Enabling financial inclusion for the unbanked : in pursuit of a regulatory framework for mobile money in Uganda

Abstract

The expanding capabilities of the mobile phone have ushered in new and innovative products such as mobile money, a ubiquitous tool that allows individuals to transact money without formal bank accounts. With potential to reach millions of customers even in the remotest areas, mobile money is playing a pivotal role in promoting financial inclusion, an important policy issue that continues to attract global interest since it is perceived as a reliable tool for poverty alleviation and economic development. This research has revealed that mobile money has brought immense benefits, but has arisen with several challenges that are not adequately addressed by the current legislation in Uganda. The absence of coherent policy and regulation for mobile money in Uganda may be an impediment to further growth of mobile money if it is to deliver on its promises for financial inclusion. The study thus undertook a comparative study to draw from experiences in more mature markets that have established legal frameworks, making recommendations for an overarching framework for mobile money in Uganda.