The impact of mobile telecommunication on mobile money in Uganda

Abstract

This dissertation investigated the integration of mobile telecommunications with financial technology and its impact on Uganda’s economy and society. Mobile money has transformed financial inclusion, enabling over 80% of Ugandan adults to access financial services. The research utilizes secondary data from 2020 to 2024 to explore economic, social, technological, regulatory, and barrier-related aspects of mobile money services. Economically, mobile money has boosted transaction volumes for SMEs by 20% and increased cross-border remittances by 25%. Socially, it has enhanced the efficiency of aid distribution by 30%, reduced healthcare costs by 15%, and improved educational payment mechanisms by 20%. Technological advancements include a 70% adoption of USSD technology, an 18% increase in NFC transactions, and a 22% rise in QR code usage. Despite these advancements, barriers such as inadequate internet connectivity, low digital literacy, and high compliance costs persist. Approximately 40% of rural areas lack sufficient internet connectivity, and 35% of the population struggles with digital literacy. Compliance costs constitute about 10% of operational expenses for mobile money providers. Regulatory frameworks have facilitated the industry's growth, with 95% of providers adhering to fraud prevention standards and 98% complying with KYC regulations. The findings underscore mobile money’s significant role in economic development, financial inclusion, and technological innovation. However, addressing existing barriers and enhancing regulatory frameworks are crucial for maximizing its potential. This thesis contributes to the understanding of mobile money's multifaceted impact in Uganda and provides insights for policymakers and stakeholders to foster a more inclusive and efficient financial ecosystem. Key players in Uganda’s mobile money industry, such as MTN Mobile Money and Airtel Money, have significantly influenced these outcomes. Future directions for mobile money services include leveraging block chain for transparency, expanding agent networks, and enhancing digital literacy programs. The study concludes with recommendations for overcoming barriers and optimizing the regulatory environment to support the sustained growth of mobile money services in Uganda.