Telecom
Towards Cashless Societies: Mobile Money Leading the Way in West Africa
Lauded as one of the 21st century’s most transformative financial tools, mobile money has significantly inspired financial inclusion by providing previously unbanked and underbanked populations the access to essential financial services.
This innovation empowers individuals and businesses with the tools to send and receive remittances, make seamless payments for goods and services and save money, while ultimately contributing to faster economic growth and development across the region.
Research from GSMA’s The State of the Industry Report on Mobile Money 2024 reveals that over the past decade, increased adoption of mobile money services has significantly improved GDP. This has contributed an impressive USD 600 billion to the economies of countries utilising these platforms. This finding reaffirms the transformative economic potential of mobile money as it drives entrepreneurship, increases consumer spending and enhances overall economic activity.
The popularity of mobile money in East Africa has not only redefined the scope of financial inclusion but has also spurred significant economic growth and altered consumer behaviour within and outside the region. Specifically, the success of platforms like M-Pesa has provided a powerful blueprint, easily demonstrating how mobile money can democratise access to financial services and drive socio-economic development.
This SeerBit whitepaper casts a deep look at mobile money’s regional adoption trends, its economic contributions and the challenges of scalability, while advocating for urgent, collective action to unlock mobile money’s benefits, paving the way for a more connected and prosperous future in the region.
Rise of Mobile Money Adoption Across West Africa
The Macroeconomic Performance and Outlook (MEO) report developed by the African Development Bank Group notes that Africa will account for 11 of the world’s 20 fastest-growing economies in 2024 – with the continent set to remain the second-fastest-growing region after Asia.
Mobile money adoption is playing a significant role in this growth.
In the 10 years leading up to 2022, mobile money contributed USD 600 billion to the GDP of countries with a mobile money service, according to the GSMA’s The State of the Industry Report on Mobile Money 2024 (SOTIR 2024).
Spotlighting West Africa in particular, which currently has a population of over 451 million (United Nations), West African Economic and Monetary Union (WAEMU) countries have seen increased financial account ownership since 2014, with mobile money accounts witnessing increased adoption and usage. On average, 41 percent of adults in the WAEMU have an account with a bank or similar institution or with a mobile money service. Senegal has the highest account ownership rate at 56 percent, but the country still falls 15 percent below the developing economy average.
In Nigeria, where a majority of adults remain unbanked or underserved due to the limitations of traditional banking infrastructure, the country’s dynamic fintech sector is bridging those gaps with mobile money, digital payment platforms and wallets to reach underserved populations in rural and remote areas. While digital transactions have grown, they are yet to exceed cash-based transactions. A recent GSMA report reveals that Nigeria’s mobile money account ownership increased to 22 percent among all adults that are aware of mobile money and have used a mobile phone in 2022 and the number of adult account owners who have used mobile money in Nigeria in the last 30 days increased to 80 percent – this was up from 61 percent in 2021.
Global Findex data suggests there are opportunities to accelerate ownership and usage through digital financial enablement.
What You Should Know About Mobile Money in West Africa
Here are some interesting things to note about the adoption and effectiveness of mobile money in West Africa.
Mobile money is bridging the financial inclusion gap in West Africa
If there is one thing industry critics can agree on, it is that mobile money services continue to play a critical role in financial inclusion across the continent, providing a secure and convenient platform for transactions, bill payments and access to banking services, highlighting the demand for accessible financial services where traditional banking infrastructure is minimal and as such unable to address the needs of the populace.
Mobile money has had a gender-equalising effect in most countries, except for Côte d’Ivoire, which has a 13 percent gap due to males having adopted mobile-based accounts at a higher rate.
Mobile money has also enabled more women to save money than other financial services. For instance, in Senegal, only six percent of women saved using a traditional bank or other financial accounts in 2021, whereas four times more women chose mobile money to save.
Enabling regulation has led to greater access to and use of mobile money
As an important solution in the provision of basic transactional financial services to populations largely underserved by formal financial institutions, mobile money services are subject to a range of regulations.
