Device financing is transforming lives in Uganda by providing ordinary citizens with affordable access to smartphones and other essential tools. Through flexible, pay-as-you-go payment plans, companies are helping Ugandans start and grow businesses, increase household incomes, and access the digital services needed to thrive in today’s economy.
The ability to own a smartphone is a game-changer for many Ugandans. It allows entrepreneurs to expand their businesses beyond local markets, manage finances digitally, and connect with customers more effectively.
“For many households, owning a smartphone through M-KOPA has been a game-changer. Entrepreneurs can now grow beyond local markets, students can access educational resources previously out of reach, and families can benefit from mobile banking and financial services that were once inaccessible,” said Margaret Mugala, Marketing Lead at M-KOPA Uganda.
Mugala noted that Small business owners are using these devices to manage inventory, communicate with clients, and coordinate deliveries. Similarly, young people are exploring remote work and freelance opportunities, turning their smartphones into tools for personal and economic growth.
“By turning smartphones into gateways for economic and personal growth, M-KOPA is helping Ugandans connect with the world, improve household incomes, and contribute to broader national development,” she said.
It should be noted that small and medium-sized enterprises (SMEs) are the backbone of the private sector in Uganda, contributing over 90% of its output and employing millions. However, they often face major challenges in accessing capital, particularly when trying to acquire assets vital for business growth, such as smartphones.
However, according to Mugala, “Asset financing has become a critical tool for financial inclusion in Uganda. Our approach focuses on the potential of the business rather than rigid requirements, giving entrepreneurs a real chance to succeed.”
She explained that these innovative financing models simplify the process through mobile technology, allowing entrepreneurs to apply for loans, make payments, and manage accounts directly from their phones.
“The impact is already evident. Historically underserved groups, especially women and youth, are acquiring essential tools like smartphones to grow their businesses. Smartphones provide access to digital marketplaces and business apps, allowing entrepreneurs to reach new clients and expand their markets,” she explained.
Government initiatives are also playing a crucial role in supporting this digital transformation. By investing in ICT infrastructure, the government is expanding connectivity and enabling more citizens to participate in the digital economy.
According to Dr. Chris Baryomunsi, Minister for ICT and National Guidance, the ICT sector has created 1.5 million jobs and attracted $180 billion in annual investments. Baryomunsi acknowledged that while challenges like the high cost of smart devices remain, these tools are vital economic drivers that empower people to start and grow businesses.
“We have improved connectivity and extended internet access to many parts of the country. However, we also recognize that these devices are economic drivers, because they empower many people to start and grow businesses,” Baryomunsi stated.
He said by combining accessible asset financing with government efforts to improve technology infrastructure, asset financing companies are helping SMEs overcome financial barriers and drive economic transformation from the ground up.
M-KOPA’s 2023 Impact Report highlights the direct link between device access and economic empowerment. The report shows that 82% of customers reported an improved quality of life after using M-KOPA products, with 62% indicating that their devices help them generate income.
According to Mugala, pay-as-you-go models are making technology accessible even to low-income households, fostering financial inclusion and giving Ugandans the tools they need to manage their finances, grow their businesses, and unlock their full potential.
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