Device financing is transforming lives in Uganda by giving ordinary citizens affordable access to smartphones and other essential tools.
Flexible, pay-as-you-go payment plans are helping Ugandans start and grow businesses, increase household incomes, and access critical digital services.
Owning a smartphone has become a game-changer for entrepreneurs, students, and families. It allows business owners to expand beyond local markets, manage finances digitally, and communicate effectively with clients.
“For many households, owning a smartphone through M-KOPA has been transformative. Entrepreneurs can grow beyond local markets, students can access educational resources, and families can benefit from mobile banking and financial services previously out of reach,” said Margaret Mugala, marketing lead at M-KOPA Uganda.
Small business owners are using smartphones to manage inventory, coordinate deliveries, and engage with clients, while young people are exploring remote work and freelance opportunities.
“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 national development,” Mugala added.
Small and medium-sized enterprises (SMEs) are Uganda’s private sector backbone, contributing over 90% of output and employing millions.
Yet many face challenges accessing capital, particularly for acquiring assets like smartphones.
“Asset financing has become a critical tool for financial inclusion. Our approach focuses on business potential rather than rigid requirements, giving entrepreneurs a real chance to succeed,” Mugala explained.
These innovative financing models leverage mobile technology, allowing entrepreneurs to apply for loans, make payments, and manage accounts directly from their phones.
Historically underserved groups, especially women and youth, are now accessing tools that expand their markets and improve incomes.
Government initiatives are also driving this digital transformation. Investments in ICT infrastructure have improved connectivity, enabling broader participation in the digital economy.
Dr Chris Baryomunsi, Minister for ICT and National Guidance, said the sector has created 1.5 million jobs and attracted $180 billion in annual investments.
He noted that while smart devices can be costly, they remain vital economic drivers.
By combining accessible asset financing with improved technology infrastructure, companies like M-KOPA help SMEs overcome financial barriers and drive economic growth from the ground up.
M-KOPA’s 2023 Impact Report shows that 82% of customers reported improved quality of life after using its products, and 62% indicated that their devices help generate income.
“Pay-as-you-go models make technology accessible even to low-income households, fostering financial inclusion and giving Ugandans the tools to manage finances, grow businesses, and unlock their full potential,” Mugala said.