The verdict in three sentences
In Kampala, the real treasury problem is not the amount collected but the gap between the sale and usable cash, which grows when you cash out to a bank. An MTN MoMo disbursement lands in under a minute during business hours but can stretch to 4 hours at night or under load. On monthly revenue of 5,000,000 (FCFA-equivalent), moving average settlement from T+3 to T+1 frees roughly 330,000 of dormant cash.
Working capital by settlement speed
Collection-side working capital is simple to compute: monthly revenue / 30 x delay days. The slower the settlement, the more cash you lock up. Here is the model for various revenue levels (2026 order of magnitude).
| Monthly revenue | Settlement T+1 | Settlement T+2 | Settlement T+3 |
|---|---|---|---|
| 2,000,000 | 66,000 | 133,000 | 200,000 |
| 5,000,000 | 166,000 | 333,000 | 500,000 |
| 8,000,000 | 266,000 | 533,000 | 800,000 |
| 12,000,000 | 400,000 | 800,000 | 1,200,000 |
| 20,000,000 | 666,000 | 1,333,000 | 2,000,000 |
The stakes are clear: on 20,000,000/month, two extra settlement days lock up 1,333,000 permanently, the equivalent of a full stock cycle you could otherwise turn over.
Average vs peak delay: the Uganda example
In Uganda, an MTN MoMo disbursement lands in under a minute during business hours but can reach up to 4 hours at night or under load. You must provision on the peak, not the average.
| Context | Average delay | Peak delay |
|---|---|---|
| Business hours, normal load | < 1 min | 10 min |
| Business hours, month end | 5 min | 45 min |
| Evening (after 8pm) | 20 min | 2 h |
| Night | 40 min | 4 h |
| Weekend / holiday | 30 min | 3 h |
A business counting on instant cash at night can be stuck for 4 hours, enough to miss an urgent restock if you did not keep a treasury buffer.
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Mini case study
Joseph, who runs a beverage depot in Kampala, collects 5,000,000/month and always cashes out to his bank at T+3. His collection working capital is therefore 5,000,000 / 30 x 3 = 500,000 locked up permanently. With no overdraft available, he finances that gap with short-term credit at 12 %/year, about 60,000/year in interest. By keeping 70 % of sales on a mobile-money balance (T+0/T+1 settlement) and cashing out only the rest, he cuts his working capital to about 200,000 and halves his interest cost.
FAQ
How do I compute collection working capital? Simple formula: monthly revenue / 30 x settlement delay days. On 5,000,000 at T+3 that is 500,000 locked up permanently.
Why does bank cash-out slow everything? The mobile-money balance is available at T+0/T+1, but repatriating to a bank adds business days. Keeping part of the funds in mobile money lowers average delay.
What delay should a well-run business target? Average settlement below T+1 on most collections. Above T+2 you permanently finance the equivalent of 6 to 10 % of monthly revenue.
Is MTN MoMo disbursement reliable at night? On average yes, but the peak can reach 4 hours under night load. Never plan a critical restock on a night cash-out without a buffer.
How do I reduce my working capital need? Speed up settlement (stay in mobile money), negotiate supplier terms aligned with your collections, and provision on the peak rather than the average.
Let's talk about your project. We model your working capital and optimise your mobile-money flows to cut locked-up cash. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
