How Africa's mobile money story is building futures and creating jobs

The latest State of Industry Report for Mobile Money by Global System for Mobile Communications Association (GSMA) has great insights on the remarkable growth and transformative potential of mobile money in Africa.

From GSMA’s analysis, Africa remains the undisputed global heartland of mobile money, firmly established as the industry's vibrant epicentre and a powerful engine for economic transformation.

In 2024, the continent, particularly Sub-Saharan Africa, spearheaded global growth, with the majority of the more than 2.1 billion accounts registered worldwide on this continent. Sub-Saharan Africa alone accounts for over 1.1 billion registered accounts.

It has seen remarkable expansion, with registered accounts surging by 19 per cent and active 30-day accounts increasing by 12 per cent year-on-year.

This immense and rapidly growing ecosystem facilitated 108 billion transactions valued at over $1.68 trillion (Sh217 trillion) globally, underscoring mobile money's deep integration into daily financial lives.

Beyond transactions, mobile money's growing use demonstrably boosts economies. By the end of 2023, it had contributed an estimated $190 billion to Sub-Saharan Africa's GDP, representing a substantial 4.5 per cent of the region's economy and highlighting its vital role in fostering financial inclusion and driving broader development.

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This dynamic shift highlights the evolution of mobile money from basic financial inclusion to a robust driver of economic empowerment and digital ecosystems.

The narrative is shifting from financial inclusion to a more nuanced story of economic empowerment and the building of digital ecosystems, exemplified by the compelling journeys of Kenya and Ethiopia.

As Safaricom celebrates 18 years since the launch of M-Pesa in Kenya, it’s a powerful moment to reflect on a true Kenyan innovation that didn't just transform our nation but ignited a digital revolution felt across the African continent. 

What began here as a simple service for sending money has blossomed into something far more impactful, showcasing Kenya's pioneering spirit in technology and economic growth.

Today, it's an integral part of daily life, facilitating savings, accessing credit and insurance, and driving merchant payments.

M-Pesa has also become a significant driver of the Kenyan economy, with Sh38 trillion transacted via the platform annually, making it a core driver of the Kenyan economy. At Safaricom, M-Pesa's contribution to revenue has now grown to 44 per cent in the last financial year, making it a key part of our core business.

Ethiopia represents the exciting frontier of mobile money. While the market is less mature, recent regulatory changes and the entry of services like Ethio Telecom's Telebirr and Safaricom Ethiopia's M-Pesa are igniting rapid growth.

We have already seen the use cases for mobile money being replicated in Ethiopia, with lenders providing smallholder farmers with access to farm inputs, credit, and insurance via mobile money, directly strengthening resilience in a vulnerable sector.

This highlights the fact that mobile money is not just about financial inclusion but about building resilience against economic and environmental shocks.

The future of mobile money in Africa lies in deepening these ecosystems. Partnerships between mobile network operators, banks and technology providers will be crucial in bringing innovative new services to users.

According to the World Bank, addressing the usage gap and promoting digital financial literacy, particularly among women, remains essential.

As the industry progresses, the focus is increasingly on leveraging mobile money to drive business growth, strengthen economies, and shape a more prosperous future for all.

A phone call precedes most mobile money transactions. Investments in more telecommunication infrastructure such as 4G-enabled base transmission stations help build the connectivity that is essential for customers to talk to each other and send money.

The digitisation of lifestyles is driven by the need to learn more about the world, stay up-to-date with global events, and become part of the global community, propelling itself forward with intellectual curiosity and the human instinct for improvement.

At the national level, efforts by governments to digitise services are aimed at easing the lives of citizens, so that they can spend their time engaged in economic activities, for example, rather than in queues to renew passports, replace misplaced identity cards and paying for parking.

Easy digital access of services is accompanied by paying at ease, and the ability to make mobile money payments is therefore a natural expectation.

With increased smartphone penetration and lower costs to access the internet, mobile money is poised to move beyond basic transactions to becoming a cornerstone of digital transformation on this side of the world.

- The writer is the Group Chief Financial Officer at Safaricom