Telecom
Mobile Money Records Huge Growth in Sub-Saharan Africa in 2021
Mobile money adoption and use saw continued growth in 2021, processing a record US$1-trillion annually. The industry enjoyed a substantial increase in the number of registered accounts, up 18% since 2020 reaching 1.35 billion globally. The volume of person-to-person transactions were up to more than 1.5 million every hour.
This is according to the GSMA’s annual ‘State of the Industry Report on Mobile Money’ released this week
The report reveals that one of the most significant drivers of growth was merchant payments, which almost doubled year on year. It also highlights how mobile money continues to act as a core pillar of financial and economic inclusion, particularly for women.
While the research provides a global view of the mobile money milestone of US$1-trillion in processed transactions, it also breaks down the contribution of the different global regions including Africa.
Growth hugely evident in Sub-Saharan Africa in 2021
The organisation stated that globally, mobile money growth was hugely evident in Sub-Saharan Africa in 2021, the mobile money industry had 316 live services, 1.35bn registered accounts, 346 million active accounts, US$53.9-billion in transaction volume and US$1-trillion in transaction value.
“Regionally, Africa contributed the following to the overall 2021 mobile money figures: 173 live services, 621 million registered accounts, 184 million active accounts, $36.7bn in transaction volume and US$701.4-bn in transaction value.”
The GSMA added:
- Eastern Africa contributed 59 live services, 296 million registered accounts, 102 million active accounts, US$24-billion in transaction volume and US$403.4-billion in transaction value.
- Western Africa contributed 69 live services, 237 million registered accounts, 58 million active accounts, US$9.3-billion in transaction volume and US$239.3-billion in transaction value.
- Central Africa contributed 19 live services, 60 million registered accounts, 19 million active accounts, US$2.9-billion in transaction volume and US$50.1-billon in transaction value.
- Southern Africa contributed 14 live services, 13 million registered accounts, 4 million active accounts, US$335-million in transaction volume and US$4.9-billion in transaction value.
- Northern Africa contributed 12 live services, 15 million registered accounts, 1 million active accounts, US$77-million in transaction volume and US$3.7-billion in transaction value.
Providing significant growth in merchant payments
Mobile money diversified its value proposition beyond person-to-person transfers and cash-in/cash-out transactions in 2021. It is now playing an important role in the daily lives of people and businesses, especially in low and middle-income countries (LMICs).
The growth of ecosystem transactions such as merchant payments, international remittances, bill payments and bulk disbursements, together with interoperable transactions, are accounting for a more significant share of the global mobile money transaction mix.
Merchant payments were instrumental in the growth of the mobile money industry in 2021.
The value of merchant payments almost doubled, reaching an average of US$5.5-billion in transactions per month.
Providers are demonstrating that they can attract businesses to their platform with better incentives, such as efficient remote on-boarding processes. For example, since Safaricom’s M-Pesa began allowing companies to register for an account online in Kenya, more than 18% of new merchants are self-on-boarding.
“2021 was the year mobile money started to really diversify to B2B services. Beyond traditional person-to-person transactions, such as transferring money to family or friends, the industry is now central in helping small businesses operate more efficiently, and serve their customers better” said Max Cuvellier, Head of Mobile for Development, GSMA.
According to the GSMA during the last decade, the mobile money industry has transformed from being a money transfer service to financially empowering people.
Research shows that since 2012, the number of mobile money deployments has almost doubled, increasing from 169 in 71 countries, to 316 in 98 countries.
The GSMA stated: “Despite the ongoing pandemic, the industry achieved double-digit growth across all key indicators, signalling sustained momentum and growth in the industry. In 2021, the mobile money industry processed a record US$1-trillion … (and) a substantial increase in the number of registered accounts, up 18% since 2020 reaching 1.35 billion globally.”
Increasing financial inclusion for women
Mobile money has also been a driving force for financial inclusion for the world’s most vulnerable, particularly women. Mobile money is empowering women to take more control over their finances and purchase goods that they urgently need.
Additionally, 44% of providers responding to the GSMA Global Adoption Survey now offer credit, savings or insurance products, creating opportunities for underserved individuals to invest in their livelihoods and futures.
With the gender gap in mobile money account ownership raging from 7% in Kenya to 71% in Pakistan – there remain some barriers to vulnerable people benefitting from mobile money.
The GSMA has found that owning a mobile phone is an obvious pre-requisite to using mobile money, and women across LMIC’s are 7% less likely than men to own a mobile phone. Overall, 143 million fewer women own a mobile than men. Additional barriers to mobile money access include a lack of awareness of mobile money and a deficit in perceived relevance, knowledge and skills.
While some progress has been made, the report makes clear that more must be done to address the mobile money gender gap across LMICs.
Concerted action is required from policymakers, the private sector, donors and other stakeholders to learn from success stories, address the issue and ensure that existing gender inequalities are not further entrenched, especially in light of the COVID-19 pandemic.
Access to humanitarian aid
As highlighted in the report, in 2022, the number of people needing humanitarian assistance is predicted to soar to 274 million. Mobile money is expected to play an increasingly important role in both donations – where it makes delivery systems more efficient and transparent for humanitarian actors and donors – and the receipt of aid.
The UN Refugee Agency sent US$700-million in cash and value assistance (CVA) to 8.5 million recipients in 100 countries in 2020. They have set up digital payment programmes in 47 countries,15 of which use mobile money. In many humanitarian settings, the digitisation of CVA via mobile money has the potential to promote agency and dignity, and foster financial inclusion.
