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Get your credit worthiness report on your phone with Metropol’s Crystobol Solution



Samuel Umukoko, the CEO of Metropol Credit Reference Bureau, speaks at Metropol Crystobol’s launch in Kampala, on Wednesday May 9th 2019

Metropol Credit Reference Bureau (MCRB) on Wednesday May 8th, 2019 launched its new product delivery platform code-named Metropol Crystobol.

A first of its kind in Uganda, Metropol Crystobol gives borrowers direct access and control of their credit information and other bureau products via mobile phones.

The service is available upon an easy mobile phone-based registration. To register, customers dial *243# on their mobile phones, for all networks, then key in their Financial Card number and follow the message prompts to complete registration.

According to Samuel Umukoko, the CEO of Metropol Credit Reference Bureau, registered members will then have easy access to any of the bureau’s four main products that include: Credit Reports, Listing Status, Metro-Score And Who Has Listed Me.

Umukoko said that the Metropol Crystobol will empower borrowers to “take control of their credit worthiness by allowing them easy access to affordable credit, negotiate favourable credit terms with lenders and above all, enjoy the freedom to choose their preferred lender

A Credit Report is a detailed account of one’s lifetime borrowing with all current credit providers and their performance in terms of repayment. The report is used by all lenders to determine loan approvals.

Upon registration, all customers will be entitled to a free annual credit report.

Clients will also be able to know their listing status as reported by their various lenders. Green means one has no credit history; black means one has a negative (default) credit history and lastly, Gold means one has a positive credit history.

Under the “Who Has Listed Me” service clients will be able to know the list of all the lenders who have contributed information about a client to Metropol Credit Reference Bureau.


The Metro-Score® according to Mr Umukoko, “measures one’s credit worthiness and the likelihood that they will meet their financial obligations.”

“The Metro Score has become the industry standard that all lenders use to assess borrower credit worthiness and is also used by lenders to determine appropriate interest rates to charge for various types of credit facilities. The Metro-Score ranges between 200 – 900, with 450 being the middle mark. Customers that score below 450 have marginal to poor credit quality while those that score above 450 have good to excellent credit quality,” explained Umukoko.

Empowering borrowers

Umukoko said that the Metropol Crystobol will empower borrowers to “take control of their credit worthiness by allowing them easy access to affordable credit, negotiate favourable credit terms with lenders and above all, enjoy the freedom to choose their preferred lender.”  

“This will significantly impact on the lender-borrower relations in the Ugandan market, where we shall see borrowers obtaining increased bargaining power by taking advantage of their positive credit profiles,” he said, in a statement. 

Metropol Credit Reference Bureau is a subsidiary of Metropol Corporation Limited, a data driven entrepreneurial company based in Nairobi, Kenya and which has been in existence for the past 23 years.

Metropol CRB was licensed by Bank of Uganda in 2015 and has been in operation since then. It receives credit data on a monthly basis from all the Bank of Uganda licensed financial Institutions and processes this data into credit reports and other value added solutions necessary for making sound credit decisions.  

The high cost of money still remains a major stumbling block to businesses and individuals alike.

Although the central Bank has over the last 24 months cut down the Central Bank Rate (CBR) by 41.18% from 17% in January 2016 to 10% at the end of December 2018, interest rates have not fallen by the same rates- only declining by 17% from an average 24.29% to 20.1% in the same period.

One the contributory factors to high interest rates is poor credit worthiness.

Consumer credit worthiness ignorance also makes it less likely for consumers to plan, budget and improve their credit scores.

Other than improving negotiating powers with lenders, having easy access to credit worthiness reports, especially via mobile phone will help consumers improve their credit ratings.

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EXCLUSIVE: Airtel posts UGX338 bn in 2018 profit; makes more profit than MTN for 3 years in a row



(LEFT-RIGHT): Airtel Uganda Managing Director, V.G Somasekhar, ICT Minister Hon Frank Tumwebaze and then UCC Director for Corporate Affairs Fred Otunnu at the September 2017 launch of Airtel’s 4G LTE service. In the last 5 years, Airtel has made an impressive come back, pegged on data and fintech.

Airtel Uganda, made a profit of UGX338 billion (USD91 million) in 2018, thanks to yet another good year of sales.

