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Mobile Money Transactions Grew To Shs93.7 Trillion In 2020- BoU Report

Mobile Money is growing rapidly in Uganda

Mobile money transactions increased to Shs93.7 trillion in 2020, Bank of Uganda (BoU) Annual Supervisory Report released last week has revealed.

“The volumes of mobile money transactions rose significantly by Shs3.5 billion while the value grew to Shs93.7 trillion. This growth was significant in the quarter ending December 2020 as economic activity increased following continued easing of lockdown measures and as banks and the government continued to encourage the use of non-cash payments to limit the spread of COVID-19,” the report reads in part.

Bank of Uganda further revealed that a total of 30.7 million customers were registered for the service at the end of December 2020 but of these, only 19.8 million customers are active.

Relatedly, Money remittance inflows to Uganda slightly increased from USD 571.4 million approximately Shs2.024Trn for the year ended December 2019 to USD 579.0 million about Shs2.051Trn for the period ending December 2020.

On the other hand, outflows on  the other hand significantly decreased from USD 324.1 million to USD 213.8 million.

In the same report, Bank of Uganda revealed that large Savings and Credit Cooperatives Draft Regulations for the Large SACCOs (Registered societies) are being reviewed and will be published after review and approval processes are concluded.

In February 2020, Bank of Uganda through the Minister of Finance, sought a Legal Opinion from the Attorney General on the full implications of the regulatory regime for Large SACCOs following the enactment of the Cooperative Societies (Amendment) Act, 2020.

In October 2020, the Attorney General replied to both Central Bank and Ministry of Finance opining that SACCOs that fall under the ambit of Section 110 of the Tier 4 Microfinance Institutions and Money Lenders Act, 2016, are to be regulated and supervised by the Central Bank while the Registrar of Cooperative Societies is still mandated to register and deregister Cooperative Societies as per the Cooperative Societies (Amendment) Act, 2020.

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