KAMPALA, Uganda — Mobile money services have become a leading source of consumer complaints in Uganda, according to a recent report by CONSENT Uganda, a consumer advocacy group. The 1st Annual Consumer Voice Report, launched jointly with the Financial Sector Regulatory Framework Review Report, highlights the challenges faced by consumers in the digital finance sector.
The report found that mobile money services, widely used for transactions, savings, and payments, have experienced a significant increase in complaints. Consumers cited fraud by scammers, delays, and failed transactions due to network downtimes as major issues.
“Mobile money has the largest number of complaints amongst consumers,” said Alexander Ssensikombi, an advocate. “Many customers have expressed frustration with telecom companies’ inability to promptly address issues reported to them.”
CONSENT Uganda’s Team Leader, Henry Kimera, noted that the organization began tracking consumer complaints in October 2023, revealing a growing trend in issues affecting users.
The report on digital finance highlights increasing consumer concerns, particularly the rising incidence of fraud and scams. “The ‘Bafere’ scams, where individuals claim to have sent money incorrectly and request refunds, are a major issue,” Kimera said.
Experts emphasize the need for enhanced regulation, improved customer service, and stronger fraud-prevention measures to restore consumer confidence.
Key Findings:
- Mobile money services account for the majority of consumer complaints.
- Fraud and scams are significant concerns for consumers.
- Network failures and delays are common issues.
- Regulatory agencies must coordinate to enforce customer protection laws.
- Improved customer service and fraud prevention are crucial.
Consumer Concerns Beyond Mobile Money
CONSENT Uganda also launched a report on consumer voices regarding general goods and services, highlighting concerns about food safety in Uganda. The report found:
- 31% of complaints in the services sector were related to transport.
- 57% of complaints in the goods category were about substandard products.
- Sale of uncertified products is a significant issue.
Ronnet Ayebare, Research and Knowledge Management Officer at CONSENT, noted that the organization collected 11,154 complaints from October last year to date.
Restoring Consumer Confidence
Experts urge regulatory agencies to coordinate efforts to enforce customer protection laws and maintain standards.
“When we were doing the desk review, we found laws in the Bank of Uganda, microfinance institutions that can protect consumers. Now the issue is we need to see how we get them implemented,” Kimera said.
The reports provide valuable insights into the challenges faced by consumers in Uganda’s digital finance sector and broader market.
Fact Box:
– 1st Annual Consumer Voice Report launched by CONSENT Uganda
– Financial Sector Regulatory Framework Review Report focuses on digital finance
– Mobile money services account for majority of consumer complaints
– 11,154 complaints collected by CONSENT Uganda from October 2023 to date