A meticulous 4 months research into the financials of the two telecom companies, shows that Airtel’s turnover in 2018, grew 5% from UGX1.16 trillion in 2017 to UGX1.21 trillion. Net profit grew much healthier- an impressive 38%- from UGX245 billion to UGX338.1 billion.

MTN Uganda, the leading telecom company in Uganda, at least by turnover, on the other hand registered a 44% growth in profit from UGX152.6 billion in 2017 to UGX220 billion in 2018. Gross turnover grew 8% from UGX1.4 trillion in 2017 to UGX1.6 trillion.

Airtel Uganda has since 2016 been Uganda’s most profitable telecom company and arguably among Uganda’s most profitable companies

This is the 4th straight profitable year for Airtel Uganda, since they acquired Warid Telecom in 2013. That year (2013) Airtel made perhaps its first profit ever in Uganda of UGX52 billion, but in the following year (2014), that, relapsed to a loss of UGX131.4 billion.

Airtel then bounced back in 2015 with a UGX52 billion profit and hasn’t looked back since then. In 2015, the telecom that is 100% owned by India’s Bharti Airtel bounced back with a profit of UGX86 billion, then UGX160.1 billion in 2016, UGX245 billion in 2017 and finally UGX338 billion in 2018.

On the other hand, in 2012, just before Airtel acquired Warid, MTN had just posted UGX400.4 billion in profit and this reduced to UGX302 billion in 2013. In 2014 MTN Uganda’s profit was 331.6 billion while in 2015, profit went down by 46.7% to UGX176.8 billion and further reduced to UGX96.3 billion in 2016.

In 2017, MTN profit picked up by 58.5% to UGX152.7 billion, reaching UGX219.5 billion in 2018.

The Warid factor

In April 2013, by the time Airtel Uganda acquired Warid Telecom, at a reported USD100m, MTN was the only profit making telecom company. The other 3 players, Airtel, Warid and Orange were all crippled by debts occasioned by years of loss making- giving MTN a big-boy market position.

Although MTN remains the biggest telecom company by revenue, Airtel has since its acquisition of Warid Telecom in 2013, narrowed the gap between itself and MTN.

Although the merger between Airtel and Warid did not give Airtel an immediate advantage in sales- MTN’s gross sales in 2013, stood at UGX1.2 trillion compared to UGX505 billion for the new Airtel, it is said to have earned Airtel, millions of customers.

It is these numbers that Airtel has leveraged to build a solid business- reducing the turnover gap between itself and MTN from UGX681 billion in 2013 to UGX340 billion at end of 2018- MTN took in UGX1.55 trillion and Airtel UGX1.21 trillion in gross sales at the end of 2018, compared to UGX1.18 trillion vs Airtel’s UGX505 billion in 2013 respectively.

Will Airtel Uganda one day, win back the No.1 market position?

Even though MTN remains the market leader- the unmistakable fact is that its growth has slowed down while Airtel’s growth is your typical fast and furious.

Comparatively, between 2013 and 2018 MTN’s Compound Annual Growth Rate (CAGR) in gross turnover and profit has been 5% and -5% respectively, while Airtel’s has been 16% and 37%.

This reporter asked both the MTN CEO Wim Vanhelleputte and the Chairman, Mr Charles Mbiire on what is causing the slow down and what they were doing to re-stimulate growth, but they did not respond in 4 days, despite promises of getting back to us.

An email inquiry to Airtel’s CEO Mr V.G Somashekar and the spokesperson, Ms Sumin Namaganda was also not responded to despite an acknowledgement of receipt.    

 Both companies, however did not contest our figures.

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World Bank’s IFC considering USD70 million loan to Umeme



The International Finance Corporation (IFC) the largest global development institution and a member of the World Bank Group, has reported, they are considering lending up to USD 70 million (UGX263.2 billion) to Umeme Limited.

Umeme workers carry out new installations. To date, Umeme has invested $627m (UGX2.4 trillion), but plans to invest USD450 million in capex over the next 6 years and up to USD1.5 billion in 10 years so as to create a robust enough distribution network to last the country for another 20 years. The planned IFC USD70 million is therefore a major boost.

Umeme is Uganda’s largest power distributor.

In a disclosure posted on their website, IFC said they plan to raise a senior loan for up to USD 30 million from IFC’s own account, and up to USD40 million to be mobilized from other lenders- altogether USD 70 million.

