By Ajah Jennifer

MTN Momo has addressed widespread concerns over cash shortages at agent outlets, assuring the public that it is actively working with stakeholders to reduce these challenges while promoting digital financial services.

During the press briefing, MTN Chief Executive Officer, Francis Matseketsa emphasized that the reported difficulties in cash withdrawals at agent locations stem from several factors, including the shortage of higher denomination banknotes, customer resistance to small denominations, and lack of deposits by both customers and agents.

The CEO said MTN maintains its mobile money services offer as viable alternatives to cash transactions.

The company clarified that agents were not provided cash by MTN Momo but are expected to generate cash from their business operations, convert it to electronic float, and serve customers.

MTN’s ground teams found that many agents do have cash, but customers often refuse small denominations, insisting on larger notes, especially those seeking to convert cash into dollars, worsening the shortage. The company urged the public to accept all denominations, as all are legal tender. Additionally, the low rate of cash deposits back into the banking system has disrupted the circulation of currency.

MTN Momo advocated for a national shift toward digital payments to reduce dependency on cash and ease financial transactions, encouraging customers to use MomoPay to pay for goods and services at retail outlets, bars, salons, pharmacies, hospitals, and schools that accept mobile money.

“The public should not always resort to cash withdrawals. With Momo, they can pay school fees, buy airtime, send money locally and internationally, and shop at many participating merchants” Francis stated. MTN Momo is in works to actively recruite more merchants and schools to accept Momo as payment.

In the past days, several MTN Momo subscribers complained about lack of cash from the service provider, as they are unable to withdraw money from their mobile money accounts.

Despite having sufficient digital balances, customers said they were being turned away by agents who are unable to provide physical cash, fueling widespread anger and questions among customers.

An anonymous MTN MoMo agent spoke about the challenges they face daily, explaining that the root of the problem is a shortage of South Sudanese Pounds.

“You can have money on your phone, but no cash in hand,” he said.

“Sometimes I sit here with SSP 4 million on my account, but I cannot give customers any cash because I don’t have it physically.”

The MoMo subscribers argued that the mobile money service has to fasten its efforts to address the challenges in a bid to restore customer trust and confidence.