Uganda's Shift Towards a Cashless Economy
In a significant move towards modernizing its financial landscape, Uganda is set to implement strict cash withdrawal and cheque limits starting January 1, 2027. This initiative is part of a broader strategy to promote digital payments, reflecting a remarkable $100 billion surge in digital transactions and mobile money use across the nation. Under the new regulations, individuals in Uganda will be restricted to cash withdrawals of no more than $13,700 (UGX 50 million) on a daily basis, and a weekly maximum of $68,500 (UGX 250 million). For businesses, these limits are even higher, with daily withdrawals capped at $137,000 (UGX 500 million) and weekly at $685,000 (UGX 2.5 billion). This decisive action by the Bank of Uganda to reduce cheque thresholds across various currencies also signals a significant shift away from traditional payment methods, as maximum cheque amounts will be slashed significantly, including Uganda shilling cheques falling from $2,740 to $1,370, and other foreign currency cheques experiencing similar reductions.
These changes are propelled by a remarkable increase in electronic money transactions, which soared by 28% in 2025, climbing from $75 billion (UGX 285.9 trillion) to $100.3 billion (UGX 366 trillion). The volume of these transactions expanded by 17.3%, reaching an astounding 9.1 billion transactions. Mobile money, in particular, is a key driver of this growth, with transaction volumes jumping by 40% to reach a staggering $18.1 billion (UGX 66.1 trillion) and a rise in active users to 36.3 million. The expansion of Uganda's mobile money agent network, which saw a 27.5% increase to over 1.16 million agents, underscores the shift towards a cashless economy.
Despite these advancements, cash remains entrenched in many sectors of Uganda's economy, particularly among small traders, transport operators, and rural communities who often depend on cash due to limited access to reliable internet, banking infrastructure, or digital literacy. The successful implementation of these new withdrawal limits will therefore depend on addressing these underlying challenges to ensure a truly digital financial environment.
Morocco's Commitment to Digital Transformation and AI
Meanwhile, in Morocco, the government is making significant strides in digital transformation and artificial intelligence (AI) as part of its national development strategy. During a recent engagement with French media delegations in Rabat, the Minister Delegate in Charge of Digital Transition and Administrative Reform, Amal El Fallah Seghrouchni, reaffirmed the country's commitment to advancing these technologies through the “Digital Morocco 2030” strategy and the “AI Made in Morocco” roadmap. This ambitious agenda aims to position Morocco as a regional leader in responsible and innovative artificial intelligence, focusing on citizen-centered innovation while fostering trust and digital sovereignty.
Seghrouchni elaborated on various initiatives aimed at strengthening the digital economy, which include supporting startups, enhancing digital skills training programs, and modernizing public services. Notable projects include the JAZARI Institute for applied AI research, which aims to leverage technological advancements for real-world impact, particularly in underserved regions, and the RallyIA innovation program designed to equip the next generation with the necessary skills to seize opportunities in AI. Additionally, the Digital for Sustainable Development Hub exemplifies Morocco's determination to leverage technology as a catalyst for equity, innovation, and opportunity across Africa and the Arab region.
These developments in both Uganda and Morocco showcase a broader trend towards embracing digital transformation across Africa, highlighting the continent's potential to lead in the realms of finance and technology.
As reported by coingeek.com.
