For the most part, there is not a lot of positivity to highlight about 2020, a year that was largely termed as Covid-19 pandemic dominated.
Globally, the pandemic halted businesses, workers were laid off, social gatherings were prohibited, in person class sessions were suspended, among the other unprecedented events.
On a flip side however, in Rwanda, the Covid-19 pandemic necessitated the public to embrace digital payments, as the country envisions a cashless and paperless economy by 2024.
An annual report from the Central Bank released last month indicated that the level of retail e-payment to GDP rose to 54 per cent from last year’s 34.6 per cent.
Below are the major cashless economic trends that shaped the year.
Mobile Money transactions grow by 450 per cent in three months
From January to April this year, the value of funds transferred via Mobile Money grew by 450 per cent to reach Rwf40 billion, according to data from Rwanda Utilities Regulation Authority (RURA).
The development resulted from among others, the Central Bank and local telcos move to temporarily remove charges on transfers between bank accounts and mobile wallets, mobile money transfers as well as removing merchant fees on payments for all contactless transactions to curb the Covid-19 transmission.
MTN launches mobile money API
In November, MTN Rwanda announced that it had granted access to local developers to its Mobile Money API platform, enabling them to build solutions that accept mobile money payments.
Payment APIs can be defined as interfaces designed for managing payments and enable e-Commerce sites and platforms to process payments for goods and services, track orders, and maintain customers’ lists.
At the time, local developers told The New Times that it will now be easier to integrate Momo into payment systems.
Drive to digitise taxi motos
To fast-track the country’s vision of becoming a digital economy and establishing smart cities, the government instructed that taxi motos, starting with those based in Kigali, phase out cash based payment and adopt digital payment platforms.
Motorists were given a GPS-enabled meter which allows three different modes of digital payment including, MTN Momo Pay, Airtel Money and Tap&Go cards.
Besides the fact that motorists have continued to resist from the development, statistics from RURA indicate that the majority of the taxi-motos, especially those based in Kigali have been given meters.
From a nascent to a booming e-commerce industry
The Covid-19 pandemic caused storefronts to close for months without operations due to lockdown and movement restrictions.
This caused what could be interpreted as an e-commerce boom, with many businesses and their clients being forced to go digital.
Just recently, the government through Rwanda Development Board (RDB) signed a partnership with Dubai-based DP World.
With this deal, Rwanda will become DP World’s initial hub for expanding e-commerce across the East Africa Community and beyond.
This will among others provide a platform for exporters to cash in on increased demand from the global online marketplace.
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