The number of Mobile Money accounts in Africa jumped from 562 million in 2020 to 856 million in 2023, reflecting a 52% growth, according to a report by the GSMA, titled "State of the Industry Report on Mobile Money." This report examines the global growth of Mobile Money services.
Active accounts, defined as those used within 30 days, also increased by 47%, from 161 million in 2020 to 237 million in 2023. In 2023, Africa led the world in Mobile Money transactions, with 62 billion transactions totaling $919 billion. This accounted for 65.6% of the $1.4 trillion that passed through Mobile Money accounts globally.
Mobile Money Account Growth by Year:
The surge in Mobile Money adoption can be attributed to several factors. According to the GSMA, the COVID-19 pandemic accelerated the shift toward digital services, providing a safe and convenient alternative for financial transactions.
In a 2022 report, "Digital Finance Platforms to Empower All," from the United Nations Development Programme (UNDP), telecom operators Vodafone Group, Vodacom Group, and Safaricom highlighted other factors behind the growth. Aiaze Mitha, a fintech and sustainability expert, emphasized the crucial role of mobile operators. With their large customer bases, these operators have built strong commercial networks, brand recognition, and marketing power.
Mitha also pointed out that necessity drives Mobile Money adoption. He explained that as people moved from rural areas to urban centers, they needed a way to send money to relatives in remote areas. Similarly, small businesses required efficient ways to receive payments from customers and pay suppliers.
Challenges in the Mobile Money Sector
Despite this growth, the Mobile Money sector faces several challenges. Some African governments have imposed taxes on Mobile Money transactions to boost local revenue. In countries like Tanzania and Ghana, where transaction taxes were in place between 2021 and 2023, many Mobile Money users reverted to cash. This shift reduced taxable transactions and ultimately lowered overall tax revenues.
The GSMA also noted that a lack of financial literacy remains a significant barrier to Mobile Money adoption among vulnerable consumers.
Addressing these challenges carries important economic implications. According to the "Digital Finance Platforms to Empower All" report, countries that successfully adopt Mobile Money see an average annual GDP per capita growth of 1%. Additionally, the "State of the Industry Report on Mobile Money 2024" indicates that a 10% increase in Mobile Money adoption could raise GDP by 0.4% to 1%.
Botswana signs $12 billion investment agreement with Qatar’s Al Mansour Holdings Deal spans ...
• Shell to drill 5 new exploration wells in Namibia’s PEL 39 block in 2026.• Campaign aims to better...
Zambia and Qatar’s Al Mansour Holdings signed a $19 billion partnership in Lusaka. The...
• President Ruto projected 5.6% growth for 2025, higher than the Finance Ministry’s 5.3% and Central...
• AU launches campaign to replace distorted Mercator map projection• Equal Earth map promoted to sho...
The cabinet has approved preparations for a debut USD 1.5B Eurobond before June 2026 to fund key infrastructure projects. Investors await details on...
ISACA and INGRYD Academy launch program to train 10,000 Nigerians in tech by 2030 Each year 2,000 students will get training, ISACA certifications,...
Botswana signs $12 billion investment agreement with Qatar’s Al Mansour Holdings Deal spans infrastructure, energy, mining, agriculture, tourism,...
Government sets 2025/26 wheat output target at 6,000 tonnes, more than double last year’s harvest. Production area rose tenfold in 2024/25 to 1,342...
Yambi City is an annual festival that takes place every year-end in Kinshasa, driven by the Afrika Diva collective and spearheaded by activist rapper...
Galerie36 in Dakar showcases modern African art, fostering cultural exchange. Ayofemi Kirby’s intimate gallery redefines art spaces with a community...