AI Africa: Investing in Africa’s mobile financial services sector

In a recent interview with CNBC Africa, Michael Wallis-Brown, the Global Head of Ericsson Mobile Financial Services, discussed the importance of investing in Africa's mobile financial services sector. Wallis-Brown emphasized the significance of data in connecting millions of consumers and businesses to an ecosystem. He highlighted the vital role that AI will play in the future, particularly in areas such as fraud detection, anti-money laundering, and most importantly, identity management. Wallis-Brown stressed that a secure platform is essential to managing these data points effectively, and Ericsson Mobile Financial Services provides a stable and secure platform across 16 markets in Africa. One key point discussed in the interview was the impact of regulatory issues on businesses operating in the sector. Wallis-Brown stated that a secure and stable platform is crucial to ensure compliance with regulations. By providing partners like MTN MoMo with a reliable platform, businesses can navigate the complex regulatory environment and operate safely. This stability creates a conducive space for fintech companies to thrive and innovate. The conversation also touched on the growth of mobile financial services in Africa. Wallis-Brown cited a survey that predicted a significant growth from 29 to 40 percent in the next five years. While AI will contribute to this growth, he emphasized that it is not the sole driver. The focus is currently on introducing basic services such as payments and money transfers to connect more people to the digital economy. As the foundation strengthens, more advanced services like microloans and insurance will follow, paving the way for AI integration. When asked about the progress of incorporating AI into the mobile financial services sector, Wallis-Brown acknowledged that AI is still in its early stages. Africa, however, has made significant advancements in mobile financial services, with many individuals accessing financial services for the first time through their mobile phones. The existing ecosystem provides a solid foundation for the integration of AI technologies in the future. As Africa continues to leverage mobile-first financial services, the introduction of AI will further enhance the sector's capabilities. In conclusion, Wallis-Brown emphasized the importance of building a secure platform to support the growth and innovation of Africa's mobile financial services sector. While AI holds great potential in advancing the sector, it is essential to first establish a strong foundation of basic services to connect more people to the digital economy. With a focus on simplicity, security, and innovation, Africa's mobile financial services sector is poised for continued growth and development.