An emoney accountwallet that is primarily accessed using a mobile phone that is. Mobile money has also been seen as a lifeline to a number of social and economic clusters in africa, from the increasing number of agents, growing from 100,000 agents in 2011 to 1. Mpesa, a leader in the industry, celebrates 10 years of dominance in countries such as kenya and uganda. Apr 27, 2017 over the past five years, the number of 90day active accounts in west africa increased faster than registered mobile money accounts, from 9.
For the mobile money industry to succeed in south africa there are few things that need to be fixed. Remit is a remittance transfer service built by eversend ltd that offers realtime debit or credit card to mobile money transfers from all over the world to registered mobilemoney users in uganda, kenya and rwanda. Remits advantage is that it is the fastest, cheapest, and safest way for africas diaspora to send money home. Tanzania also has more mobile money agents compared to kenya with a total of 32. The report africa mobile money market by transaction mode nfcsmart cards, direct mobile billing, mobile webwap payments, sms, stkussd, and others, nature of payment, location, type of purchase, and by country forecast to 2020, defines the africa mobile money market based on various transaction modes, nature of payments, location types, and types of. In the long term, it is desirable for the program to have the latitude to choose. Mobile phones and economic development in africa abstract we examine the growth of mobile phone technology over the past decade and consider its potential impacts upon quality of life in lowincome countries, with a particular focus on subsaharan africa. To compete in africas diverse mobile money markets, banks must offer distinctive mobile and digital services not only in payments and deposits, but across the spectrum of financial services. Regulatory impact on mobile money and financial inclusion in.
In a sign of how much of a mobileorientated the continent it is, subsaharan africa is projected to have 500m cellphone subscribers by. Leading mobile money operators in subsaharan africa paid out 47% of their revenues as commission. Mobile money in subsaharan africa and its implications by. Africa is the global leader in mobile money, which has become an important component of africas financial services landscape. On the new frontier of mobile and money in the developing. One business where the poorest continent is miles ahead. Saharan africa, has at least one social safety net. Mobile money has essentially become a household service in tanzania. As enthusiasm for mobilephonebased payments grows in africa, operators are rushing to get a piece of potentially lucrative and everexpanding markets. Regulatory impact on mobile money and financial inclusion. According to the tax proposals contained in the excise duty amendment act 2018, a tax of 1 per cent of the value of the transaction will apply on mobile money transactions on receiving money, making payments and withdrawals of money. Mobile money for business development in the east african community cecile barayre programme manager, ecommerce and law reform programme 24 october 20. Africas plight salary banking sector same day out bank fees for deposit and withdrawals fee structure is a disincentive to leave money in bank deposit fees prevent banks from getting cheap capital making money with the interest rate spread why would informal businesses or poor people put money into an account if charged for depositing and.
In this report we begin by identifying key users from the individuallevel transaction data of a mobile money provider in one east african country. The top 7 african countries for mobile money infographics. By and large, the mobile industry in africa continues to pave the way for innovation, providing ground breaking developments for the rest of the world. Mobile money markets are hugely popular in africa, offering easy, secure methods of payment and transfer of funds using simple textbased mobile technology. Bank did not have much latitude in the legal or regulatory framework to deal with. Why mobile money is big business in africa world economic forum. The report africa mobile money market by transaction mode nfcsmart cards, direct mobile billing, mobile webwap payments, sms, stkussd, and others, nature of payment, location, type of purchase, and by country forecast to 2020, defines the africa mobile money market based on various transaction modes, nature of payments, location types, and types of purchases with an indepth. In 2007, safaricom, a kenyan mobile communications operator, launched a more mature service called mpesa. About 61 million active mobile money customers were using the service globally, up from 37 million in 2012, gsma said. The connecting africa community site examines the challenges and.
Remit send money to uganda kenya rwanda mobile money. Sa money transfer fintech mama money has raised r250 000 in an internal fund for its field agents this, while linkdpro, a sa digital platform staff reporter startup news 5 may 2020. Although the data on mobile phone usage and ownership in subsaharan africa remains incomplete james and versteeg, 2007, p. Subsaharan africa 2017, shows that there were 277 million registered mobile money accounts in the region at the end of 2016 while the number of live mobile money schemes had reached 140 across 39 countries, accounting for more than half of the 277 mobile money deployments worldwide. Sep 25, 2015 the latest mobile money statistics indicate that users in east africa have largely continued to shift gdp to be transferred via various mobile money platforms. The impact of mobile money on monetary and financial stability in subsaharan africa 1 background mobile money has helped reduce the financial exclusion gap in low and middleincome countries, particularly in subsaharan africa, which had almost 400 million registered accounts at the end of 2018.
The connecting africa community site is intended for communications industry professionals, regulators, government officials, investors and enterprise cios who must ensure that they are up to date with the communications networking and services transformation underway in africa. Mobile money in africa mobile money and related financial services are continuing to see rapid growth in africa, and are of major interest to a number of businesses in the region from financial institutions and technology firms through to governments. Africas unbanked majority needs access to affordable tools for savings, loans, and credit. More recently, fintechs have established a solid footing in the market, and a number of banks are beginning to compete. Home to the continents largest adult 114 million and unbanked populations 60. Tanzania top country in mobile money usage in africa. The mobile phone revolution and the rise of mobile money, especially in east africa with platforms such as mpesa, has changed this.
East africa expands one network area to include data. Jul 11, 2017 in a sign of how much of a mobile orientated the continent it is, subsaharan africa is projected to have 500m cellphone subscribers by 2020. Africa, with its population of about 880 million people, is the poorest continent in the world world bank, 2001a, 2001b. East africas one area network initiative is being expanded to include data and mobile money services, a move expected to result in lower costs for subscribers. Subsaharan african will have 500m mobile users by 2020.
