Zofi Cash Weekly: Edition XLVIII

Welcome to the 48th edition of the Zofi Cash Weekly newsletter. In this issue, we delve into recent developments in Uganda's mobile payment landscape, where MTN MoMo has introduced charges for MoMo Pay transactions, altering the previous fee-free incentive. The article explores the broader context of high withdrawal fees imposed by dominant players like MTN Mobile Money and Airtel Money, raising questions about the feasibility of a cashless society in Uganda. Shifting gears, we shed light on Uganda's strides towards financial literacy, emphasizing its critical role in empowering individuals to make informed financial decisions. Lastly, we examine the significant rise in Uganda's urban population, hitting 26.16% in 2022, highlighting the implications and potential benefits of strategic urbanisation for economic growth, wealth creation, and enhanced quality of life.

Recently, MTN MoMo announced the charges that will be incurred by its MoMo Pay users when paying for fuel across the country. Many users had been drawn to using MoMo Pay instead of cash due to the transactions not incurring any fees. But this was most probably a go-to market ploy, with fees now being incorporated in the transactions.

Also, the two dominant Mobile Money players, MTN Mobile Money and Airtel Money are known for their high withdraw fees. This has led many people to believe that a cashless society is a far flung concept for Uganda. In this article, we break down why a cashless society is an attractive proposition for any country, and how Uganda can get there. Read the full article here.

In today’s fast-paced, consumer-driven society, financial literacy is more important than ever. It is a critical life skill that helps individuals make informed decisions about money management, budgeting, saving, investing, and debt management. But where does one learn these skills? The answer is simple: at home. The question, “Why is it important for parents to teach financial literacy to their children?” is one that needs to be addressed with urgency and seriousness. In this article, we broke down why financial literacy is important for children. Read it here.

Uganda's urban population has seen a significant rise, peaking at 26.16% in 2022, marking a key trend in the country's urbanisation process. This complex process, characterised by rural to urban migration, brings about economic, social, and cultural shifts. However, global comparisons of urbanisation rates can be complex due to differing definitions across countries. Urbanisation, a pivotal phenomenon, has far-reaching implications for a country's development. Urban areas, being the epicentres of economic activities, infrastructure, and services, foster innovation, employment, and improved living standards.

They also serve as hubs for industries, commerce, and technology, contributing to increased productivity. Moreover, urbanisation can enhance education, healthcare, and overall quality of life. However, effective urban planning is crucial to tackle challenges like housing, transportation, and environmental sustainability.For Uganda, strategic urbanisation management can yield significant benefits. As the urban population expands, opportunities for economic productivity and wealth creation increase.

Urban centres can attract investments, stimulate entrepreneurship, and facilitate diverse economic activities. They can also improve the delivery of essential services like healthcare, education, and infrastructure. To maximize urbanisation benefits, Uganda needs to implement effective urban planning policies, invest in infrastructure, and address social and environmental challenges linked to rapid urban growth.

About Zofi Cash.

Zofi Cash is a digital financial platform that takes care of employees’ financial emergencies before payday by providing instant salary advances. Download our app from the Google Play store and Apple Store to get started or visit our website here. Follow our blog for articles about personal finance news and the work that we do.