African Mobile Money Market Continues to Show Impressive Growth
The African mobile money market is expected to reach a value of $804 million in 2024 and $951 million by the end of the year. In the long term, the market is projected to reach an impressive $3.6 billion by 2033, according to the Global System for Mobile Communications Association (GSMA).
Key Statistics
- In 2023, there were over 709 million registered mobile money accounts across Sub-Saharan Africa.
- Mobile money had a significant economic impact, contributing approximately $190 billion to the region's GDP in 2023.
- The Kenyan market accounted for 24.7% of Sub-Saharan Africa's mobile money transaction value in 2024.
- Tanzania's mobile money transactions reached $62 billion in 2023.
- Uganda recorded $32 billion in mobile money transactions in 2023, with $28.6 billion attributed to person-to-person transfers.
Drivers of Growth
Several factors are contributing to the growth of the African mobile money market, including:
- Increasing smartphone penetration, which has enabled mobile money services to reach previously underserved populations.
- Young people have driven the rapid adoption of digital payment solutions, leading to increased usage rates.
- Government and private sector initiatives have played a crucial role in promoting innovation while protecting consumers.
- Regulatory frameworks in many African countries now encourage innovation while safeguarding consumers, with measures such as tax incentives, VAT reductions, subsidies for point-of-sale systems, and exemptions from mobile money taxes.
Improving Infrastructure
The cost of mobile data has decreased significantly, with the average cost of 1GB of mobile data in Africa dropping to $1.85 in 2023, a 42% decrease from 2020. Telecom operators and fintech companies have introduced innovative payment solutions, making mobile money more accessible and attractive.
Future Developments
The industry is currently abuzz with the idea of closer integration between mobile money services and digital platforms, which could lead to more seamless transactions and accessible financial tools for users. As the African mobile money market continues to grow, it is likely to have a profound impact on the region's economy and financial inclusion.
