United Bank for Africa (Uganda) Limited has entered into partnership with MTN Mobile in Uganda to become the country‘s first mobile money agent in the financial services industry.
This followed the signing of the agreement between the two pan-African companies this month in Kampala, the Ugandan capital. A statement on Thursday said MTN Uganda Chief Executive Officer, Mr. Themba Khumalo, and Managing Director UBA Uganda, Mrs. Margaret Mwanakatwe, signed the agreement on behalf of their respective companies.
Speaking at the signing ceremony, Mwanakatwe said the money transfer service had become Uganda‘s fastest-growing, non-tariff telecommunications value-added service.She said, ”Since launch in March last year, MTN Mobile Money has recorded transfers of close to 600 billion Uganda shillings, and has close to one million registered users. We have reached the unbanked through the mobile phone, and today we bring our customers the added advantage of increased liquidity in mobile money through UBA.”
Mwanakatwe said the introduction of MTN Mobile Money at all its nine branches across the country would boost the penetration of banking services in Uganda and would be complementary to UBA‘s other money transfer services such as U-Direct and Africash, enabling customers to convert cash on their personal and business accounts into e-cash in virtual accounts.
”UBA is one of Africa‘s largest banks and is growing fast in Uganda. Through this partnership we will extend the reach of both MTN Mobile Money and UBA to customers across the country,” she maintained.
Uganda is in the process of investing in the creation of a one large borderless network currently spreading from Kenya in East Africa and Zambia in the south, to Senegal in West Africa. She stated that the mobile money transfer service will help grow the network because ”this is a service that we can roll out in other countries of Africa where both MTN and UBA operate,” she also said.