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According to officials from two institutions, customers will earn interest on saving of 5% per annum on regular savings and 9% on fixed deposits respectively.
KCB Bank Head of Marketing and Communication Diana Komukama explained that Airtel money agents will be able to borrow mobile loans for as low as shs 300 and its projected that this will revolutionize saving culture in the country.
She however revealed that next month Airtel Uganda together with the bank will unveil fixed savings accounts to its portfolio which will enable airtel money customers conveniently make deposits from shs 250,000 up wards.
“We are hoping that with this product in place we shall be able to boost savings. Most of our customers are u banked with limited or no access to financial products especially saving deposits. By offering competitive interest rates on and extremely simple product we are attempting to democratize savings and contribute to building a saving culture in Uganda. We strongly believe this is now the idea to reach u banked population in Africa, “Airtel Managing Director, Manoj Murali said.
Director National Payment and Settlement at Bank of Uganda Mackay Aomu hailed KCB Bank and Airtel Uganda for the innovations and continued support towards government agenda to drive financial inclusion in Uganda.
“This is a big win for financial inclusion in Uganda. These products are crucial answer to our country’s efforts to empower millions of Ugandans through affordable credit and convenient saving,” Aomu said.
According to bank of Uganda, in 2020, the number of registered mobile money customers amounted to over 30.3 million more than over third quarter of 2019, the value of mobile money transactions in Uganda corresponded to 5.2 billion U.S. dollars. Data from Bank of Uganda indicates the value of mobile money transactions grew by 28.2 per cent in 2020 while number of transactions grew by 25 per cent during the same period.
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Mobile money transactions hit an all-time high across board in 2020 including deposits and withdrawals realizing Shs10 trillion in value of monthly transactions in December.
Data from Bank of Uganda indicates that the value of mobile money transactions grew by 28.2 per cent in 2020 compared to 2019 while the number of transactions grew by 25 per cent during the same period.
According to the Central Bank, mobile money operators between January and December 2019 recorded 2.8 billion transactions compared to 3.5 billion during the same period in 2020.
The value of transactions also rose to Sh93.7 trillion in 2020 compared to Shs73 trillion in 2019.
2020 also marked the year transactions grew to double digits month-on-month having recorded Shs10.3 trillion in value of transactions in December.
Deposits and withdrawals equally grew to Shs2.5 trillion month-on-month from an average of Shs1.5 trillion in 2019.
The growth could be partly explained by the increase in subscriber numbers which grew from 23.5 million to 30.5 million users in December 2020.
Mobile money agents, who are the facilitators of the service, also increased their account balances growing their capacity to effectively handle various transactions.
Balance on agent accounts increased from Shs2.2 trillion in 2019 to Shs3.2 trillion in 2020, a monthly average of Shs170b in 2019 compared to Shs250b in 2020.
The growth in mobile money could be representative of a recovery in the economy, following the lifting of the Covid-19-related lockdown in June last year.
Effect of Covid-19
Data from Bank of Uganda indicates that in 2020, mobile money faced the worst declines in April, the month in which government implemented the lockdown, which had been announced in March.
Value and number of deposits and withdrawals both dropped in April but slowly recovered in May.
The growth comes in spite of the 0.5 per cent mobile money levy government imposed on the service in 2018. The levy had in June 2018 caused a lot of declines with experts worrying about the progress of one of the fastest growing sectors of the economy.
Impact of tax
The 0.5 percent, according to Ronald Amega, the Ernst & Young senior manager tax advisory, has not had a lot of negative impact on mobile money because the service is driven by the informal sector that often passes the additional costs onto the sender of the money.
However, if introduced on cash withdrawals in the banking sector, the tax will negatively affect the economy.
Check also;
- CSBAG Scoops Prestigious Award For Mobile Money Campaign
- Social Media And Mobile Money Tax Bring A Huge Decline In URA Revenues
- Government Approves Reduction Of Mobile Money Transaction Tax
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![[dropcap]A[/dropcap] section of women in Bugongo parish and Nawangaiza parish in Nawandala Sub County, Iganga District have decried the near-impossible terms set for them to access GROW funds. They have now petitioned their woman member of parliament for Iganga Hon. Kauma Sauda Alibaawo to ask the government for revised terms and conditions. This is to enable them to benefit from the program. The disgruntled women accuse the implementers of the program of charging the money. They are also asking for their land titles and land agreements. They said that such properties are governed by their husbands. These, therefore want the government through their woman MP to intervene and revise the requirements for one to benefit. The women were on Wednesday at Namabwere primary school in Nawandala Sub County. They had gathered in their respective groups to receive over 300 chickens from Hon Alibaawo in her campaign to improve the livelihood of women in Iganga district. Each group was given 50 chicken as start-up capital in their journey to prosperity. Read what some leaders said; Ms Naigambi Lydia from Nawandala Trading Centre says, “They solicited money from us through opening bank accounts and depositing Shs80,000. They also asked for land titles and land agreements from us yet we don’t have such things. I was informed that I needed to have a business with a capital of Shs4m yet my capital was very small.” The chairperson Kisoboka Saving Group in Nawandala Ms. Nakagolo Faith said they were not able to join the program. This is given the many conditions attached. She also asked their woman MP to raise their concerns to the relevant offices. The MP condemned the mode of implementation of the program. She cited that it has turned to benefit the well-off class of women other than the intended group. She further asked the government to intervene saying the current strings attached to the programme are very tight to accommodate a common woman. GROW project is a Government of Uganda initiative that arose out of the need to respond to the needs of women entrepreneurs. This is especially those who want to grow their businesses, sustain their self-employment and create more jobs. Check Also; Iganga District NRM Leaders Urge Museveni To Fulfill Election Promises Of 2021 International Women's Day: Celebrating Progress Towards Equality](https://i0.wp.com/newslexpoint.com/wp-content/uploads/2024/11/Iganga-women-decry-tough-terms-to-access-GROW-funds-e1731738339732.jpg?resize=300%2C160&ssl=1)
