In this current age of digital transformation, small business owners in Uganda are no longer depending solely on walk-in customers or word of mouth to grow their business. They are using smartphones from device-financeers like M-KOPA, to reach more customers, and run smarter businesses.
In this article, we share 5 ways Ugandan business owners are using M-KOPA phones.
1. For business security and peace of mind
In the busy shops of Kampala, it is easy to accidentally buy a phone that brings you trouble. For a business owner, being arrested over a "stolen" device can ruin your reputation and your finances. M-KOPA provides a safe, legal way to own a brand-new phone with full transparency.
Case Study: Babu Ivan
Babu, a Special Hire driver, learned the hard way after buying a phone that turned out to be stolen. He ended up in a legal battle and spent two months at Luzira.
"I stopped buying phones from shops since then," he said. "Then, I met an M-KOPA agent who told me I could get a phone with a small deposit of UGX 130,000. This phone was never stolen, and I never had any issues with it. Also, it gave me peace of mind because I could pay without pressure."
After completing payment for the phone, Babu became eligible to get his first digital loan from M-KOPA, which he used to buy a battery for his car. He used his second cash loan to buy front tyres for his car, and his transport business got all the better for it.
2. To build and gain clients’ trust
In businesses like hair dressing and other beauty-related ventures, "seeing is believing" for prospective customers. Using a phone with a high-quality camera helps you win more deals and build professional trust over time.
Case Study: Babu Ivan (continued)
After finishing his second loan, Babu got a Samsung A05 for his wife who runs a salon in the neighborhood.
"I got a Samsung A05 which I gave to my wife who had a salon. Clients would call her and ask her to send them pictures of her work."
Her previous phone had poor camera quality that didn't enable her to do this. But now, with her Samsung A05, her business has improved.
3. For remote management and monitoring
Many small income households in Uganda have multiple side-hustles. Like Joseph, who is managing a farm upcountry while also working as an Uber driver in the city. With his M-KOPA phone, he was able to travel constantly and still manage workers on his farm efficiently.
Case Study: Joseph Kayondo
Joseph is both a farmer and an Uber driver in Seguku. He uses his M-KOPA phone to keep both businesses thriving at the same time.
"I use the phone for my Uber app, and the phone gives me a location pin, making it easy to find customers.”
But it wasn’t just his Uber business that flourished. Joseph’s farming operations, once a constant source of worry due to his absence, began to thrive under his remote management.
"I receive photos of crops and livestock from my workers. I can make decisions and conduct business transactions instantly, without time-consuming and costly trips to the farm."
With the proceeds from his two businesses, Joseph has bought land, built a house, and improved the quality of his household’s daily life.
4. Recovering from loss and getting back on your feet
Losing a phone is a dark period for any business owner because you lose your contacts and your connection to the world. M-KOPA makes it easy to get back on your feet quickly with a low initial deposit, ensuring your business doesn't stay closed for long.
Case Study: Susan Talengera
Susan owns a drug shop and has a bakery which is more of a family business she runs with her children. After she lost her previous smartphone, she also lost the contacts of both her international and local clients. It was such a dark period for her business, as she felt hopeless.
When she went to the police station to report her lost phone, she met an old friend who would be the reason she’d own an M-KOPA phone.
"M-KOPA gave me back the hope I had lost. I owned a smartphone again with just an initial deposit. I could add back my clients, negotiate deals, and resume advertising my bakery on WhatsApp."
Running her drug store also became more efficient. "I even use it to check on my drug shop patients to see how they are progressing after a visit," she shared.
5. Boosting production with cash loans
A smartphone from M-KOPA is a gateway to credit. Once you build a good payment history, you qualify for cash loans that can be used to repair equipment or buy stock, keeping your business running during tough times.
Case Study: Susan Talengera (continued)
When Susan needed to grow her bakery business and the drug store, her M-KOPA credit history allowed her to access a cash loan of UGX 500,000.
"The loan was a blessing for my bakery because I wanted a bigger mixer to accommodate larger cakes. It saved time for me and my clients."
For a drug shop, more stock meant higher profits due to availability and variety.
"I also used the money to buy more stock for my drug shop. In this business, more variety means higher profits," she added.
Want to Grow Your Business Too?
If you want to stop worrying about losses and start growing your business, it’s time to join the M-KOPA family.
See phone options to join.
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