: Shs 30bn Lent Out Through Mokash

MTN Uganda says it gave out Shs 30bn in loans through MoKash, a product where customers can save and borrow through their phones.

MoKash was launched in August 2016 in partnership with Commercial Bank of Africa (CBA). It works on their mobile money platform.

"Since the launch of MoKash a year ago, 2.5 million customers have enrolled onto the service," said the MTN press statement.

At least 1.2 million people are active users. Mobile money customers borrow up to a maximum of one million and the minimum is Shs 3,000. One can save on the platform from as low as Shs 50 to Shs 1 million.

MoKash is being seen as an intervention in easing access to cheaper credit, and deepening saving levels, although the amounts remain relatively small. Through MoKash, customers are also relieved of the burden of the paperwork that financial institutions ask for when processing loans.

Already, mobile phone subscribers are borrowing money through airtime and data. The average interest rates on these products is about 12 per cent.

As much as Shs 2.5tn is transacted through mobile phones monthly, according to official figures. This makes mobile money one of the fastest-growing platforms for money transfers.

SOURCE:THE OBSERVER