Overview:
MTN's entry into the e-commerce space comes four years after it exited Jumia, Africa's largest e-commerce business, where it held an 18.9% stake.
Telecom giant MTN Uganda is set to shake up the country’s e-commerce landscape with the launch of its online shopping platform, Market by MoMo.
The platform, slated for launch next month, will allow customers to shop for groceries, appliances, and health and beauty products, among others, using MTN’s mobile money network for payments.
MTN’s entry into the e-commerce space comes four years after it exited Jumia, Africa’s largest e-commerce business, where it held an 18.9% stake.
“We are trying to build a one-stop center. From voice, SMS, data, mobile money, and now shopping,” said Brian Mutungi, MTN Market by MoMo country manager.
The platform will operate under Group FinCommerce, a subsidiary of MTN Group Fintech, after Bank of Uganda guided that MTN’s mobile money license does not permit marketplace operations.
MTN’s move is expected to challenge Jumia’s dominance in Uganda’s e-commerce market, with existing platforms largely concentrated in urban centers.
However, Uganda Communications Commission warned MTN to obtain necessary courier licenses before launching door-to-door delivery services.
Market by MoMo will offer prepaid orders, holding payment until products are delivered and verified by customers.