Africa sees robust growth in mobile money transactions despite COVID-19

Mobile money transactions in Africa have seen a significant surge despite the challenges posed by the COVID-19 pandemic. According to a report by GSMA, the value of mobile money transactions in Africa increased by 23% to $490 billion in 2020, while the volume of transactions grew by 15% to $27.4 billion. Akinwale Goodluck, Head of sub-Saharan Africa at GSMA, explained that the pandemic has played a crucial role in driving the uptake of mobile money across the region. The necessity for people to access government aid programs, maintain social distancing, and lack of access to traditional financial services have all contributed to the increased adoption of mobile money in Africa. Goodluck emphasized that the pandemic has accelerated financial inclusion, particularly in marginalized sectors of society, enabling more individuals to participate in the digital economy. Regulatory changes have also played a vital role in facilitating the growth of mobile money services in Africa. Goodluck noted that regulatory interventions by governments and policymakers in sub-Saharan Africa have been dynamic, introducing waivers, lowering high thresholds, and making KYC regulations more flexible. The move towards interoperability among mobile money operators and other sectors of the financial industry has further enhanced financial inclusion across the region. However, Goodluck cautioned against overregulation, highlighting the need to balance regulation with the sustainability of mobile money operators. Despite the positive impact of mobile money on financial inclusion and economic growth, challenges remain. Goodluck pointed out that some mobile money providers, such as Safaricom's M-Pesa in Kenya, have faced regulatory hurdles, especially regarding waivers on transactions. While temporary measures were necessary during the height of the pandemic, Goodluck stressed the importance of allowing mobile money operators to operate without constant regulatory constraints to ensure the long-term viability of the industry. The impact of mobile money during the COVID-19 pandemic has been transformative for economies across Africa. Goodluck emphasized that mobile money has revolutionized commerce, enabling more people to engage in online purchases, access insurance services, and make payments in various sectors such as agriculture. The diversification of mobile money services has also created new opportunities in rural communities, driving economic growth and financial inclusion. Overall, the surge in mobile money transactions in Africa reflects the growing importance of digital financial services in the region, with mobile money playing a pivotal role in driving economic empowerment and financial inclusion in the midst of the pandemic.