A United Nations Conference on Trade and Development (UNCTAD) news item had opined (more than five years back) that mobile money holds the key to financial inclusion in Africa. Today, this opinion has transformed into ground reality; one that’s validated by the International Monetary Fund (IMF) report that “Africa is now home to nearly half of the 700 million users of digital financial services worldwide.” 

The credit for this progress goes to the steady increase in mobile phone penetration on the continent – projected to surpass 50% by 2025 – that has amplified peoples’ access to banking, finance, and insurance services; particularly in remote and rural areas. The deployment of digital communication technologies has helped overcome physical infrastructure constraints, giving a wider customer base access to financial services. 

The good news doesn’t end there. According to the GSM Association’s (GSMA’s) State of the Industry Report on Mobile Money 2023, there are 1.6 billion registered mobile money accounts globally today, of which 781 million are in Africa alone, with accounts on the continent expected to increase by 17% year-on-year.

In the context of how mobile money services are spurring financial inclusion, the statistics I’ve shared indicate the following – 

1) Greater accessibility to mobile money services is fostering financial inclusion – In places where traditional banking infrastructure is lacking, mobile money payments are making financial services available to people at affordable rates; even in the remotest corners of the continent.

2) Financial autonomy through mobile money services is ensuring financial inclusion – The simplicity of mobile money transactions makes them easy to use by individuals with limited literacy and numeracy skills. Users who may have felt excluded from traditional banking systems feel empowered and in-charge of their finances when they conduct successful mobile money transactions.

3) Economic empowerment of women through mobile money-led financial inclusion is gathering steam – Till as recently as 2021, Africa had one of the widest digital gender gaps worldwide. However, the rise in mobile device penetration and easy access to internet connectivity have altered the picture where gender-specific financial inclusion is concerned. 

This is validated by the Women’s World Banking 2023 Fintech Innovation Challenge’s findings that say “Digital financial services can serve as an on-ramp for low-income women to adopt, and use, a large suite of formal financial products and services, expanding their choices and their financial and economic resilience, and empowerment.”