Earlier this week I spoke with Richard Mwami, Head of MTN Mobile Money in Uganda. Richard described the model that MTN has taken to market in the country, the agent network that has been built, and the growth they have experienced to date.

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Paul Leishman: Can you describe MTN Mobile Money in Uganda?

Richard Mwami: The service enables customers to buy airtime and send and receive money. Customers can send money to another registered user, or to an unregistered user on any of the other networks in Uganda, which are Zain, UTL and Warid. As of today, we now have 210,000 registered users and the average financial flows being processed through MTN Mobile Money over the last two months has been UGX 11 billion per month. The average transaction size we are seeing is UGX 60,000 (USD$31).

Paul Leishman: Please tell us about your agent network.

Richard Mwami: We have over 550 agents across Uganda, and they range from airtime dealers to pharmacists. Each of our agents is authorized to register new customers and they are encouraged to do so. We provide an incentive of 900/= per registration (USD$0.50), as well as commissions for performing cash in or out. Customers are not charged for the cash-in service, but agents do earn a commission from MTN. To become an MTN Mobile Money agent, each applicant must be a registered company and have operating capital worth UGX 1,000,000 (USD$520), which is held in an account with Stanbic Bank, as well as high quality premises. At this stage, we have a team of account managers that are responsible for going out and specifically recruiting agents.

Paul Leishman: How do you train your agents and monitor quality?

Richard Mwami: We have a team of 33 trainers based across the country that go by the renowned name of ‘Top Image’. They are an agency that we have contracted specifically for training and retraining agents. New agents undergo three days of training, which takes place on their own premises, followed by ongoing training.

In terms of monitoring the quality of our agents, this is the job of Mobile Money Regional Account Managers as well as trainers. Each agent is evaluated every two months and may be retrained depending on the results of the evaluation. Regional Account Managers are also responsible for communicating and monitoring agent liquidity.

Paul Leishman: Where can customers register for MTN Mobile Money?

Richard Mwami: Each of our 550 agents are authorised to register new customers. A photocopy of the customer’s ID is required for registration, so each agent must have a photocopier on their premises. Our registration form captures the customer’s full name, phone number, ID number and type, date of birth, nationality, District and LC 1 areas of residence and their signature. When it comes to registration, the lack of a national ID system in Uganda has been the biggest barrier to adoption.

Paul Leishman: Given that MTN Mobile Money enables customers to purchase airtime on their handsets, you presumably eliminate the need to pay commissions to airtime retailers in some instances. How much savings have you realised and how have you managed any potential conflicts with agents?

Richard Mwami: In each of the last 3 months, we have saved UGX 15 million in commissions (USD$7,770) that we otherwise would have paid to agents. Of course, we recognised that commissions are important to agents, so we have given them a 2% residual commission on airtime customers buy on the platform. The agent who registers a customer for mobile money gets this residual.

Paul Leishman: Tell us a bit about the ‘test and approval’ period you went through with the Bank of Uganda.

Richard Mwami: This was a trying time, but we definitely made the most of it to prepare. For example, by the time the green light had been given, we had already built a good network of agents to serve customers.

Paul Leishman: How would you describe the regulatory environment for mobile money in Uganda?

Richard Mwami: The Central Bank of Uganda is supportive of this initiative. Our agents (who are not bank branches) maintain an escrow account at Stanbic Bank, but they are allowed to open new customer accounts and perform cash in/out. There are limits on customer accounts: the daily transaction limit is UGX 1,000,000 (USD$520) and the maximum account balance is UGX1,000,000 (USD$520).

Paul Leishman: Thanks, Richard.