SSA sees surge in mobile money adoption

The landscape of finance in Africa is rapidly evolving, with mobile money emerging as a key player in driving financial inclusion across the continent. Ashley Olson Onyango, Head of Financial Inclusion at Global System for Mobile Communications, recently shared insights on the exponential growth of mobile money, highlighting the significant impact it has had on the economy and society as a whole. The annual state of the sector report on mobile money revealed staggering numbers, with over 1.75 billion registered accounts and $1.4 trillion in transactions processed last year. The industry is processing approximately $2.7 million every minute, showcasing the immense scale and influence of mobile money. While global growth rates are showing signs of slowing, regions like Sub-Saharan Africa and the MENA region are still witnessing robust growth in registered accounts, signaling a promising outlook for the future. One notable trend is the increasing adoption of mobile money among the adult population, with 49% of adults in mobile money-enabled countries having a registered account in 2020, up from 30% in 2019. This growth is not limited to the younger demographic, as older populations are also gradually embracing digital financial services and digital wallets. The shift towards a cashless economy is gaining momentum, with the youth leading the way in adopting and utilizing mobile money for a wide range of financial transactions and services. As tech-savvy digital natives, the youth are driving innovation, diversifying use cases, and contributing to the overall value flowing through the digital financial system. The integration of merchant payments has been a game changer in expanding the utility of mobile money, with $74 billion in transactions processed through merchant payments last year, representing a 14% growth from the previous year. Beyond facilitating day-to-day transactions, mobile money is proving to have a substantial impact on the economy, driving growth and empowerment for the previously unbanked. A comprehensive econometric study conducted from 2013 to 2022 revealed that mobile money has contributed over $150 billion to the gross domestic product of countries with mobile money services, representing a 3.7% increase during this period. The potential for further growth and innovation in the mobile money space is immense, with promising prospects for driving financial inclusion, economic development, and societal empowerment across Africa. As mobile money continues to gain momentum and reshape the financial landscape, it will be crucial to monitor its evolution and impact on a global scale.