MTN targets Uganda’s industrial parks with cashless payments

KAMPALA. MTN Mobile Money is seeking to expand its digital financial services into Uganda’s industrial parks, offering cashless payment systems, affordable transaction devices and merchant lending to businesses as the government pushes to deepen financial inclusion and digitise economic activities.

The company is also exploring partnerships with farmers’ cooperatives, transport operators, traders and businesses involved in agro-industrialisation and mineral extraction to expand the use of digital payments and improve access to financial services.

The proposals were discussed during a meeting between State Minister for Privatisation and Investment, Ms Aminah Mukalazi, and a delegation from MTN Mobile Money led by its General Manager, Mr Phrase Lubega.

Mr Keith Tukei, MTN Mobile Money’s General Manager for Regional Operations, said the company was willing to support the digitisation of industrial parks, building on its existing partnership with Kiira Motors, where it provides cashless payment services for electric buses.

He said the company was interested in extending similar arrangements to industrial parks and businesses operating in sectors such as artisan production, agro-industrialisation and mineral extraction.

The proposed partnerships would combine digital payment solutions with merchant lending services to help businesses manage transactions and access financing.

Ms Justine Icabala Ziruba, MTN Mobile Money’s Enterprise Segment Manager, said the company had already visited several industrial parks to promote cashless transactions and assess the needs of businesses.

She said the proposed support would include providing gadgets and SIM cards at affordable rates, with businesses allowed to pay in manageable instalments. The devices would come with cashless payment applications pre-installed to ease adoption.

Ms Ziruba said shifting transactions away from physical cash would improve security and reduce the risks associated with businesses and individuals carrying large amounts of money.

She also highlighted the company’s services, including free withdrawal charges for transactions of Shs300,000 and below, as well as bulk payment solutions that can be processed across different mobile money networks.

Beyond industrial parks

Ms Mukalazi welcomed the proposed partnership, commending MTN Mobile Money for its services and the public confidence it had built in the digital financial services market.

She cited the company’s partnership with Kiira Motors in facilitating payments for electric buses and initiatives such as Code Yo and Mali Yo, which target boda boda operators.

The minister urged the company to extend similar solutions to taxi operators and other players in the transport sector, arguing that digital payments could improve the management of business transactions across the industry.

However, she raised concerns about building trust in digital financial services, particularly among farmers, market vendors and businesses operating in informal markets, where cash remains a dominant means of exchange.

In response, the MTN delegation said it was engaging these groups to understand their specific challenges and develop digital financial products suited to their needs.

Ms Mukalazi also urged the company to bring farmers’ cooperatives on board, saying wider adoption of digital financial services could reduce delays in processing farmers’ payments and improve their access to financial services.

She further welcomed the company’s provision for reversing erroneous mobile money transactions, describing such safeguards as important in building customer confidence and encouraging more people to embrace digital payments.

The discussions come as the government seeks to strengthen agro-industrialisation, manufacturing and other productive sectors through increased investment and the adoption of technology.

Expanding digital financial services into industrial parks could help businesses reduce their dependence on cash, improve transaction security and simplify payments to suppliers, workers and service providers.

However, the success of the proposed initiative will depend on affordability, reliable digital infrastructure and the willingness of businesses, farmers and traders to embrace cashless transactions.