M-KOPA Uganda has unveiled its groundbreaking “More Than a Phone” proposition. Launched to empower Uganda’s “Every Day Earners”—millions of workers who rely on daily incomes—this initiative redefines the smartphone as more than just a device. By embedding premium digital access with essential financial services, M-KOPA is driving financial inclusion and economic progress across Africa, with Uganda at the forefront of this revolution.
A New Paradigm for Smartphones
Traditional smartphones primarily serve as tools for communication and internet access. However, M-KOPA’s “More Than a Phone” offering transforms these devices into comprehensive financial gateways. Each smartphone comes integrated with M-KOPA’s Smart Money Platform, which provides affordable credit, health insurance, and device protection. This innovative approach addresses the unique challenges faced by Uganda’s daily wage earners, who often struggle with the high upfront costs of quality smartphones and the financial burdens of repairs or medical emergencies.
By combining technology with financial services, M-KOPA enables its customers to do more than stay connected—they can build credit histories, access micro-loans, and secure essential insurance, all through their smartphones. This holistic model empowers users to expand their income-generating opportunities, whether by running side businesses, accessing digital wallets, or leveraging financial tools to invest in their futures. As Brendah Nambalirwa Tzadok, General Manager of M-KOPA Uganda, stated, “Our goal has always been to deliver more than just access to technology. We want to unlock real, tangible progress in the lives of our customers.”
Addressing Real-World Challenges
For many Ugandans, owning a smartphone is a significant financial hurdle. The high cost of devices, coupled with the risk of costly repairs or unexpected medical expenses, can make digital participation seem out of reach. M-KOPA’s solution is a flexible, pay-as-you-go financing model that aligns with the daily cash flows of informal workers. Customers pay a modest deposit—approximately UGX 3,500 (around $0.95)—followed by daily micro-payments as low as UGX 50 (about $0.01) over a year. This approach makes premium smartphones, such as the M-KOPA X20, X2, M10, and S34 models, accessible to millions who would otherwise be excluded from the digital economy.
What sets “More Than a Phone” apart is its bundled benefits, which add significant value beyond affordability. Each smartphone purchase includes free hospital insurance through a partnership with insurtech firm Turaco. This coverage provides up to UGX 750,000 per year for hospitalization and reimburses UGX 25,000 per night for up to 30 nights, provided customers maintain an 80% or higher repayment rate on their smartphone loan. Additionally, eligible customers purchasing Samsung or M-KOPA-branded phones receive one free screen repair within the loan period (6 or 12 months), with a fast 10-day turnaround using high-quality replacement parts. “A cracked screen or unexpected medical bill shouldn’t derail someone’s progress,” Nambalirwa Tzadok emphasized. “More Than a Phone is how we walk alongside our customers, every day.”
A Catalyst for Digital and Economic Inclusion
Since entering the Ugandan market, M-KOPA has financed smartphones for hundreds of thousands of customers, aligning with Uganda’s national goals of digital inclusion and inclusive economic growth. The company’s pay-as-you-go model, initially pioneered in the solar energy sector, has proven highly effective in scaling access to technology and financial services. By leveraging AI-driven analytics and payment data, M-KOPA builds individualized credit profiles, enabling customers to graduate to additional services like digital loans and e-motorbike financing. This data-driven approach ensures strong repayment rates while fostering long-term financial relationships.
M-KOPA’s impact extends beyond individual empowerment. By assembling its smartphones at a Nairobi-based facility—Africa’s largest by volume—the company has slashed import costs, reducing Kenya’s smartphone import bill by 99% to $1.65 million in the first half of 2024. Plans are underway to export Kenyan-made devices to Uganda, taking advantage of the East African Community’s common market protocol, which eliminates tariffs on regionally manufactured goods. This move is expected to further lower costs by 5-7%, making smartphones even more affordable for Ugandan consumers.
A Vision for a Connected, Empowered Future
M-KOPA’s “More Than a Phone” initiative is a testament to the power of technology to drive meaningful change. By addressing both digital and financial exclusion, the company is rewriting the narrative of empowerment for Uganda’s Every Day Earners. The bundled hospital cover and device protection not only mitigate financial risks but also instill confidence, allowing users to fully embrace the opportunities of a digital economy. With plans to release new smartphone models in the second half of 2025 and expand its female customer base to 50%, M-KOPA is poised to deepen its impact across Africa.
