Uganda’s booming tourism sector, a key driver of the economy and a leading foreign exchange earner, is set for a significant digital leap forward. This comes after MoMo by MTN Uganda and the Uganda Hotel Owners Association (UHOA) officially forged a strategic partnership on Friday, August 1, 2025, marked by the signing of a Memorandum of Understanding (MoU).
This collaboration is set to revolutionise the hospitality industry through seamless, digital financial solutions, propelling Uganda closer to its goal of becoming a premier global tourism destination.
Tourism is a cornerstone of Uganda’s economy, contributing an estimated 3.2% directly to GDP and over 7.2% to total employment in 2024, generating USD 1.28 billion in international tourism receipts.
With an ambitious target of exceeding 1.6 million international tourist arrivals by the end of 2025, the sector’s growth hinges significantly on enhanced efficiency, accessibility, and improved customer experience. This new partnership thus directly addresses these needs.
Speaking at the MoU signing, Dennis Kakonge, General Manager of Corporate Services and Company Secretary at MTN Uganda, emphasised the significance of the collaboration.
“It’s an honour and privilege for us to partner with the Uganda Hotel Owners Association. This is the beginning of a strategic and timely partnership. We believe in walking this journey together to enable a smarter, more connected, and financially inclusive hospitality sector,” he stated.
The event, graced by Juliana Kagwa, CEO of the Uganda Tourism Board (UTB), and Susan Muhwezi, Chairperson of UHOA, Yogi Birigwa, the President, Confederation of Uganda Tourism Associations (COUTA) and others, underscored the high-level commitment to this transformative initiative.
Hospitality and Digital Financial Inclusion
The MoU signifies the beginning of a shared journey focused on promoting financial inclusion, enabling smart, real-time hotel transactions, and supporting comprehensive digitisation across Uganda’s vibrant tourism and hospitality landscape. With over 780 hotels under the UHOA umbrella, the potential for widespread impact is immense.
Uganda boasts a remarkable mobile money penetration, with 66% of adult Ugandans using mobile money services (compared to 13% using commercial banks), and mobile money transactions amounting to 94% of the country’s GDP in 2021. This robust mobile money ecosystem provides the perfect foundation for the digital transformation envisioned by this partnership.
Key Impacts on Uganda’s Tourism Sector
This partnership between MoMo and UHOA will profoundly impact Uganda’s tourism sector in the following ways;
Seamless Digital Payments and Convenience
The core of this partnership lies in integrating MoMo’s payment gateway into hotel operations. This means hotel guests can book rooms and pay securely using mobile money, eliminating the need for cash.
“With this solution, guests can pay from anywhere, and hotels can receive payments instantly and securely,” Kakonge explained.
He noted that this convenience is a game-changer for both domestic and international tourists, offering a modern and reliable payment method. For hotels, instant and secure payment receipt streamlines operations and reduces cash handling risks.
Enhanced Financial Inclusion
By embracing mobile money, hotels can cater to a broader segment of the population, including those who may not have traditional bank accounts but are active mobile money users. This promotes financial inclusion within the tourism value chain, benefiting local communities and small businesses.
Data-Driven Insights and Efficiency
Digitised transactions provide hotels with real-time data on bookings, payments, and guest preferences. This data can be invaluable for operational efficiency, marketing strategies, and personalised service delivery, helping hotels make informed business decisions.
Reduced Transaction Costs and Improved Security
Mobile money often presents a more cost-effective payment option compared to traditional banking channels, especially for smaller transactions. Furthermore, by reducing reliance on cash, the partnership enhances security for both guests and hotel operators.
Sustainable Tourism and Entrepreneurship
“We’re not just offering payment solutions, we’re co-creating systems that support sustainable tourism and entrepreneurship,” Kakonge affirmed.
He explained that by making transactions easier and more transparent, the partnership fosters an environment conducive to growth for both large hotels and smaller accommodation providers, as well as ancillary tourism businesses like tour operators and craft vendors.
Joint Marketing and Capacity Building
MTN Uganda is committed to supporting the partnership through training, feedback collection, joint marketing campaigns, and digital innovation.
This holistic approach will ensure that UHOA members are not only equipped with the technology but also with the knowledge and skills to leverage it effectively. Such joint marketing efforts will amplify Uganda’s appeal as a safe, convenient, and technologically advanced tourist destination.
As Stephen Mutana, Chief Strategy Officer at MTN Uganda, reiterated, this move aligns perfectly with MTN’s broader Mission 2025, which is “to build a fintech platform that powers inclusive growth and transforms the way Uganda does business.”
This strategic alliance between MoMo by MTN Uganda and UHOA is a critical step towards modernising Uganda’s tourism sector.
By embracing digital payments, it promises to enhance the visitor experience, empower local businesses, and contribute to Uganda’s journey towards becoming the ‘Pearl of Africa’ for a new generation of travellers.