When MTN broke ground in mobile money business

By Benon Ojiambo

Fred Gusino, a 30-year-old resident of Nawuwongo in Kampala lives over 200km away from his parents in Masinya subcounty, Busia district. A few years ago, Gusino would seal money in an envelope, take it to bus operators, who would deliver it his parents.

Or he would wait for anyone going to the village and give it to them for delivery. This, he says, could take time before the money was delivered to his parents and it involved risks such as losing the money to untrustworthy people.

However, the introduction of mobile money by MTN Uganda in March 2009, was a game changer. It ushered in convenience to the many users in Gusino's shoes with people to take care of, but live in distant places. "I can now send money to my parents or anybody else instantly and conveniently," says Gusino.

Internationally, mobile money was pioneered in Kenya with the launch of M-Pesa by Safaricom, the country's largest mobile network operator in 2007. This was a ground-breaking activity that the rest of the world followed.

A mobile money operator serving customers at an MTN booth in Kampala

After two years, one of Uganda's mobile network operators, MTN Uganda, introduced mobile money to the market. This set the pace for the mobile money revolution that has swept the Ugandan economy and taken it by storm.

Telecom companies offering mobile money services have since grown to about fi ve. The value of mobile money transactions has exponentially grown from about sh490m in 2009 to about sh32.5 trillion by the end of December 2015, according to the Bank of Uganda (BOU).

The number of registered mobile money customers has tremendously increased from about 10,000 in 2009 to about 19.5 million as of 2015, according to the Uganda Communications Commission (UCC) statistics.

Of these, MTN Uganda boasts of over seven million mobile money users, representing about 70% of its total subscriber base. "MTN mobile money has contributed to the creation of jobs in the country, with more than 67,000 agents and 300 merchants currently transacting across the country.

It employs, directly and indirectly, an estimated 205,000 people along the mobile money value chain, especially the youth," said Phrase Lubega, MTN Uganda's general manager for mobile fi nancial services. The value chain includes making electricity, water, pay-TV payments and tax remittances through the mobile money service.

"As of June, an estimate of 218,000, 49,000 and 324,000 electricity, water and pay-TV bill payments were made through MTN mobile money respectively," Lubega said. He added that over 250 schools countrywide have registered to receive school fees through the service.

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Nilecom Ltd proud to be the biggest dealer for MTN Uganda

By Vision Reporter

Nilecom is honoured and proud to be a franchise of Uganda's leading telecom company, Paula Namuli, the managing director, says.

Having started out in 2001, Nilecom has been successful in selling and distributing MTN telecommunication products and services through a chain of MTN-branded outlets across the country, over 10,000 sub-distributors and a geographical zone covering Kampala, Wakiso, Luwero, West Nile and several retail fuel stations."

The products include SIM packs, mobile phone airtime, mobile handsets, fixed lines, internet as well as mobile money are delivered through sub-distributors either directly (through retail shops/direct sales agents), or indirectly, through third party stockists and retailers.

"Nilecom Ltd has come a long way since its inception. Our mission is to be the leading telecommunication distribution company in Uganda, distinguished by the quality of our services. The backbone of the company is guided and defined by the principles of honesty, integrity, transparency and respect. As we strive for the highest standards of customer care and satisfaction, the Nilecom's guiding principles determine and guide our internal relationships in business conduct as well as our relations with all external stakeholders," Namuli explains.

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