MTN Uganda has entered a partnership with ClinicPesa a digital health solutions provider to extend health insurance to customers at an affordable price where customers can save for their health challenges through MTN mobile money.

The initiative involves mobile money users subscribing to the MTN Momo platform where they can then be helped to open a ClinicPesa account and instantly start saving their money.

Richard Yego the managing director of MTN Mobile Money Limited said this is a milestone for MTN Mobile Money and a testament to them how they have supported financial inclusion this time in the health sector.

“We believe that our partnership with ClinicPesa will bring services closer and make it more affordable in the long term for people to save for health services because today accessing health services is very expensive,” he said.

“More Ugandans are going to be financially included through this partnership because you can sign up through MTN mobile money and save starting from as low as sh500. “I, therefore, encourage all MTN customers and those who have not been registered by buying an MTN sim card to join and enjoy the benefits that come with ClinicPesa services,” Yego added.

Currently, Uganda’s health insurance options are an employer or community-based schemes and are estimated to cover less than 2 percent of the population. But now with over 15.9 million MTN subscribers, and 9.5 million Momo Users, Sylvia Mulinge, the MTN Executive Director said the new product will support financial inclusivity and access to health care to a large section of the public.

Chrispinus Onyancha, the Chief Executive Officer of ClinicPesa said one can save from as little as sh500 daily and be able to receive their savings at the end of the year at a five percent interest rate.

Onyancha emphasized that the saver can also use their money anytime they need it to access health services at the over 1000 health facilities they have partnered with in offering this service.

“The initiative has provided a special package for expectant mothers to also save for the time when they are due for delivery.  Users of the service shall also be able to acquire loans to finance their health needs in case their savings are not enough for their treatment,” he said.

The loans shall range between sh3000 to sh3m and shall be issued based on the customer’s transaction history with the MTN.

Richard Byarugaba the Head of Finance at the Bank of Uganda, who represented the deputy governor said that the initiative is likely to enable a large population of Ugandans to save more for future eventualities especially bad health not just for them but for their family and dependents.

Byarugaba added that with only 15 percent of Ugandans saving with financial institutions and 17 percent on their mobile phones, the initiative shall ease public saving and promote health care in the country.

He added that the Bank of Uganda has a goal to achieve price stability, financial inclusion and a sound financial system in support of social economic transformation.

According to him the initiative shall improve the saving culture of Ugandans and shall also leverage their mode of saving which is mobile money.

Vanessa Muhwezi, the manager of lending at the Uganda Microfinance Regulatory Authority (UMRA)  welcomed the initiative saying that it will serve a reasonable population of Ugandans who rarely deal with banks but instead opt to do business with SACCOs, money lenders and microfinance centres among others.