To operate as a mobile money provider in Uganda, a company must first obtain authorization from the Bank of Uganda (BoU) as a Payment Service Provider (PSP). This process is governed by the National Payment Systems Act (2020) and the Mobile Money Guidelines (2013).
The Bank of Uganda regulates Mobile Network Operators (MNOs) indirectly through their partner banks. The BoU can revoke the authorization of a partner bank in cases of non-compliance or irregular conduct by the mobile money provider.
The licensing process has three main stages:
- Name Approval
- Application for Authorization
- Final Authorization and Licensing
Stage 1: Approval of Name
A) Company Name Approval
- Schedule a preliminary meeting with Bank of Uganda to discuss requirements.
- Submit at least three proposed company names in order of preference to the BoU.
- Once approved, reserve the accepted name with the Registrar of Companies.
- The name approval remains valid for 12 months, within which authorization must be obtained.
B) Product Name Approval
- Submit the proposed product name (e.g., “MTN MoMo”, “Airtel Money”) for review.
- Approval is subject to verification of intellectual property rights.
- The approved name may only be used after the final authorization is granted by BoU.
Stage 2: Application for Authorization
After name approval, the company submits a certified application with the following documents:
Mandatory Attachments
- Certified copy of the Certificate of Incorporation and Memorandum & Articles of Association showing core capital as per BoU requirements.
- Certified copy of Tax Identification Number (TIN) Certificate.
- Certified copy of a valid license from the Uganda Communications Commission (UCC).
- Management Agreement if operating under a custodial trust arrangement.
- Detailed Business Plan including:
- Company background and governance structure.
- Ownership and shareholding structure.
- Audited financial statements for the last 3 years.
- Profiles of directors and senior management.
- Internal control systems and risk management framework.
- Anti-Money Laundering (AML) and Counter Terrorism Financing policies.
- Customer protection and data privacy protocols.
- Proof of capital adequacy through a bank statement or government securities.
- Letter of No Objection from the home regulatory authority (for foreign subsidiaries).
- Credit Reference Bureau report and URA tax compliance certificate.
- Terms and conditions for agents, cash merchants, and customers.
- Fit and Proper Forms for all directors, shareholders, trustees, and managers.
Capital Requirements
The applicant must demonstrate that it meets the minimum core capital as specified under the First Schedule of the National Payment Systems Regulations.
Capital must be held in a licensed financial institution or in Government Treasury Bills or Bonds not under lien.
Application Fee
- A non-refundable fee of UGX 5,000,000 payable to the Bank of Uganda by banker’s cheque or other prescribed modes.
Stage 3: Authorization
Once all documentation is submitted and verified:
- BoU will evaluate the application and may request additional information.
- If approved, the Bank will issue an authorization within 7 working days after receipt of the final authorization fee.
- If rejected, the applicant will receive written feedback with reasons and conditions for re-application.
- Upon approval, the applicant is officially permitted to commence mobile payment operations under supervision of the BoU.
Required Documents
- Certificate of Incorporation & Articles of Association
- UCC operating license
- Tax Identification Number (TIN) Certificate
- Valid company registration
- List and qualifications of directors
- Business plan and governance policy
- Risk management and compliance documentation
Office Locations & Contacts
Bank of Uganda – Head Office
Plot 37/45 Kampala Road, Kampala, Uganda
P.O. Box 7120, Kampala
+256 414 258441 / 6
+256 414 230878 / +256 414 233818
[email protected]
Bank of Uganda Website
Eligibility
To qualify for a mobile money license in Uganda, an applicant must:
- Be a registered limited liability company in Uganda.
- If not a BoU-licensed institution, partner with a licensed commercial bank.
- Demonstrate financial capacity and technical competence.
- Possess tested and secure mobile payment systems.
- Provide a risk management proposal and internal control framework.
Fees
- Application Fee: UGX 5,000,000 (non-refundable)
- Authorization Fee: Determined by the Bank of Uganda upon approval
Validity
The mobile money operator license remains valid as long as the company maintains regulatory compliance and fulfills renewal obligations under the National Payment Systems Act.
Processing Time
The approval and authorization process typically takes up to 60 days from submission of a complete application.
Need for the Document
The authorization ensures that mobile money companies operate legally and maintain high standards of safety, transparency, and accountability. It also supports:
- Financial inclusion across rural and urban areas.
- Integration of mobile banking and fintech services.
- Consumer protection and secure money transfer platforms.
Mobile money services have transformed Uganda’s financial landscape since 2009, contributing significantly to Vision 2040 goals of economic inclusion and digital transformation.
Information Which Might Help
- Uganda’s mobile money market surpassed 21 million users by 2015 and continues to grow.
- Regulation by BoU ensures consumer confidence and financial system stability.
- Partnerships between banks and telecoms are crucial for operational compliance.
- The framework allows innovation while mitigating risks such as fraud, money laundering, and system failure.
