The Ministry of Trade, Industry and Cooperatives has begun talks with MTN Uganda aimed at accelerating the digitalisation of Uganda’s business sector, with a strong focus on modernising Savings and Credit Cooperative Organisations (SACCOs) and expanding financial inclusion across the country.
The discussions, held at the office of the Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna, centred on leveraging digital financial services to improve transparency, efficiency and access to finance for cooperatives, small businesses and informal traders.
MTN Uganda Chief Executive Officer Sylvia Mulinge said the telecommunications company is keen to partner with government to help cooperatives transition from manual systems to digital platforms, particularly through the use of mobile money.
“Unlike paper-heavy manual transactions, mobile money improves the traceability of funds and promotes greater transparency,” Mulinge said, noting that digitised financial services would strengthen accountability while making transactions faster and more secure.
Minister Tanna said the partnership presents an opportunity to improve the management of billions of shillings that government channels annually through programmes such as the Parish Development Model (PDM) and Emyooga SACCOs.
He said routing some of these transactions through secure digital payment systems could improve efficiency, enhance accountability and expand financial inclusion, which remains one of the strategic priorities under Uganda’s National Development Plan IV (NDP IV).
The minister encouraged MTN Uganda to deepen its support for micro, small and medium enterprises by targeting market vendors, small traders and start-up businesses with affordable digital financial solutions.
He noted that expanding access to mobile money services and products such as MoKash loans could help entrepreneurs grow their businesses while reducing dependence on informal financing.
However, Tanna urged the telecom operator to review the cost of mobile money transactions, saying high charges continue to discourage many Ugandans from fully embracing digital payments and instead drive them back to conventional banking channels.
The minister also commended the government’s increasing use of electronic systems in the disbursement of public funds, describing digital payments as one of the most effective ways to track resources and ensure they reach intended beneficiaries.
Beyond payments, the ministry wants MTN Uganda to play a greater role in improving financial literacy among Uganda’s small businesses.
Tanna called on the company to support entrepreneurs with training in bookkeeping, record management and other financial management skills to help them operate sustainable businesses.
The meeting also discussed the recent enforcement of the government’s trade order aimed at removing street vendors and unauthorised kiosks from roadsides, pavements and drainage channels to ease urban congestion.
Tanna encouraged MTN Uganda to support mobile money agents affected by the exercise by helping them relocate into formal business premises where they can continue serving customers and expand their businesses.
For its part, MTN Uganda pledged to work closely with the Ministry of Trade to advance Uganda’s digital transformation agenda and support the country’s transition toward a more inclusive, transparent and cashless economy.