Analysis of mobile money performance in Uganda. The case of Kampala District

Abstract

The purpose of the study is to analyze performance of mobile money businesses and challenges they face in Uganda basing on the following objectives; to examine the level of mobile money performance in Uganda, to find out challenges faced by mobile money businesses in Uganda, and to recommend strategies for improving mobile money businesses in Uganda. The study design was cross sectional. Quantitative and qualitative approaches were employed to gain an in-depth understanding on an analysis of mobile money performance in Uganda. The formula of Krejcie Morgan (1970) was used to determine a sample size of 45. Stratified sampling was used to raise the required sample size. Respondents were grouped in Strata and purposive sampling was used in each stratum of the three divisions, Rubaga division, Nakawa division, and Kawempe division in Kampala district. Data was collected by the use of questionnaire and interview guide. Frequency tables and graphs were drawn using Statistical Packages for Social Scientist (SPSS) version 16, and analysis made there on. Findings revealed that Mobile money businesses experience low profitability levels, the fact that they take long to increase on their stock, number of branches, cash for daily business transaction, retained earnings, and number of customers. Mobile money businesses face many challenges and some of them include competition, lack management skills, lack of information about what is working, lack of a plan, lack of internal controls, and lack of focus is a real challenge. Staff members of mobile money business need to train in management skills for the success of the business, there is need to consult companies which provide mobile money services, there is need for proper internal controls, and Mobile money businesses need to employ professionals for their success.