Bank of Uganda Reports: Over 90% of Mobile Money Transactions Below Sh50,000
In the annual report submitted to Parliament for review this week, the Bank of Uganda (BoU) has disclosed that approximately 93% of mobile money transactions in Uganda during the 2022/23 financial year did not exceed a value of Sh50,000.
As of June 30, 2023, the number of registered mobile money customers in Uganda reached 42.9 million, marking an 11.4% increase from the previous year when there were 38.5 million customers.
The report further highlighted a significant upswing in the value of mobile money transactions, with an increase of 22.6%. In June 2023, these transactions totaled Sh191.3 trillion, compared to Sh156 trillion in June 2022. The transaction volumes saw a parallel increase of 20.8%, rising from 4.8 billion to 5.8 billion over the same period.
Despite the overall growth in transaction values and volumes, the findings from the Bank of Uganda indicated a prevalence of low-value transactions. The average value of each transaction during the period was recorded at Sh36,477.
Low-value transactions dominated 92.8% of the total transactions and were valued at Sh50,000 or less.
Mobile money was first introduced in Uganda in 2009 and has since played a pivotal role in driving financial inclusion in the country. According to the 2021 World Bank Global Findex Report, Uganda boasts a reported 66% of the population having access to formal financial services, compared to the Sub-Saharan average of 55%. Much of this progress is attributed to the penetration of mobile money.
Despite the large number of registered mobile money customers, only 26.4 million of the 42.9 million customers conducted at least one transaction in the three months leading up to the end of the period under review.