It has generally been accepted by regulators, mobile money providers and investors that regulation has a material impact on mobile money adoption and usage. Regulation affects the ease with which new customers can enrol to a mobile money service and the range of services offered, as well as the commercial and operating environment for providers and investors.
Fintechs are instrumental to making mobile money a success in West Africa
Fintech companies in Nigeria are collaborating with traditional banks to tailor services to the evolving needs of Nigerian consumers and businesses. These offerings pair a range of traditional banking products such as savings accounts and bill payments with innovative tech solutions such as lending platforms, virtual investment advisors, digital insurance products, and digital remittance solutions.
Fintech platforms such as SeerBit offer more widely accessible financial products that can help close the unmet credit demands of micro, small and medium-sized businesses in the country. A 2022 IFC Nigerian SME Finance Market report estimates this is around 13 trillion Nigerian naira (equivalent to USD 9 billion today). These products include invoice financing services, supply chain finance solutions, inventory management systems, data analytics tools, digital capital investment, digital assets, neo-banking and digital accounting and bookkeeping tools tailored to their needs.
West Africa Making a Bold Statement With Mobile Money
Despite several infrastructural, economic, social and regulatory challenges in West Africa, countries in the region are making meaningful strides to address all these areas. This is evidenced by countries in the region leading the mobile money adoption race globally. In 2023, over a third of new registered and active 30-day accounts globally were from West Africa and these accounted for transaction volumes of 19 billion, an increase of 40 percent from the previous year and transaction values of USD 347 billion, also up 40 percent from the previous year.
Mobile money adoption in West Africa is booming, with the GSMA reporting over 500 million active mobile money accounts in the region by 2023. The World Bank highlights that mobile money transactions are growing rapidly, driven by increased smartphone penetration and financial inclusion efforts. Despite this progress, challenges persist, including regulatory hurdles and infrastructure limitations. According to the GSMA, over 40 percent of the region’s population remains unbanked, which hampers broader adoption. Additionally, cybersecurity threats and digital literacy gaps could inhibit future growth. Addressing these challenges will be crucial for sustaining the upward trajectory of mobile money in West Africa.
Towards Cashless Societies
In January 2024, Bloomberg reported that six of the top 10 performing economies in the world were predicted to come from Sub-Saharan Africa. The continent’s youthful population is also an enormous opportunity for economic growth.
Africa also has the advantage of having fewer legacy challenges to deal with and is, therefore, adopting digitised solutions faster out of necessity.
Today’s technologies are a good indicator of the scale and speed at which technology is transforming traditional socioeconomic sectors across the continent. African countries are implementing key policies to accelerate digital payments adoption, creating a competitive market with solutions tailored to the underserved.
How Can Africa Further Accelerate the Growth and Adoption of Mobile Money?
Connectivity is critical.
Widespread internet access would enable card-based transactions at merchant/agent locations. Offline solutions and strong interoperability policies are crucial for addressing connectivity challenges.
What’s the Future Outlook on Mobile Money Adoption?
In two words: Quite positive.
Beyond improving financial inclusion and access to other digitally enabled services, the adoption, use and growth of mobile money are now reflected in macroeconomic indicators – an increase in mobile money adoption will inevitably lead to a rise in GDP.
The emergence of mobile money as an alternative cashless currency has fundamentally changed the way people access financial services, enabling millions of unbanked individuals to store and manage money through their mobile devices.
However, despite this progress, a significant portion of Africa’s population remains outside the traditional banking system, facing limited and costly banking services.
Ease in regulation has played a key role in driving mobile money adoption in West Africa. As mobile money continues to gain traction, it is crucial that the regulatory frameworks in many West African nations evolve to meet dynamic needs. Effective regulations are essential to protect consumers while encouraging new entrants and consistent innovation in the market.
By establishing a robust regulatory environment, African countries will ensure that mobile money remains a powerful tool for economic empowerment and financial inclusion, ultimately driving sustainable development across each region.
Download the full report for free here.
Ayotunde Coker, chief executive officer of OpenAccess Data Centre has described Open Access fabric, the company’s Africa-led interconnection platform as key driver of a digital economy, offering a range of virtual connectivity services from Open Access Data Centres (OADC) facilities.
