MTN Uganda telecommunications Company has entered a partnership with ClinicPesa, a licenced digital health solutions provider to extend health insurance to customers at an affordable price through daily savings.
The initiative involves mobile money users subscribing to the MTN Momo platform where they can then be helped to open a ClinicPesa account and instantly start saving their money.
According to Chrispinus Onyancha, the Chief Executive Officer of ClinicPesa, a person can save from as little as 500 shillings daily and be able to receive their savings at the end of the year with a five percent interest rate.
Onyancha said on Tuesday that the saver can also use their money anytime they need it to access health services at the over 1000 health facilities they have partnered with in offering this service. He says the initiative has provided a special package for expectant mothers to also save for the time when they are due for delivery. Â
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Onyancha said that users of the service shall also be able to acquire loans to finance their health needs especially when upon expenditure of their savings as designated health facilities, the saving is found to be insufficient. He explained that they are also working with some commercial banks to extend the loans at an annual interest of seven percent that the patient or subscriber can pay when they recover.Â
The loans shall range between 3000 shillings to three million shillings and shall be issued based on the customer’s transaction history with the MTN.
Currently, Uganda’s health insurance options are employer or community-based schemes and are estimated to cover less than 2 percent of the population. But now with over 15.9 million MTN subscribers, 9.5 million Momo Users, Sylvia Mulinge, the MTN Executive Director says that the new services have potential to extend financial inclucivity and access to health care to a large section of the Public.Â
Richard Byarugaba, the Head of Finance at Bank of Uganda, who represented the deputy governor says that the initiative is likely to enable a large population of Ugandans to save more for future eventualities especially bad health not just for them but for their family and dependents.
Byaruhanga says that with only 15 percent of Ugandans saving with financial institutions and 17 percent on their mobile phones, the initiative shall ease public saving and promote health care in the country. He added that Bank of Uganda has a goal to achieve price stability, financial inclusion and sound financial system in support of social economic transformation.
According to World bank 2020 estimates, a savings to GDP ratio of 12 percent which is very low compared to Tanzania and Zambia who stand at 35 and 45 percent respectively. And yet, the Financial capability survey of 2020 also indicated that only 15 percent of Ugandans save their money with deposit taking financial institutions regulated by Bank of Uganda, while 17 percent save on their mobile phone using mobile money.
Byaruhanga hence notes that the initiative shall improve the saving culture of Ugandans and shall also leverage on their mode of saving which is mobile money.
Vanessa Muhwezi, the Manager lending at the Uganda Microfinance Regulatory Authority-UMRA also welcomed the initiative saying that it shall serve a reasonable population of Ugandans who rarely deal with banks but instead opt to do business with SACCOs, money lender and microfinance centers among others.Â
Source : URN
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