IFC said in the disclosure that the debt financing will be used to support “Umeme’s next 6-year (2019-2024) capital expenditure program, which will mainly focus on: network upgrades to enable load growth and additional connections to support uptake of new generation, safety/reliability enhancements, and implementation of smart meters to continue improving collections and reducing commercial losses.”

“The Project will support the growing demand for electricity in Uganda, and contribute to ongoing efforts to increase access to electricity. This will help fulfil the Government of Uganda’s efforts to improve electrification rate from the current 27% to 60% by 2027, and complement the significant growth (almost double) in generation capacity expected by 2020 (from 183MW Isimba and 600MW Karuma dams, and small solar/hydros),” said IFC in their disclosure.

“In addition, the Project has potentially significant indirect and induced effects on value added and employment as Umeme’s network expansion plan focuses on zones with high electricity demand and economic growth potential. Finally, it will improve resilience of the main distribution network in Uganda and reduce losses, through adoption of advanced smart technologies, adequate maintenance and upgrade of ageing assets,” added IFC.

IFC further said that by availing more affordable commercial and institutional financing, which is not readily available in the Ugandan market, Umeme will be enabled to “increase the average maturity of its loans and free up cash flow for Capex.”

President Museveni launches commercial operations of the Soroti Fruit Factory, on the outskirts of Soroti town recently. Uganda had reinvigorated her industrialisation strategy and is relying on reliable and stable power from Umeme and other distributors to power this drive. According to IFC, the USD70 million loan to Umeme will support the growing demand for electricity in Uganda, and contribute to ongoing efforts to increase access to electricity and directly and indirect induce jobs and economic growth.

“IFC’s involvement and proposed structure will also provide comfort to existing commercial lenders to potentially increase their commitment to Umeme,” said IFC.

This disclosure, coming at the same time as government’s confirmation last week that it will renew Umeme’s 20-year concession comes in handy and is a growing show of confidence in the power distributor.  

The financing, if approved will bring, the total amount of lending to Umeme by IFC to USD185 million over the last 10 years. Umeme, which has previously been hailed by the World Bank as “by far the most successful Public Private Partnership “in the previous past has attracted up to USD 265 million in funding from the International Finance Corporation (IFC), Standard Chartered Bank, and Stanbic. 

In a recent interview with CEO East Africa, Patrick Bitature the Umeme board chairman, said Umeme will need to invest up to USD450 million in capital expenditure (CAPEX) alone. He however added that to create a robust enough distribution network to last the country for over 20 years, Umeme will need to invest between USD1 billion and USD1.5 billion over the next  five to ten years.

To date, Umeme has invested $627m (UGX2.4 trillion) into doubling the distribution network to over 34,000km from the 16,000km it inherited and grown customer connections by more than 4 times- from the 290,000 inherited to 1,291,811 by end of 2018.

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Umeme to pay UGX66.4bn in 2018 dividends; earmarks UGX1.7 trillion investment



Umeme MD, Selestino Babungi (center) flanked by Blessing Nshaho (right) the Chief Corporate & Regulatory Officer, Umeme and Florence Nsubuga. the Chief Operations Officer (left) announce the 2018 results. The power distributor registered a UGX132.8 billion profit.

The Umeme Annual General Meeting, has today approved a UGX28.2 per share final dividend to all its shareholders for the year ended 31 December 2018.

This, in addition to the UGX12.7 interim half-year dividend, adds up to a total of UGX40.9 per share-a 438.2% rise from the UGX7.6 per share that Umeme paid in 2017.

In total, the giant utility will fork out up to UGX66.4 billion in dividend payments,  up 87.1% from UGX12.7 billion in 2017, thanks to a combined stellar performance and an increased dividend pay-out ratio-  35% in 2017 to 50% in 2018.

Between 2017 and 2018, the number of customers grew by 15% from 1.13 million to 1.29 million and electricity sold grew by 9.1% from 2,277 Gigawatt hours (GWh) in 2017 to 3,011 GWh in 2019. Coupled with tighter revenue collection measures, revenue grew by 12.7% from UGX1.42 trillion in 2017 to UGX1.60 trillion. With tighter cost controls, profit jumped by 274%

The power distributor in 2018, posted a 274% rise in profit, from UGX35.5 billion in 2017 to UGX132.8 billion for 2018.

The final dividend, subject to deduction of withholding tax, where applicable, will be paid on or about 15th July 2019 to shareholders in the books of the Company at close of business on 20th June 2019.

