BOU urges mobile money adoption for enhanced financial security

The Deputy Governor of the Bank of Uganda (BoU), Michael Atingi-Ego, has urged the public to embrace the use of mobile money to reduce financial theft. 

Addressing the Lango sub-region leaders, business community, and other stakeholders in a town hall meeting organised by BoU to sensitise them about the Central Bank’s mandate, Atingi-Ego said mobile money transactions are safe and reduce the risk of theft of money. 

The use of mobile money he said will also reduce the demand for the currency whose cost of printing is very high. 

“Let us embrace the use of mobile money and ensure we keep the mobile phones well and we don’t give burglars an opportunity to steal,” Atingi-Ego encouraged the public. 

He pledged banks’ commitment to improve the outreach to educate the public on how to avoid financial theft in the use of mobile money. 

Bank of Uganda deputy governor, Dr. Michael Atingi Ego (right) handing over condolence contribution for family of fallen West Division Mayor Ogwal Aconga to Lira RCC Lawrence Egole during a meeting on Friday. Photo by Joseph Ekol

About ACF funds 

Ego appealed to people in northern Uganda to acquire the Agricultural Credit Facility loans and invest the funds in agro-processing to add value to the farm products rather than just farming. 

Ego said BoU statistics show that a good number of farmers in northern Uganda are getting ACF loans but a greater percentage are acquiring small amounts of money which they are using for farm production and farm extensions and not considering agro-processing for value addition. 

“We need to encourage our people to borrow ACF funds and inject in agro-machineries to add value to agricultural products from the region to promote the marketing of our crops outside,” Ego advised leaders. 

In his response, Felix Asiru, Centenary Bank Lira branch manager, said people in Lango are hardworking and very productive but what has been barring them from acquiring bigger amounts of ACF money is a lack of collateral and inadequate land for production. 

He said people don’t have enough land for production, suggesting that the Central Bank should consider increasing the ACF loans, saying this would encourage many to apply for the funds.   

However, Bernard Ogwal, the regional manager of Stanbic Bank in northern Uganda, said whereas in Lango, there is inadequate land, in Acholi, there is a lot of land but the uptake of ACF funds is still low because of the lack of information.

Ogwal suggested that commercial banks should embark on sensitisation of the public to inform people about what is required for them to assess the funds. 

Another challenge, he said, is the lack of record-keeping by the farmer which is supposed to inform the bank about the applicant’s capacity to pay the requested amount of funds he or she wants. 

Erute South MP, Jonathan Odur, advised BoU through its regulation function to use the commercial banks and their branches to give information about the Central Bank and popularise the services it offers to the public so people are aware. 

The Lira Resident City Commissioner, Lawrence Egole, while closing the meeting, called upon the commercial banks to take themselves to the people so that the public can get to know some of the services they are offering. 

He said people are ending up in the hands of the money lenders because they don’t know about the many opportunities commercial banks have which they can benefit to improve the economy. 

During the meeting that took place at Margarita Palace Hotel, Atingi-Ego also delivered BoU’s condolence message and financial support to the bereaved family of fallen Lira City West Division Mayor, Mike Ogwal Aconga.