Across Sub-Saharan Africa, mobile technology is forging a path toward greater financial inclusion, turning economic participation into a reality for millions. Mobile money services allow users to store, send and receive money using basic SMS services without needing a bank account or an internet connection and have emerged as a revolutionary force.
Through the reach of mobile networks and accessible mobile money services, underserved communities in some of the world’s most challenging regions are gaining the financial tools they need to plan, protect, and prosper. Today, mobile money is often hailed as one of Africa’s great success stories – and for good reason. Nowhere else in the world has mobile money adoption reached the levels seen in Sub-Saharan Africa, where it has become a cornerstone of the economy. Between 2013 and 2022, mobile money services contributed over $150 billion to the region’s GDP, effectively boosting economic output by 3.7%.
As the mobile money market matures, its product offerings are also evolving, with more sophisticated use cases now emerging to meet the diverse financial needs of users. Providers have extended beyond basic transactions, offering adjacent financial products like credit, savings, and insurance. Among these, credit has seen the fastest growth, with a 73% year-on-year increase in available products.
Despite significant progress, many low-and middle-income countries (LMICs) continue to face substantial challenges. According to Findex data, 1.4 billion people remain financially excluded, the vast majority of whom live in LMICs. Women are disproportionately affected, with a persistent digital gender gap: Women are 7% less likely than men to own a mobile phone and have lower levels of mobile money awareness and ownership of mobile money accounts. Furthermore, while there has been notable growth in mobile money account adoption, only 25% of accounts are actively used on a monthly basis, highlighting the need for greater engagement.
A wave of growth in West Africa
Nearly half of the 1.75 billion registered accounts globally are in Sub-Saharan Africa, with 20% in West Africa. West Africa’s vibrant economic ecosystem is a beacon of mobile money’s potential – in 2023, the region experienced the highest growth rate of registered accounts, an increase of 23% compared to 12% globally, making great strides in catching up to a maturing mobile money market in East Africa.
Within the West African Economic and Monetary Union (UEMOA) – including countries like Côte d’Ivoire, Senegal, and Mali – over 110 million new mobile money accounts were opened between 2018 and 2022. This growth in mobile money adoption has helped UEMOA improve financial inclusion from 56% in 2018 to 71% in 2022. Countries such as Nigeria, Ghana, and Senegal have been leaders in this movement, accounting for a significant share of new mobile money accounts globally.
Part of this explosive expansion can be attributed to enabling regulation, which has been a journey in West Africa, supporting innovation and driving mobile money growth. In 2006, for example, the Banque Central des Etats de l’Afrique de l’Ouest (BCEAO) introduced an e-money framework, allowing Mobile Network Operators (MNOs) to provide mobile money services, and more recently in 2018, the Central Bank of Nigeria introduced the Payments Service Bank (PSB) license, allowing MNOs to offer financial services.
Spotlight on Nigeria – a market transformed
For mobile money to thrive and reach its full potential in advancing financial inclusion, an enabling regulatory environment is essential – one that stimulates growth, encourages innovation, and lowers entry barriers for diverse providers. Nigeria is one such example, through its PSB license, a forward-thinking framework allowing MNOs to offer a wide range of financial services, from deposits and withdrawals to issuing debit cards. This approach has enabled major players like MTN’s MoMo PSB and Airtel’s SmartCash to rapidly expand, bringing millions of Nigerians into the financial fold.
Beyond the MNOs, non-MNO providers like OPay and PalmPay have played pivotal roles in deepening financial access. OPay’s widespread adoption is illustrated by its ranking as Nigeria’s most downloaded app in 2023. With growing smartphone penetration in Nigeria, there is increasing demand for app-based financial services. However, digital payments services accessible on feature phones should not be overlooked in a country where financial inclusion remains low at 45% and smartphone penetration, while increasing, is still only estimated to be around 45-60%.
This regulatory approach, focused on inclusivity and innovation, demonstrates how policies can stimulate growth, facilitate competition and expand access, especially in rural areas. Altogether, enabling a mobile money ecosystem that serves more diverse user needs.
Addressing the gaps in financial inclusion
While mobile money’s success is clear, barriers persist, particularly for women and other underserved populations. The digital gender gap, influenced by factors like limited device ownership, social barriers and lower financial literacy, continues to hinder equitable access.
For women, mobile money presents a vital pathway to financial autonomy, empowering them to manage their finances, invest in their futures, and safeguard against unexpected expenses. Yet, closing this gap will require concerted efforts to enhance digital literacy, promote awareness, and address societal norms that may sometimes restrict mobile technology ownership and use.
Financial literacy remains another critical area of focus. For many first-time users, understanding how to leverage mobile money to meet their financial needs – from budgeting to planning for emergencies – can be transformative. Increasing financial literacy programmes, particularly in rural areas, is an essential way of helping individuals make informed financial decisions and improving their overall economic well-being.
Policies and initiatives to drive broader adoption
Achieving universal financial inclusion through mobile money will require ongoing support from policymakers and regulators. Policy changes have been an important lever in the mobile money industry, but more can be done, and policy has to evolve alongside the industry so together they can meet evolving consumer needs. These frameworks are crucial for expanding financial access in LMICs and a point of focus for the GSMA’s Mobile Money Programme, which works to accelerate the development of this crucial ecosystem for underserved populations.
Active engagement from Governments, Mobile Network Operators and financial service providers will be essential to replicate the success seen in West Africa. Financial literacy programmes, targeting both men and women, will also play a significant role in ensuring that mobile money not only reaches but also empowers every user, building a more inclusive economy for Sub-Saharan Africa. This is particularly important given that the continent will account for more than half of the growth of the world’s population by 2050.
In the coming years, as mobile money continues to bridge the gap between financial exclusion and opportunity, it will be up to stakeholders to ensure that this powerful tool serves as a vehicle for broad, sustainable economic empowerment across the continent and beyond.
Ashley Olson Onyango
Ashley Olson Onyango is Head of Financial Inclusion and AgriTech at GSMA. Ashley is focussed on driving innovation and using mobile technology to improve financial inclusion and resilience in rural communities.
