Study Finds 80% of Ugandans Believe Mobile Money is Too Expensive

The Twaweza initiative announced that a research study it conducted in Uganda revealed that almost 79% of citizens believe that mobile money services are too expensive to use and 57% had reduced their usage since being recently burdered by a new 0.5% tax on mobile money withdrawals. 1,905 people were polled during November 2018, several months after the controversial and "erroneous" 1% mobile money tax was passed by Parliament and implemented in July, later reduced to the 0.5% rate effective in November.

MTN Uganda reported a 30% decline in mobile money revenues during August, the month following the July mobile money tax implementation. The Bank of Uganda reported that the value of mobile money transactions in the country during the first two weeks of July had declined by Shs 672 billion (USD167,440,674). Researchers and financial inclusion advocates have argued that the mobile money taxes disproportionately impacts the poor and that other sources of government revenues should be pursued.

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