Digital Transformation Summit Kicks Off in Kampala, Highlighting Mobile Money’s Crucial Role

The Middle East and Africa Digital Transformation Summit officially opened on Wednesday at the Kampala Serena Hotel, with Rt. Hon. Robinah Nabbanja emphasising its perfect alignment with Uganda’s national goal of leveraging digital transformation for inclusive and sustainable socio-economic development.

“Every facet of social, economic, and political life is increasingly shaped by the digital sphere and driven by ICT,” stated Nabbanja, underscoring the government’s commitment to digital transformation as a core pillar for national progress. She highlighted the summit as a valuable platform for learning, collaboration, and networking around emerging technologies.

Nabbanja further detailed Uganda’s Digital Transformation Roadmap (2023/24-2027/28), which focuses on enhancing digital infrastructure, promoting e-services, fostering cybersecurity, empowering digital skills, and encouraging innovation – all critical for unlocking the nation’s full potential.

Richard Yego, CEO of MTN MoMo, emerged as a key voice during a panel discussion on Financial Inclusion for Underserved Communities, revealing the profound impact of mobile money on Uganda’s socio-economic transformation. Yego hailed MTN MoMo as an “unsung hero” at the heart of this digital revolution.

“We’ve built a seamless, interoperable platform that connects mobile money accounts to wallets, making it just as easy and affordable to send money across borders as it is locally,” Yego asserted. He emphasised that MTN MoMo’s solutions are designed to meet everyday needs, “from empowering farmers to supporting daily transactions.”

Yego provided compelling statistics to illustrate MTN MoMo’s significant reach and impact in Uganda:

• Over 13 million active customers are experiencing seamless onboarding, enhanced customer journeys, and faster services.
• A vast network of over 200,000 trained agents countrywide ensures accessibility even in the most remote areas. This extensive reach not only creates jobs but is crucial in a country where traditional banking infrastructure is limited, especially in rural settings.
• With smartphone penetration currently around 45% and growing, MTN MoMo is strategically focused on bridging the digital divide, reaching everyone, including farmers in rural areas, through initiatives like smartphone financing.

Yego’s insights came during a discussion that delved into how innovations such as Digital Public Goods (DPGs), Digital Public Infrastructure (DPI), and automation technologies are driving scalable, inclusive solutions for unbanked and underserved populations across the Middle East and Africa. He noted Uganda’s active engagement in building its DPI, including its National Identity system and leveraging data exchange platforms like UG-Hub for programs such as the Parish Development Model.

Richard Yego, CEO of MTN MoMo

Yego highlighted MTN MoMo’s critical role in socio-economic transformation, asserting that mobile money consumption has dramatically expanded financial inclusion in Uganda, empowering millions previously excluded from formal banking systems.

He detailed several ways MTN MoMo is driving this transformation:

• Fueling Local Economies: By facilitating easy and affordable transactions, MTN MoMo injects liquidity into local economies. For example, farmers can receive instant payments for their produce, small business owners can manage finances digitally, and families can send and receive remittances, reducing risks and costs associated with cash. Yego noted that the value of mobile money transactions in Uganda reached approximately 94% of the country’s GDP in 2021.
• Empowering Entrepreneurs: Access to digital payments and microloans through platforms like MoMo is empowering micro and small enterprises to expand, manage cash flow more effectively, and access new markets, fostering entrepreneurial activity.
• Reducing Poverty: Studies across various African markets have shown that mobile money can lead to poverty reduction, higher employment, and contribute significantly to GDP growth by reducing transaction costs and helping households manage financial shocks.
• Supporting Government Initiatives: Mobile money platforms are increasingly integrated with government services, facilitating the efficient disbursement of funds (e.g., social welfare payments) and collection of taxes, thereby improving public service delivery and revenue mobilisation, as seen with initiatives like the Uganda Revenue Authority’s digital tax systems.

As the Middle East and Africa Digital Transformation Summit continues, MTN MoMo stands as a shining example of how private sector innovation, coupled with a commitment to digital inclusion, can profoundly impact a nation’s economic growth trajectory. By empowering millions with accessible, reliable, and affordable financial services, MTN MoMo is not just transforming lives but fundamentally reshaping Uganda’s socio-economic landscape, one digital transaction at a time.