This archive report was first published on 9 June 2020.
Published on June 9, 2020, the Uganda Communications Commission report revealed a significant increase in mobile money accounts in the country.
Between December 2018 and December 2019, a total of 2.6 million new mobile money accounts were added, bringing the total number of registered accounts to 27.1 million by the end of 2019.
However, the report also noted a decline in the number of mobile money agents, from 225,879 in September 2019 to 219,577 by the end of December 2019.
This reduction has been attributed to increased competition from agency banking, as well as the growing number of merchants accepting mobile payments.
Agency banking, which allows commercial banks to use agents like petrol stations and retail shops to collect and disburse cash, has been gaining popularity in Uganda.
According to the Uganda Revenue Authority, the shift to agency banking has resulted in a loss of Ush30.5 billion ($7,903,980) in taxes, as high-value individuals opt for agency banking due to the tax-free withdrawals.
Since the introduction of a 0.5 per cent tax on mobile money withdrawals in 2018, many customers have switched to agency banking, citing the cost savings.
