When Agnes Mukampabuka needed a smartphone, the associated fee put it past her attain. Shopping for one outright would have required almost Rwf300,000—an quantity she couldn’t afford in a single fee.
As a substitute, she turned to MTN Rwandacell Plc’s Tunga Taci na Yellow smartphone financing programme, run in partnership with smartphone finance agency Yellow Digital Retailers Rwanda (Yellow Rwanda), which permits clients to amass units and pay in instalments.
For the vegetable dealer in Rubavu District, the smartphone has turn into greater than a communication gadget – it has remodeled how she runs her enterprise and interacts with clients.
“I acquired a smartphone via Tunga Taci na Yellow and paid for it in instalments over virtually one 12 months. The entire value was about Rwf300,000, an quantity I couldn’t have afforded upfront,” mentioned Mukampabuka, a mom of six.
“Right this moment, I take advantage of this smartphone for enterprise and to entry digital providers. I take advantage of it for money transactions whereas I additionally use WhatsApp to speak with purchasers and to promote my enterprise by posting messages on standing,” she mentioned, indicating that the smartphone has improved how she communicates with clients in contrast along with her earlier characteristic cellphone, which solely allowed her to make calls and ship textual content messages.
Mukampabuka additionally makes use of the gadget to entry public providers via the Irembo e-government platform.
Her expertise displays the broader aim of the financing mannequin, which MTN Rwanda and Yellow say is geared toward lowering affordability boundaries and increasing digital inclusion.
In response to MTN Rwanda, greater than 30,000 clients have acquired smartphones via the programme over the previous two years, with about 50 per cent being first-time smartphone customers.
Smartphone possession amongst Rwandans stood at 34 per cent in 2024, in keeping with the seventh Built-in Family Residing Circumstances Survey (EICV7) – the newest – by the Nationwide Institute of Statistics of Rwanda.
Increasing smartphone entry via inexpensive financing
The scheme is a part of MTN Rwanda’s efforts to develop digital inclusion by making smartphone possession extra accessible.
The corporate plans to scale up the mannequin, concentrating on greater than 100,000 new beneficiaries yearly, which is greater than triple the present recipients.
“As MTN, our greatest ambition is to offer a contemporary related world to each Rwandan. Step one to digitalisation is a smartphone,” mentioned Somdev Sen, MTN Rwanda’s Chief Shopper and Digital Officer.
He mentioned smartphone possession performs an more and more essential function in enabling residents to take part in Rwanda's rising digital financial system and entry a variety of digital providers.
“That you must have a digital gadget in your hand. With out entry to smartphones, some residents might face further boundaries to collaborating absolutely within the digital financial system.”
Affordability stays one of many key challenges to broader smartphone adoption, he mentioned, indicating that via initiatives corresponding to gadget financing, they’re working to make smartphones extra accessible and help Rwanda’s digital inclusion agenda.
“Smartphones aren’t low cost and, as time goes on, they’re additionally turning into dearer as international provide chain challenges proceed to have an effect on the trade. Gadget financing thus turns into an essential software for us,” Sen mentioned.
Beneath the programme, clients make an preliminary deposit of 25 per cent of the money worth after which from as little at Rwf700 each day for as much as 12 months which embrace month-to-month bundles of information, minutes and SMS messages. This Tunga Taci initiative targets entry-level smartphones throughout completely different manufacturers and is offered via greater than 200 retailers countrywide.
Bringing first-time customers on-line
The programme primarily targets individuals upgrading from characteristic telephones.
“About 50 per cent are first-time smartphone customers who have been upgrading from characteristic telephones,” Sen mentioned.
As soon as related, many customers start adopting providers corresponding to WhatsApp, YouTube, Irembo and cell cash functions.
This additionally permits clients to profit from MTN’s wider digital ecosystem, together with MoMo and different digital providers.
“We see adoption of digital providers. We see adoption on apps like Irembo. By means of this programme, we’re actually having the ability to get lots of people into getting digitalised for the primary time,” he added.
''Yellow Rwanda Nation Supervisor and Head of Buyer, Simon Blampied mentioned the initiative helps Rwanda’s digital transformation agenda.
“Digital inclusion is a very essential nationwide agenda and an enormous driver of development,” he mentioned.
He mentioned entry to financing stays crucial, notably as smartphone possession is decrease in rural areas.
“Entry to finance is a very crucial enabler of smartphone possession and connectivity. To drive general digital inclusion, you're going to wish gadget finance.”
Blampied mentioned many shoppers use smartphones as productive instruments.
“Eighty per cent of our clients have their very own enterprise or are incomes their revenue exterior formal employment.”
“After we communicate to them, clients are utilizing the smartphone as a productive-use merchandise. They’re utilizing it as a possibility to develop their companies, develop their revenue, sort out training, join with family and friends, connect with authorities providers and browse the information they care about,” he mentioned.
Challenges stay
MTN Rwanda says increasing smartphone possession stays difficult resulting from rising gadget costs and restricted entry to financing infrastructure.
“The most important problem at present is that globally entry-level smartphone costs are growing,” Sen mentioned.
He additionally pointed to the necessity for stronger credit-scoring programs to allow wider entry to gadget financing.
“The Credit score Reference Bureau is working in the direction of that. Because the credit score scoring platform turns into extra environment friendly, it’s going to turn into simpler for a tool financing undertaking like Tunga Taci to increase finance to extra individuals.”
Blampied mentioned continued funding in digital literacy shall be essential as entry expands.
“As we proceed to develop entry, particularly into extra rural areas, our accountability is to ensure clients clearly perceive the financing phrases, reimbursement obligations, and the worth they obtain from the smartphone,” he mentioned.
Tunga Taci na Yellow comes as Rwanda accelerates its digital transformation agenda, highlighting that know-how entry more and more relies upon not solely on connectivity but additionally on inexpensive units.