‘The dividend will be paid into the shareholder bank accounts or mobile money accounts whose details are maintained by the Securities Central Depository (SCD),” Mr. Selestino Babungi, the Managing Director, told the AGM.

Looking to the future: Umeme’s 2019/2025 Capex plan  

Babungi, told the AGM that to satisfy electricity demand that is growing 9.1% annually and a customer base growing at 15% per annum coupled with the government’s universal connection policy that seeks to connect 300,000 customers per year; thereby increasing access to electricity to 60% by 2027, the company planned to invest approximately USD450m (UGX1.7 trillion) between 2019 and 2025.

The recently commission Isimba dam, that has increased Uganda’s installed power generation capacity from 1, 014 megawatts (MW) to 1, 197MW. Once Karuma Dam starts generating power next year, Uganda’s installed capacity will increase by 600MW. Umeme says it plans to invest USD450m over the next 6 years to extend the distribution grid to evacuate the 783MW additional generation and connect 2 million customers.

He outlined 4 strategic areas where the company would be investing, namely: “network adequacy to meet forecast growth driven by need to absorb the anticipated generation with major prioritisation of industrial parks and industrial zones of Namanve, Mukono, Iganga, Kapeeka, Luzira and Mbale.”

The company would also prioritise the improvement of reliability and quality of supply, with a major focus being put on injecting new substations and new transformer zones in high growth areas.

The other two priorities included, supporting supporting the Government agenda for accelerated access and in this regard, Umeme targets to connect over 2 million customers over next 6 years as well as improving efficiency of the distribution network by leveraging on new technologies.

“Universal access means you will require a large footprint (coverage), which means opening more service centres (offices), building substations, extending lines, injecting transformers and recruiting more people on the ground. These require massive investments,” Babungi explained.

He also noted that facilitating the uptake of the new generation capacity at Isimba and Karuma dams, needs a robust and well-maintained network to absorb and effectively distribute this power.

Isimba Dam, which was commissioned early this year, increased Uganda’s installed power generation capacity from 1, 014 megawatts (MW) to 1, 197MW. Once Karuma Dam starts generating power next year, Uganda’s installed capacity will increase by 600MW.

“Focus will be on extending the distribution grid to evacuate the 783MW additional generation, connecting 2 million premises to the grid, thus creating demand. Network evacuation pipes/lines to the demand growth areas will require massive investments,” he said.

Mr. Babungi observed that quick connections for the new applicants and the supply of quality and reliable power require adequate resources for repairs and maintenance.

“The network is expanding across the country, meaning you will need human resources on the ground to keep quality lights on 24/7. This offers a great opportunity for job-creation (capacity development). The company will need to triple its current number of technical staff to serve the double the size to serve 3.4m customers by 2025,” he noted.

Last year alone, Umeme spent $62 million on the distribution.

Babungi also said given the sector needs and the projected Umeme investment, the company had exercised its rights under the Electricity Act, to apply to the Electricity Regulatory Authority to reconsider its tariff performance parameters for 2019 – 2025.

He however, noted with concern that whereas the distributor had applied to the regulator to be allowed USD65m in operating costs, so as to meet the huge task ahead, they had only been granted USD41m for 2019.

He said this was bound to affect both the service quality and losses targets.

“We will struggle,” he said.

Solid fundamentals for 2018

Beyond the good dividend, Babungi told shareholders that their company stands on solid ground. 

Umeme says, significant and continued investment in the distribution network is needed to maintain the operational efficiency achieved thus far and transfer the benefits to the end consumer.

Between 2017 and 2018, the number of customers grew by 15% from 1.13 million to 1.29 million and thanks to increased generation capacity and a consistent reduction in energy losses- 16.6% in 2018 from 17.2% in 2017, there was more power to sell.

Electricity sold grew by 9.1% from 2,277 Gigawatt hours (GWh) in 2017 to 3,011 GWh in 2019. Coupled with tighter revenue collection measures, revenue grew by 12.7% from UGX1.42 trillion in 2017 to UGX1.60 trillion.

Subsequently, net profit jumped 274% from UGX35.5 billion in 2017 to UGX132.8 billion.

In the last 13 years, Umeme has invested over $600m into doubling the distribution network to over 34,000km and growing customer connections by more than 4 times.  

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