Mobile money, financial inclusion, and development in africa. Mobile money in africa press 1 for modernity middle. Africa mobile money is a mobile payments system based on accounts held by a mobile operator and accessible from subscribers mobile phones. Mobilemoneyafrica is fully owned and managed by go mobile nigeria, a registered nigerian firm operating on the african continent, in the digital financial services space in the last decade. State of the mobile money industry in subsaharan africa gsma. Mobile money is a mobile payments system based on accounts held by a mobile operator and accessible from subscribers mobile phones. What 1% new tax on mobile money transactions means. Many economists cite safety, efficiency, transparency, and ease of the services as reasons for the.
The gsmas mobile money for the unbanked mmu programme. Pdf on may 1, 2017, oscar correia and others published determinants of. Africa, isaac kabere njoroge and mercy buku of safaricom, and simone di castri, lara. This rapid expansion highlights the fact that there is clear need for safe, inexpensive, and efficient ways to send money around the country. Apr 16, 2015 as many as 30% of cell phone users in africa report that they participate in mobile banking a new report from the pew research center shows the transformative power of the cell phone in the worlds fastestgrowing market for mobile technology. Its a small geographic move across borders for kenyas safaricom but potentially, it is a giant step that could transform the story of mobile money and financial inclusion in africa. Although africa has a share of around 14 percent of. Over the last decade, africa has become a global leader in mobile money with the rate of smartphone adoption at twice the global scale. Mobile money has also been seen as a lifeline to a number of social and economic clusters in africa, from the increasing number of agents, growing from 100,000 agents in. May 17, 2016 over the last decade, africa has become a global leader in mobile money with the rate of smartphone adoption at twice the global scale. The background to the fast spread of mobile money in africa includes low financial access, quickly diffusing mobile communications infrastructure, and. Sep 03, 2014 as enthusiasm for mobile phonebased payments grows in africa, operators are rushing to get a piece of potentially lucrative and everexpanding markets.
A demi cannot withdraw money from the interest account except for distribution of interest to eligible e money holders. Telecommunicationict markets and trends in africa, 2007. Mobile money in africa is currently in use in 36 of the 47 countries in subsaharan africa, and is used prominently throughout east africa. Africa is currently rising as a major area where mobile money is spreading. Its no secret that even in countries where mobile money is slow in adoption like south africa, banks are watching with keen interest driven by fear of being left behind especially in a world. But what challenges is the industry facing and how can these be overcome. Apr 17, 2018 government is proposing a new tax on mobile money transactions. According to the 2015 global index report by the world bank, the countries whose penetration rate for mobile money accounts was over 10% were all located in subsaharan africa. In just four years, mobile money usage in tanzania has grown from zero to at least 5. African mobile trends 2016 jumia is pleased to present its second white paper on african mobile trends 2016. It further examines different regulations that have. It highlights differences among the 4 countries and their financial regulatory environment.
Mobile money in subsaharan africa and its implications. Kiep world economy update backgrounds the first mobile money service was launched in south africa in the year 2000. A tenfold increase in agent reach over five years may have driven. Government is proposing a new tax on mobile money transactions. Sep 19, 2014 africas unbanked majority needs access to affordable tools for savings, loans, and credit.
The growth of mobile money in africa the borgen project. Tanzanias registered users of mobile payment services increased to 41,380,791 as of december, 2014, from 31,830,289 in december, 20, marking a growth of 30% and reaching a ratio of 84% of adults using mobile phones for money transactions that surpasses kenyas rate at 68% according to the world bank wb. Mobile money in subsaharan africa and its implications 2 january 29, 2016. The conversion of cash into electronic value and vice versa happens at retail stores or agents. Over the past five years, the number of 90day active accounts in west africa increased faster than registered mobile money accounts, from 9.
Jul 27, 2017 mobile money has also been seen as a lifeline to a number of social and economic clusters in africa, from the increasing number of agents, growing from 100,000 agents in 2011 to 1. A different approach to mobile money in africa the economist. Mobile financial services mfs have become increasingly popular across the continent for many reasons. Live corridors for crossborder mobile money remittances initiatives. I have compiled a short list of some of my observations so far. Mobile money for business development in the east african. Pdf determinants of mobile money remittance in east africa. Mpesa, mtn, orange, others lead africas mobile money. Mobile money and payment infrastructure after mpesa bill maurer, director of the institute for money, technology, and financial inclusion. This graph shows mobile money deployments in subsaharan africa with activity rates 2% calculation. Transfer market a different approach to mobile money in africa. The latest mobile money statistics indicate that users in east africa have largely continued to shift gdp to be transferred via various mobile money platforms. As many as 30% of cell phone users in africa report that they participate in mobile banking a new report from the pew research center shows the transformative power of the cell phone in the worlds fastestgrowing market for mobile technology.
Money in west africa, 14 th to 16 march 2016, freetown sierra leone presented by. Tanzania is rapidly taking up digital financial services including mobile money with higher monthly transactions of 95 million compared to kenyas 93 million transactions. Mobile money is currently supplied centering in the east africa region including kenya, tanzania, somalia, and sudan, and also displays a high penetration rate in cote divoire and south africa. At the end of last year, there were more mobile money accounts than bank accounts in nine developing countries mostly in subsaharan africa, mobile industry lobby group gsma said. The use of cell phones to transfer money in modern africa. These countries have generally given mnos, and other nonbanks, latitude to lead mobile. Mobile network operators mnos have dominated mobile money services in africa for the past decade.
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