Mobile Money Agent Registration In Uganda
Mobile money agent means any third party acting on behalf of a mobile money service provider to deal directly with customers. A service in which the mobile phone is used to access financial services. Mobile money transfer. A movement of value that is made from a mobile wallet, accrues to a mobile wallet, and/or is initiated using a mobile phone.
Requirements For Mobile Money Agent Registration In Uganda
Be a registered limited company or sole proprietor and your business must have been in existence for at least one year
Original and copies of identity card or passport for the company directors
Have permanent or semi-permanent physical premises from where to operate
Have a certificate of business incorporation
Letter of introduction for the Local Council 1 (LC1)
Contact details of your company
Have at least three months of business bank accounts
Have a copy of articles of association or memorandum of association
Proposed outlets for inspection by Telecom’s regional representative
Initial startup capital investment of Ush 1,500,000
Requirements to Become an Airtel Mobile Money Agent
Proof of residence
Recommendation letter from LC1
Passport size photo of the applicant
Subscriber registration form
Trading licenses
Subagent application and registration forms
Startup capital of Ush 2,000,000
Requirements to Become an Africell Mobile Money Agent
National identity card
LC1 letter
Business registration form
Two passport size photos of the applicant
Startup capital of Ush 50,000
Duties Of A Mobile Money Agent In Uganda
Registering mobile money customers
Depositing money into mobile accounts for the registered mobile money customers
Processing cash withdrawals by registered mobile money customers
Selling airtime to customers
Complying with mobile money regulations
Customer education
Start A Mobile Money Business In Uganda
Apart from the requirements that you need to meet to register as a mobile money agent or aggregator, you will also need the following to run your business comfortably.
Have two transition lines. You should have MTN and Airtel lines because they have a large market share.
Have a mobile phone with dual features to operate two lines.
Rent a stall or a room. You need a secure place where you can operate your business. Ensure that it is visible by foot traffic.
Have a transaction book
A secure and lockable desk to keep your money
Requirements to become an MTN Uganda Mobile Money agent
For MTN Uganda, the start-up capital is 1,000,000/- for one who wishes to be attached to a master agent and 1,500,000/- for one who wishes to be an independent agent. A master agent acts more like a supervisor.
Your business entity must be registered as a LIMITED company or a sole proprietorship that has existed for a period not less than one month. MTN only accepts sole proprietorship applications from rural areas apart from the well served areas.
You must have physical permanent or semi-permanent premises from which to operate the business, counter layout. To this you are required to attach a Photocopy of Certificate of Incorporation or sole proprietorship registration documentation and certificate of registration if the name on the trading license is a business name.
In addition, a photocopy of Certified Memorandum and Articles of Association; one month Company Bank Statement/Bank statement if the trading license is in the names of the business owner; and photocopy of Valid IDs of all directors (making up at least 50%) shareholding are also a requirement.
You are also required to present an official email and phone contacts, letter of introduction from the local Council, an existing business turnover of at least Ugs 2 million per month, a map and photos of the agent premises, a receipt representing payment for a company search, and a registered board resolution to start the Mobile Money agency business – with a letter of Introduction of appointed Handlers from the directors.
You are also required to make a minimum float deposit of UGX 1,000,000, maintain a minimum Float balance of UGX 500,000, and a minimum Cash balance of UGX 500,000. To this you attach a signed Exclusivity/compliance agreement.
Get A Transaction Line As A Master Agent Or Aggregator In Uganda
You can work as an aggregator or a master agent. An aggregator is authorized to recruit mobile money agents. Master agents purchase and manage e-money from Mobile Network Operators and then sell them to agents.
To become an aggregator or a master agent, you need to fill in an agent Agreement form, exclusivity agreement form and agent application form. In addition, you will need training and branding for your business.
Agents are paid commissions, and the commissions depend on the master agents. Agents have to forego 10% of their income to the Uganda Revenue Authority.
As an aggregator or master money agent, you are responsible for recruiting agents into your territory. You will need to go through the bidding process by presenting an identity card, get a recommendation letter from the local council, and fill in an application form. You will need to make a deposit of Ush 80,000 and have a starting float of at least Ush 2,000,000.
Start A Profitable Mobile Money Business In Uganda
To start a mobile money business in Uganda, you need to understand how mobile money works and how you can succeed in this business. This section will provide you with useful tips you need to venture into the business.
Draft a Business Plan
The success of any business depends on how well it is planned. You need to do market research and find out the money services in high demand and those you can provide. Consider the security of the area you intend to operate your business, the market share, competition, availability of customers, cashflow projections, risks and strengths of the business. If you don’t know how to write a business plan, you can hire a professional to help you.
Choose a Good business Location
Mobile money business works well in areas with high influx of people like in towns, near institutions like colleges and hospitals. Such an area will maximize your profits. The more customers you serve, the higher your commissions.
Get Business Permits and Licenses
You need to secure business licenses to operate a legal mobile money business in Uganda. You need to get a certificate from the Uganda Revenue Authority for tax purposes. You may also need a business trading license from authorities.
Get Started and Advertise Your Mobile Money Business
Once you have secured the necessary business permits and licenses, you can launch your business. Provide quality customer service, and your customers will keep on coming back and refer more customers to your business. You can advertise the business using posters and business cards.
Profitable Of Mobile Money Business In Uganda
Mobile money business in Uganda is profitable if you follow the right strategies in starting and running the business. The level of profitability will also depend on factors such as the startup capital, location, number and types of transactions in a given day/week/month.
Final Word On How To Become A Mobile Money Agent In Uganda
The mobile money business is a profitable business in Uganda. Besides, you can provide other income-generating services like selling sim cards, airtime, soft drinks, and sim card registration. With the growing demand for mobile banking, this is a business you are unlikely to make losses with a suitable business location.