Sub-Saharan Africa has seen a surge in mobile money account ownership over the past year, leading to a rise in digital transactions and transforming the financial landscape in the region.
According to recent reports, the ownership of mobile money accounts in the region has increased by 6% from 16% in 2021 to 22% in 2022.
This growth is largely attributed to the recent Payment Service Bank licenses granted to MTN and Airtel by the Central Bank of Nigeria.
The State of the Industry Report on Mobile Money 2023 states that Sub-Saharan Africa saw a 13% year-on-year increase in registered mobile money accounts, growing from 1.4 billion in 2021 to 1.6 billion in 2022.
The region also witnessed a significant rise in digital transactions, particularly interoperable bank transfers and bill payments.
This growth has been a game changer for financial inclusion in the region, providing access to financial services for underserved populations. Mobile money accounts have become a key tool for small business owners, farmers, and low-income earners who were previously excluded from the formal financial system.
The report further noted that cash usage is slowing down, with the share of cash-based transactions in the overall transaction mix declining. This shift is due to a rise in digital transactions, with transaction values growing by 22% between 2021 and 2022, from $1tn to around $1.26tn.
Nigeria and other Sub-Saharan African countries recorded a transaction value of $832bn in 2022, signaling a shift towards a cashless society. This is a significant development in a region where cash has traditionally been the dominant means of payment.
The report also highlighted the growth of mobile money agents, which increased by 41% year-on-year in 2022. These agents are an important part of any mobile network service and were responsible for two-thirds of all cash-in transactions in 2022.
Overall, mobile money has revolutionized financial inclusion in Sub-Saharan Africa, providing access to financial services and transforming the region’s financial landscape. The surge in digital transactions is a sign of a growing cashless society, which is expected to continue as more people embrace mobile money as a means of payment.
