MTN Rwanda, through a partnership deal to be signed by end of October this year, will integrate its mobile money service with that of MTN Uganda, allowing subscribers to send and receive money to and from the two countries.
The integration between the two companies is aimed at offering an easier and more affordable way for users to carry out money transfers with their friends and relatives in Rwanda and Uganda. It will also help ease business transactions for traders operating between the two countries.
MTN Rwanda said the new move for its mobile money service will help in reducing the cost of transactions as well as improve trade across the borders of Rwanda and Uganda.
The move by the telecom comes months after Tigo, a rival mobile service provider in the country kicked off its cross-border mobile money operations with Tanzania through a collaboration with the sister company, Tigo Tanzania.
MTN Rwanda, earlier this week lowered its roaming charges by implementing the One Network Area concept within the East Africa Community (EAC).
Telecoms across the region are working towards new avenues and strategies that will see them increase their earnings to enable them rise above the poor run they have experienced over time.
MTN Rwanda has increased its subscriber base from 3.5 million users to 4.5 million in the third quarter of the financial year, attracting a total of Rwf96.5 billion ($14.5 million) push from the mobile money service. This figure shows a 9% growth from the Rwf80 billion ($12 million) achieved in the second quarter.
The central bank monetary policy and financial stability reported that mobile money payments had attracted a 94 per cent increase with the number of transactions increasing from over 21 million to over 43 million.
This new development by MTN Rwanda aims at increasing the telecom’s subscriber base and offering traders an opportunity to do business transactions at a better cost and more effectively.
Most traders in the country have been using informal money transfer agents to send and receive money from suppliers and buyers which is expensive and time consuming.