Recent data from the May Migration and Development Brief shows that remittance flows to Uganda declined by 26 per cent, from US$1.4 billion in 2019 to US$1.1 billion in 2020.
Yet despite the decline, Uganda was ranked among the top ten recipient countries in sub-Saharan Africa (SSA). The impact of the COVID-19 pandemic on the global economy and job security for Ugandan migrant workers around the world has reduced the amount of money they are sending back home to their families. But remittances still provide crucial support for some of the world’s poorest people.
For millions of households that depend on remittances, the decline only underscores the role these private transfers of funds play in safeguarding their food security, health care, savings and investment opportunities.
If no claim is lodged for a closed electronic or mobile money account within seven years, the National Payment Systems Act indicates, the unclaimed balances shall be transferred to Consolidated Fund
Financial Services | Mobile Money Separated From Telecom Operations | Enactment Of National Payment System ACT 2020 ugandandiasporanews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ugandandiasporanews.com Daily Mail and Mail on Sunday newspapers.
Daily Monitor
Thursday May 27 2021
Summary
Mobile money companies, which already operate payment service providers and payment systems operator platforms, will be required to obtain two licences each at Shs25m.
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Bank of Uganda has set Shs25m as the amount that telecoms will have to pay in annual licence to operate as a payment service providers or payment systems operator.
The two services are classified separately, which means that a telecom that wishes to operate both will have to pay a combined sum of Shs50m annually.
Telecoms are already operating as payment service providers and payment systems operators, which means they will be required to have the two licences. The fees are contained in the National Payment Systems Regulations 2021, which effectively split mobile money operations from telecommunication services.
Daily Monitor
Monday May 24 2021
Telecoms will now be required to register new businesses under which mobile money shall be operated. PHOTO | FILE
Summary
The licences, which were issued at the weekend by the National Payment System department at Bank of Uganda, will seek to ensure overall effectiveness and integrity of payment systems in the country, including mobile money.
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Mobile money has been split as a standalone business which, going forward, will be regulated by Bank of Uganda as a financial service.
The move, which effectively takes mobile money away from telecom service operations, regulated by Uganda Communications Commission, has now been implemented with the issuance of financial services operator licences to Airtel Money, which will trade as Airtel Mobile Commerce Uganda and MTN, which has placed its mobile money business under MTN Mobile Money Uganda.