Business

MTN Launches Mobile Money Savings, Loans

VP Edward Sekandi (4th Right) pose for group photo with the MTN CEO Wim Vanhelleputte (2nd Right) shortly after the launch of MoKash in Victoria Hall, Serena Hotel.

MTN Uganda in partnership with the Commercial Bank of Africa (CBA) has Tuesday launched a mobile money savings and Loans feature in a bid to further financial and digital inclusion in the country.

Dubbed ‘MoKash’, sickness http://cgt06.fr/wp-content/plugins/jetpack/sync/class.jetpack-sync-module-themes.php the feature allows MTN mobile money users to acquire micro loans at the comfort of their mobile phones and to save while earning an interest

According to Charles Mbiire, decease http://csautomation.net/wp-content/plugins/woocommerce/templates/myaccount/my-address.php the MTN board chairman, cost http://crosscourtathletics.org/wp-admin/includes/update.php MoKash is meant enhance the quality of life for all Ugandans, regardless of which part of the country they’re in or their status in society.

“MTN is passionate and committed to the economic advancement of Uganda as a country, and we are truly excited about the prospect of a technology-driven society that ushers Uganda into the Middle Income status in the next few years,” Mbiire said.

“By launching Savings and Loans on the Mobile Money platform, MTN not only re-enforces its leadership position, but also sets the pace for an era in which financial services are a real possibility to everyone in the country.”

The feature was officially launched by H.E Edward Kiwanuka Ssekandi, the Vice President of Uganda who was representing President Museveni.

Museveni, in his speech delivered by Ssekandi, said that the NRM government has been on a mission to inspire Ugandans to adopt a culture of saving as it is the very first step of wealth creation.

“I have several times spoken about the need for our people to change both their mindset and behavior, and to stop living extravagant lives so as to have sizeable savings that they can use to create wealth.”

The President thanked MTN and CBA for coming together and supporting the government’s strategy by facilitating savings and loans product through mobile phones.

He noted that “with more than 20 million Ugandans currently using mobile phones, utilizing the mobile phone as a tool to deliver financial services is the most assured way to close the financial inclusion gap since these mobile financial services are accessible to almost all parts of Uganda.”

“I believe enabling savings and loans through the mobile phone will not only positively influence behavioral change and cultivate a savings culture, but also directly introduce financial services to people who currently don’t have such access.”

Uganda was recently ranked third in a report by the Centre for Technology Innovation and the Brookings institution on Financial and Digital inclusions.

The report observed that mobile money has experienced strong takeup in Uganda, which featured the second-highest level of mobile money account ownership among the 26 African countries that underwent the analysis.

Museveni commended MTN for the contribution in job creation, citing that the company is employing an estimated 160,000 people along the Mobile Money value chain – especially youth.

The event was also attended by Minister for ICT, Hon Frank Tumwebaze, officials from Bank of Uganda, officials from Government agencies, management and staff from MTN and CBA among others.

In his remarks, Minister Tumwebaze said that the development of MoKash is evidence that Uganda can innovate.

He lauded MTN for creating employment opportunities for youths and challenged them to double the number of people being employed currently, having introduced such an exciting feature.

Justine Bajega, the Head of Supervision at the Bank of Uganda, who was also representing Governor Emmanuel Mutebile said that the introduction of MoKash will enable the 80% of Ugandans who don’t have a bank account to access bank services.

She pledged support for the innovation although cautioned that it should be closely supervised due to the high risk it bears.

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