Uganda digital payments hit $100B; Morocco advances AI plans

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African nations Morocco and Uganda are taking steps toward adopting digital transformation in finance and infrastructure. Last week, Morocco reaffirmed its commitment to advancing digital transformation and artificial intelligence (AI) as part of its national development strategy. In other news, Uganda is making strides toward a more cashless economy, driven by a $100 billion surge in digital payments and mobile money transactions.

Uganda prioritizes digital payments over cash following $100B surge

Starting on January 1, 2027, Uganda is introducing strict cash withdrawal and cheque limits. A move that signals a significant shift in the country’s financial ecosystem.

By next year, individuals residing in Uganda will only be allowed to withdraw cash for a maximum of $13,700 (UGX50 million) daily and $68,500 (UGX250 million) weekly. Businesses, however, will have a daily cap of $137,000 (UGX500 million) and weekly caps of $685,000 (UGX2.5 billion).

In addition, Bank of Uganda is slashing cheque thresholds across multiple currencies, further reducing reliance on traditional payments, as the maximum volume of Uganda shilling-denominated cheques will be reduced from $2,740 (UGX10 million) to $1,370 (UGX5 million). Dollar cheque limits will also decrease from $2,750 to $1,375; euro-denominated cheque thresholds will be reduced from €2,250 ($2,613) to €1,125 ($1,306); pound sterling cheques will drop from £2,200 ($2,954) to £1,100 ($1,477); while Kenyan shilling cheque limits will be halved from KES300,000 ($2,319) to KES150,000 ($1,159).

The shift comes amid strong growth in digital payments and mobile transaction activities in Uganda.

According to data from the Bank of Uganda, the value of electronic money transactions rose by 28% in 2025, increasing from $75 billion (UGX 285.9 trillion) to $100.3 billion (UGX 366 trillion). Additionally, the volume of transactions grew by 17.3%, reaching a total of 9.1 billion transactions.

Mobile money has continued to drive growth, with transaction volumes rising 40% last year, reaching $18.1 billion (UGX66.1 trillion) value, and active users climbing to 36.3 million. Meanwhile, the country’s mobile money agent network expanded by 27.5% (over 1.16 million) agents nationwide.

These figures may have pushed for Uganda’s central bank’s decision to shift away from physical cash. In a circular issued to commercial banks, credit and microfinance deposit-taking institutions, the central bank said that its goal for the strict limits is to build a “modern, digital-first financial landscape,” by encouraging the use of digital payment channels.

Despite the growing adoption in digital payments, cash usage remains deeply embedded across many parts of Uganda’s economy.

Small traders, transport operators, rural communities, and businesses still depend on cash for daily transactions because many lack reliable internet connections, banking infrastructure, or digital literacy. If this continues, the strict implementation of the cash withdrawal limit may become a challenge.

Morocco reaffirms position in advancing AI and digital transformation

Elsewhere in Africa, Morocco has restated its commitment to advancing digital transformation and AI as part of its national development strategy, discussed during a high-level engagement with French media delegations in Rabat on June 3.

The Minister Delegate in Charge of Digital Transition and Administrative Reform, Amal El Fallah Seghrouchni, received the delegation under the “Raoul Tour Morocco” initiative, an expedition focused on exploring the country’s technological space.

At the meeting, the Minister outlined their progress on the “Digital Morocco 2030” strategy and the “AI Made in Morocco” roadmap, and outlined the African nation’s plans to position itself as a regional leader in responsible, innovative artificial intelligence.

Seghrouchni mentioned Morocco’s approach to AI adoption, describing it as a “third way” model based on responsible and citizen-centered innovation, while fostering trust and digital sovereignty. She also highlighted ongoing reforms and initiatives aimed at strengthening the country’s digital economy, including support for startups, digital skills training programs, and the development of the nation’s offshoring sector. The Minister further noted their progress in modernizing public services.

Some of the key projects by Morocco in digital transformation includes, the JAZARI institute for applied AI research which seeks to transform technological advancements into real-world impact, particularly in the country’s underserved regions; the RallyIA innovation program which is led by the Ministère de la Transition Numérique et de la Réforme de l’Administration to prepare the next generation for the opportunities on AI; and the Digital for Sustainable Development Hub, an initiative that reflects on Morocco’s determination to “make technology a driver of equity, innovation, and opportunity” across its borders and in Africa and the Arab region.

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