By Silvia Nyambura
MTN Uganda in partnership with Commercial Bank of Africa (CBA) has today launched ‘MoKash’ a micro savings and loans product available for customers on MTN Mobile Money. The new product will allow subscribers to save and take loans on short term basis. On this platform, no minimum balance is required, there are no account charges and one can borrow from a minimum of Ushs 3,000 up to a maximum of Ushs 1 million.
Speaking during the launch event held at The Kampala Serena Hotel this morning, MTN’s new CEO Wim Vanhelleputte said, “We believe that we are aiding financial inclusion and thereby will add substantial value to the development and social well-being of Ugandans across the country. With MoKash Ugandans can now securely save their money for future use in interest bearing savings accounts, or they can take advantage of access to micro loans.”
Customers wishing to access these micro loans for their business or for personal reasons will be able to apply directly from their mobile phones by dialing *165*5#.
“Depending on the customer’s level of use of all MTN’s services, like Voice, Data and Mobile Money, they will be assigned a loan limit. They can then, when needed, access the full loan amount or smaller amounts against this loan limit by using their mobile phones. A customer’s loan limit is also linked to their activity on their MoKash account so the more and longer they save money, the better their loan limit will be,” he added.
Sam Odeke, the CEO of CBA Uganda explained that Ugandans have an informal savings culture preferring to keep their money at home.
“MoKash not only delivers financial empowerment but provides a platform where savings are formalized so customers can enjoy protection of deposits while earning interest. A formal savings culture contributes to the country’s GDP improving the economy,” he said.
MoKash comes after the success of CBA Bank Kenya’s version M-Shwari which was introduced in November 2012 in partnership with telecom giant Safaricom as well as CBA Tanzania’s M-Pawa. According to CBA Bank Group General Manager for New Business Ventures Eric Muriuki, over 15 million customers in Kenya and 5 million in Tanzania are using these services to access credit and save money.
