According to the latest report released by Quantum Global’s independent research arm, Quantum Global Research Lab has revealed that Uganda ranks 7th in the use of mobile financial services at 27%, behind Kenya 68%, Sudan at 52%, Gabon at 50%, Algeria 44%, Congo 37% and Somalia 34%.
The scores are based on a range of factors that include mobile phone penetration, financial and conventional infrastructure development, regulation and the appetite of private players to pursue new initiatives that have driven the the variation in digital financial services, unlike countries like Cameroon where only Banks are allowed to offer digital financial services directly.
“There are 203 Million registered mobile money accounts in the world, almost half of which are in Sub-Saharan Africa with East Africa accounting for the highest share. At least 19 African countries have more registered mobile money accounts than Bank accounts.” read part of the report.
Uganda was also ranked number four in Financial inclusion in Sub-Saharan Africa, with 28% of the adult population using formal financial services. Kenya ranked first at 67% and Nigeria, Africa’s most populous country and largest economy in Sub-Saharan Africa, was ranked second at 60 per cent as shown below.
Our neighbors (Kenya) have a high rate of financial inclusion which is mostly supported by having the highest percentage (at nearly 60%) of people who own a mobile banking account. Safaricom’s M-PESA mobile money platform is ranked highest with approximately 30 Million subscribers, making it the most successful digital financial services initiative globally.
The report further notes that Ugandans receive nearly 70 per cent of their remittances through mobile phones, followed by Ivorians at 50%. This is well above the Sub-Saharan Africa average of 30 per cent, and a comparable markets including South Asia and Latin America each at 5 percent.