Over the past decade and a half, mobile money has emerged as a critical driver of financial inclusion across Africa, transforming simple mobile phones into pocket banks for millions. From major cities like Nairobi and Dakar to rural towns across the continent, mobile money has revolutionized how people save, send, and access funds, significantly contributing to economic growth.
Launched in Kenya in 2007, mobile money services have grown exponentially. By 2024, Africa had over 1.1 billion registered mobile money accounts, representing more than half of the global total. These accounts processed around 81 billion transactions valued at $1.1 trillion, accounting for nearly two-thirds of global mobile money transaction value. The growth is particularly significant in Sub-Saharan Africa, where traditional banking infrastructure remains limited. In 2021, more than half of the population in the region did not have access to a bank account, highlighting the importance of mobile financial services.
Economically, mobile money has become a major contributor to GDP across African nations. In 2023, the sector contributed approximately $190 billion to Sub-Saharan Africa’s GDP, up from $150 billion in 2022. Countries such as Benin, Côte d'Ivoire, Ghana, Guinea, Guinea-Bissau, Senegal, and Liberia saw mobile money contribute more than 5 percent of their GDP. East African nations including Kenya, Rwanda, Uganda, and Tanzania reported similar economic boosts from mobile financial services.
Mobile money has also had significant social impacts. In Mali, the startup OKO, in collaboration with Orange Money, has enabled over 41,000 farmers to purchase climate-indexed insurance to protect against crop losses due to extreme weather. In Ethiopia, partnerships between Lersha, Telebirr, and M-PESA have facilitated group loans and crop insurance, strengthening food security. Pay-as-you-go solar kits funded via mobile payments have also improved access to renewable energy in rural East Africa.
Looking ahead, mobile money is expected to continue evolving. Services are expanding beyond basic transactions to include savings, loans, and insurance, providing more comprehensive financial solutions. Integration with e-commerce is increasing, making digital payments seamless for goods and services. Emerging technologies such as blockchain and artificial intelligence are being explored to enhance security and accessibility.
Despite its success, the sector faces challenges including the need for greater digital financial literacy, regulatory complexities, and ensuring interoperability between platforms. In a notable development, MTN Uganda announced plans to spin off its mobile money and fintech unit into a separate entity, with intentions to list it on the Uganda Securities Exchange within three to five years, reflecting the growing importance and profitability of mobile financial services.
As mobile money continues to expand across Africa, it remains a transformative force, improving livelihoods, driving economic growth, and reshaping the continent’s financial landscape.