Pre Mobile Money Tax: BOU registered significant growth in FY2017/18!
Today, there is a new vote and amendment of the Mobile Money in the Parliament. They voted like blind drones in the last go-around and most likely to do the same. With a little flair and jippo, hoping the hungry hippo isn’t mad. However, the reality remained, that a growing market, a market where the revenue and natural growth could have resided. The National Resistance Movement and their President Yoweri Kaguta Museveni, went in like bulldozer. Hoping it wouldn’t destroy it, but actually gain. It is foolish, but that is how they act.
That is why it is special to read again, what where there, but what is now hurt:
“Mobile money services continued to register significant growth in the year ended June 2018. The number of mobile money transactions increased to 1.3 trillion for the year to June 2018 from 1.1 trillion transactions in the prior year. The corresponding value of mobile money transactions increased to UGX 73.1 trillion from UGX 52.8 trillion in the previous year. However, the number of registered mobile money users decreased from 22.8 million in June 2017 to 22.7 million as at end of June 2018, largely attributed to the deregistration of mobile money accounts whose users had not submitted the requisite KYC credentials to maintain their registration status. Growth of mobile money activity has significantly benefited from diversified usage beyond the initial remittances, airtime purchases and bills payments. New developments such as bank account to mobile money wallet and vice versa, have significantly changed the conduct of banking business and increased convenience of access to banking services. In addition, customers are now also able to save and borrow through their mobile money accounts which has positive knock-on effects to financial intermediation in general” (Bank of Uganda Annual Report 2017/2018).
We know post- June 2018, that the landscape has changed. Even mere month after the Mobile Money tax, the usage went down and the companies we’re sending red-signals to the authorities. The added revenue stream to government, didn’t met up to par or the levels anticipated, as people changed their pattern and usage of money. Because, who want to pay double or triple tax for sending money? Than, they rather hire a boda to drive the money from town to town. It can even be cheaper, than paying the Uganda Revenue Authority or the MTN for their services.
Clearly, this little snippet of the report from the Bank of Uganda, should show the Members of Parliament, the importance of Mobile Money. Which, they had no trouble with interfering in and also possibly hurt. This are for the ones that cannot afford ordinary banking services or for the ones, in the villages that are too far away to even register their cash there. They should matter to the MPs, but they didn’t before, as they took this informal banking services through the Cellphone providers and added more pain. Instead of finding ways to grow it and expand. So more people could benefit from the new money unleashed on the market this way. Peace.