(Ecofin Agency) - South African mobile operator Vodacom announced a total of $400 billion in financial transactions via its services for the 12 months ending in June 2024. This figure includes transactions across its network in South Africa and its subsidiaries in Egypt, Mozambique, Tanzania, Lesotho, and the Democratic Republic of the Congo (DRC), which had 46.6 million users by the end of the period.

In West Africa, Vodacom’s presence in financial services is limited compared to competitors like MTN, Orange, Airtel Africa, and Moov Africa (a subsidiary of Maroc Telecom). MTN, Vodacom's main rival, reported $285.5 billion in transactions during the same period.

Orange’s figures for its major African subsidiaries (Senegal and Côte d'Ivoire) are not specified, but the company claims over €130 billion ($144.7 billion) in transactions across its network. Airtel Africa reported $115.5 billion in transactions, while Maroc Telecom did not provide specific figures for its financial services but noted a 4.6% increase in this segment during the first half of 2024.

A significant part of Vodacom’s performance comes from Safaricom, the Kenyan operator in which Vodacom holds a 35% stake. Safaricom, with 35 million active users, exemplifies the successful shift from telecom services to financial services, with an estimated transaction volume of $320 billion.

MTN and Airtel Africa, operating in major markets like Nigeria and Côte d'Ivoire, face increasing competition from local providers. In Nigeria, banks are working closely with fintechs, limiting telecom operators to providing connectivity. In the WAEMU zone, new entrants like Wave, based in Dakar, are disrupting the telecom market.

As call revenues and internet rates continue to fall due to competition, financial services are emerging as a growth area for operators. However, replicating the success of mobile money in Kenya or Tanzania is challenging due to high market penetration in those regions.

Some banks are capitalizing on the rise of the internet to develop digital services within regulatory limits. In the DRC, Rawbank stands out with solutions like Illicocash, which operates on a model similar to European neobanks but adapted to the African context, while telecom operators often face limitations in their scope of action.