Empowered by West Indian Ocean Cable Company (WIOCC), extensive digital backbone, OAfabric offers enterprises and service providers access to diverse digital ecosystems, supporting user-to-service, user-to-user and site-to-site connectivity.
Coker stated this during a tour of Open Access Data Centre facility in Lagos by some journalists recently.
According to him, “designed as a future-ready foundation, OAfabric unites cloud and local connectivity with OADC’s market-leading colocation solutions, establishing an innovative, scalable African infrastructure platform that addresses both local and global digital transformation demands.
“OA fabric offers a reliable, adaptable interconnection platform to support Africa’s growing digital needs and hybrid infrastructures for local and global providers
“Enabling secure, direct cloud connections, OA fabric supports data sovereignty and fosters local provider growth, OA fabric provides IX peering, virtual interconnection, and tailored IP services for Africa’s digital landscape.
“It’s not about a particular service provider, it’s about everybody. Once you have a network and you are able to route traffic, even if you are not live yet, and you are hoping to come in the future, we are waiting for you to come on board. So, that platform converges everybody.
“With Open Access fabric, everyone is expected to interconnect. You are collaborating with the government. You are collaborating with the banks. We are collaborating with all these guys to interconnect everyone, Microsoft, Google, all the cloud companies connect into it, because we already have the connectivity business”.
He noted that, “Through OA fabric, all the other connectivity providers have access to any content on OA fabric, so SMB, SMEs, MSMEs, who probably doesn’t have a registered business, but on social media, selling clothes and things like that, can have cost effective access to resources on the internet.
Speaking on Metro fiber project which OADC is partnering with WBT, Coker explained that they have covered over 5 million homes in Lagos. “The job of the Internet Service Provider or MNO in the project is to maintain relationship with the residents of that area, make sure that the infrastructure is secured”.
Telecom
MTN Nigeria and Pan-Atlantic University Invite Media Practitioners for 4th Media Innovation Programme
MTN Nigeria Communications Plc and the School of Media and Communication, Pan-Atlantic University, have announced a call for applications from qualified media practitioners (including content creators) to participate in the 4th edition of the MTN Media Innovation Programme (MTN MIP-4).
The programme commences on May 19, 2025, on the Main Campus of the Pan-Atlantic University, Ibeju-Lekki, Lagos.
In collaboration with the School of Media and Communication, Pan-Atlantic University, MTN Nigeria launched MIP in 2022 to enable media practitioners gain deeper insight into the ever-evolving media landscape.
The six-month fully funded certificate fellowship, which includes a study visit to the University of Johannesburg, South Africa is open to media practitioners across all strata of the media industry including print, electronic and online platforms. The programme is also open to social media content creators.
“When we launched MIP in 2022, our goal was to enhance media professionals’ reporting capabilities and deepen their understanding of the technology sector, empowering them to become true media innovators. Seeing the impact of the programme over the past three years has been both inspiring and humbling.
“We are proud to continue this initiative and invite all eligible media professionals and content creators to seize this opportunity by applying for the fourth cohort,” said Tobe Okigbo, Chief Corporate Services & Sustainability Officer, MTN Nigeria.
Speaking on the impact of the programme, the Dean, School of Media and Communication (SMC), Pan-Atlantic University, Dr Ikechukwu Obiaya, said that the programme continues to improve and evolve.
“Given the challenges of today’s fast-changing media space, there is an ever-greater urgency to cultivate a new generation of media professionals who will drive innovation and excellence to meet today’s media needs.
“SMC will leverage its extensive experience in training media professionals to equip this next cohort. And we will do this with our usual emphasis on creativity and ethics.”
At the end of the training, the 20 successful applicants, who will qualify as Fellows, will have been trained on Nigeria’s technology sector, the relationship between media and technology and improved content creation opportunities. They will also be equipped with the skills to adapt to the changing realities that guarantee career and financial success in their professional practice. Fellows will also have access to professional resources and mentorship from PAU’s erudite faculty.
Interested journalists, bloggers and content creators can apply at https://bit.ly/MTN_MIP2025
Applications open on Monday, March 24 and close on Monday, April 7, 2025.
