Uganda’s mobile money sector is experiencing explosive growth, transforming the country’s financial landscape and driving new opportunities for economic inclusion.
Today, mobile money services contribute more than 5% of Uganda’s GDP, playing a crucial role in enabling access to financial services, especially in rural and underserved areas.
Services such as MTN Mobile Money, Airtel Money, and others have allowed millions of Ugandans to send and receive money, pay bills, access credit, and conduct business transactions via mobile phones — many for the first time in their lives.
“This technology has brought banking to the palm of the everyday Ugandan,” said a fintech analyst based in Kampala. “We’ve seen dramatic improvements in access, particularly for people who never had access to traditional banking.”
According to the Bank of Uganda, mobile money transactions hit record levels in 2024, with over 2.1 billion transactions valued at UGX 170 trillion (approx. $45 billion). The sector has empowered small businesses, farmers, market vendors, and youth entrepreneurs by reducing reliance on cash and expanding the digital economy.
Uganda is now recognized as one of the leading mobile money markets in Africa, alongside Kenya and Ghana.
The Risk: A Surge in Digital Scams
However, this rapid digital expansion comes with growing cybersecurity threats, particularly for first-time users.
The Uganda Communications Commission (UCC) and police have reported a rise in SIM swap fraud, phishing schemes, fake mobile money agents, and account takeovers.
“Criminals are exploiting gaps in digital literacy. Many users don’t know how to spot fraudulent messages or protect their PINs,” said a spokesperson from Uganda’s National CERT (Computer Emergency Response Team).
Common scams include:
Fake loan offers requiring upfront “processing fees”
Phishing messages that mimic official mobile money alerts
Unlicensed agents intercepting customer details
SIM swaps that give fraudsters access to wallets
Some victims, especially in rural areas, have lost their life savings.
In response, Uganda’s government and telecom companies are rolling out cybersecurity awareness campaigns, implementing biometric verification systems, and strengthening regulatory frameworks to protect consumers.
The Central Bank of Uganda is also considering tighter KYC (Know Your Customer) policies and advocating for financial literacy programs targeting rural communities, youth, and the elderly.
“We must strike a balance between digital innovation and user protection. Trust is the foundation of financial inclusion,” said a Bank of Uganda official.
While challenges remain, Uganda’s mobile money revolution is seen as a model for digital financial inclusion across Africa. Stakeholders say that education, enforcement, and innovation will be key in making sure the digital economy remains both accessible and secure for all.