A new study commissioned by Visa reveals a rise in consumer awareness and proactive security measures for digital payments across Central and Eastern Europe, the Middle East, and Africa (CEMEA).
The ninth annual Stay Secure study, which surveyed 5,800 adults across 17 diverse CEMEA markets, found that 98% of consumers now actively take precautions to secure their online transactions, showcasing increased savviness as digital payments gain momentum.
While 64% of respondents in Nigeria acknowledge their vulnerability to scams like phishing, the increased adoption of security measures and preference for stronger authentication indicate a positive shift in consumer behavior since the last edition of the Stay Secure study in 2023. Consumers are now actively spotting red flags and verifying the legitimacy of online interactions, showing a marked increase in awareness.
Other key insights emerging from the research bode well for the continued acceleration of digital payments across the region, with over three-quarters of all respondents stating that they mostly or completely trust digital payments, regardless of the threat of fraud. 86% of consumers across Nigeria anticipate that they will increase their use of digital payments over the next year.
“The digital payments landscape is evolving rapidly, and consumers across Nigeria are embracing its convenience while becoming more vigilant about security,” said Andrew Uaboi, Vice President & Head, Visa West Africa.
“Consumer education is our best defense against fraud, and industry collaboration makes this possible. As scams grow more sophisticated, the battle for security never stops. Consumers increasingly trust partners who take tangible steps to protect them.”
The ‘Stay Secure’ study highlights evolving consumer preferences, which could offer Visa’s stakeholders actionable intelligence for trust-building strategies and inform the creation of educational materials to empower consumers against fraud.”
Key Findings of the Visa Stay Secure Study:
– 94% surveyed in Nigeria utilize e-commerce payment methods.
– 82% surveyed in Nigeria are more likely to trust payment programs run by the government (e.g., instant payments, local cards, etc.) if they partnered with a well-known brand like Visa.
-51% surveyed in Nigeria feel more secure using digital payments.
-56% surveyed in Nigeria leverage online credit or debit card payments.
– 54% surveyed in Nigeria note that news about cyber fraud (e.g., data breaches, email scams, phishing, etc.) has impacted their use of digital payments.
– 43% rank Boomers (60-78) as most likely to fall victim to online scams.
Visa’s Commitment to a Secure Digital Future
Visa has been at the centre of AI in payments, investing $3.3 billion in our AI and data infrastructure over the last decade. In 2024, it introduced three new AI-powered risk and fraud prevention solutions, as part of the Visa Protect suite, that are designed to help reduce fraud across immediate A2A and card-not-present (CNP) payments, as well as transactions on and off Visa’s network.
As the world’s largest SaaS platform, Visa combats cybercrime by deploying cutting-edge tools, expertise, and processes to help identify and mitigate fraud. The impact is undeniable: In the past year, Visa blocked $40 billion in fraudulent payment value, prevented 80 million fraudulent transactions, and averted over $122 million in estimated e-commerce fraud through malware detection.
Authorities Seize 1842 Devices in African-Wide Cybercrime Crackdown
Police Arrest 4 Bank Staff over Alleged ₦270m Fraud, Money Laundering
Enza Raises $6.75m Seed Funding to Boost Embedded Payment Solutions Across Africa
NIMC to Prosecute Nigerians Printing ‘NIN Cards’, Says Only Slip is Legal
FG, UK FCDO, and Ghana Partner to Launch Sankore
News2 days agoNIPOST Explains Clamping Down on Illegal Logistics Services in Enugu
Broadcasting2 days agoNGO Blasts MultiChoice for Tariff Hike in Nigeria, Slash in South Africa
E-Business2 days agoOtti, Abia State Gov Promises Internet Access for all Abia Communities in 9 Months
Telecom2 days agoTelcos Mull Introduction of Different Tariff Plans for Different States
E-Financial2 days agoCITN Seeks AI to Curb Revenue Leakage in Nigeria’s Tax System
News2 days agoNESREA Urges Nigerians to Dispose Batteries Properly to Avoid Hazards
News2 days agoTony Elumelu Foundation Grants $15m to 3,000 African Entrepreneurs
E-Financial2 days agoSEC Declares War on Capital Market Fraudsters