Telecom
NCC Calls on Judiciary to Champion Nigeria’s Digital Transformation
Nigerian Communications Commission (NCC) has emphasized the judiciary’s crucial role in Nigeria’s digital transformation. During the Annual Workshop for Judges on Legal Issues in Telecommunications, Executive Vice Chairman Aminu Maida highlighted the judiciary’s reliance on digital tools to enhance justice delivery.
He stressed the need for special protections for telecommunication infrastructure, which faces disruptions from vandalism, theft, and restricted access.
Maida called for judicial support to implement the Presidential Order designating telecommunications infrastructure as Critical National Information Infrastructure.
This order prohibits unauthorized actions against such infrastructure without a lawful court order.
The judiciary’s role in protecting fundamental rights, enforcing digital contracts, and developing digital jurisprudence is vital for Nigeria’s digital transformation.
Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, commended the NCC’s efforts to protect consumers from unfair practices and emphasized the judiciary’s commitment to the telecommunications sector.
She highlighted concerns such as cybersecurity risks, consumer data protection, and the need for improved dispute resolution frameworks within the digital economy.
The workshop aims to equip judicial officers with the technical expertise required to address emerging legal challenges in telecommunications.
Nigeria’s digital economy has significant growth potential, with projected revenues of $18.30 billion by 2026, expected to create employment opportunities, reduce poverty, and promote innovation.
The NCC is working with key stakeholders to ensure the seamless implementation of the Presidential Order and to keep Nigeria competitive in the global digital economy.
Telecom
Empowering Nigerian Entrepreneurs: 15Wins Ventures Unveils Z-Habitat Hub
15Wins Ventures, a Dutch-based venture builder, officially launched Z-Habitat Hub in Lagos on Thursday, October 24, 2024, marking a new chapter in the company’s efforts to support innovation and entrepreneurship in Nigeria.
The launch was attended by key dignitaries, including The Netherlands Ambassador to Nigeria, His Excellency Bengt van Loosdrecht; The Netherlands Consul General in Lagos, His Excellency Michel Deelen; Sonia Onovughakpo Fajusigbe, Policy Advisor on Entrepreneurship, Youth Employment & Health Care, Consulate General of the Netherlands in Lagos; Valkamiya Ahmadu, Senior Policy Advisor on Economic & Political Affairs (Abuja); and Adebola Adebowale, Chief Program Analyst for Lagos State.
Commenting on the significance of Z-Habitat in driving innovation and creating equitable opportunities for underserved communities, His Excellency Bengt van Loosdrecht said, “We see Z-Habitat Hub as a powerful connection point – a place where ideas can take root and thrive through collaboration.
“Many people in the west do not realize that Nigeria is a country on the brink of transformation.
“The domestic private sector, driven by young, well-educated individuals, is flourishing. This is a dynamic I have seen in other rapidly developing regions, and I believe Nigeria’s youth are on the cusp of an exciting future.’’
His remarks preceded the ribbon-cutting ceremony, which officially opened the hub’s doors to the Nigerian innovation ecosystem.
The Z-Habitat Hub will host various programs, including workshops, mentorship sessions, and networking events, all aimed at empowering Lagos’s startup ecosystem.
The hub’s mission aligns with 15Wins Ventures’ goal to build a sustainable foundation for African tech development, bridging resources from its base in the Netherlands to local talent in West Africa.
Reflecting on the vision behind Z-Habitat, Nelson T. Ajulo, Chief Executive Officer of 15Wins Ventures, highlighted the hub’s role as a transformative force within Lagos startup ecosystem.
“Z-Habitat is a place where technology, creativity, and entrepreneurial spirit come together.
“Our mission is to provide local entrepreneurs and creatives with the resources, mentorship, and networks they need to turn their ideas into impactful solutions,” he said.
“Through Zarttalent, we have trained nearly 500 students and provided scholarships to underserved women. Now, with Z-Habitat, we are expanding our commitment to empowering Nigeria’s youth and broader community.’’
Guests were welcomed with a guided tour of the facility, led by Nelson, offering a firsthand look at the state-of-the-art workspaces.
The event also featured an energetic performance by local drummers and a showcase of creative expressions by local artists.
The launch of Z-Habitat underscores 15Wins Ventures’ commitment to fostering homegrown innovation and providing a structured, supportive environment for Nigerian entrepreneurs.
As Lagos startup landscape continues to thrive, Z-Habitat is poised to play a critical role in helping entrepreneurs turn their ideas into impactful solutions that drive long-term growth.
Telecom
Treepz Drives Innovation, Wins Top Honors at African Union Event
Treepz, Africa’s leading corporate mobility startup, has been awarded the Best Startup Pitch in Africa at the 15th Annual African Union Private Sector High-Level Conference, held in Lusaka, Zambia on October 31st – November 2nd, 2024.
Amidst the line-up of startups that pitched at the conference, this award, organized by the Global Innovative Initiative Group (GIIG), was presented to Treepz in recognition of its innovative contributions and significant impact on transforming the mobility landscape across Nigeria, Ghana, Uganda, and Kenya.
In addition to winning the Best Startup Pitch in Africa award, Treepz was recognized across the continent and was awarded $5000 and $3,500 from the African Export-Import Bank (Afreximbank) and Google, respectively.
Commenting on the award, Onyeka Akumah, Founder and CEO of Treepz, stated, “We are honoured to have received several recognitions on the continent, including the Best Startup Pitch in Africa, for our work in the mobility sector across four countries”.
“We are also grateful to Jo Griffiths, Founder of GIIG for the extended invitation to pitch at the prestigious African Union private sector conference.
“The invitation speaks to our footprints in Africa and how we have consistently delivered exceptional mobility services to our customers, both home and beyond”, Onyeka added.
Global Innovation Initiative Group (GIIGvelopment and People at Treepz delivered the pitch and received the award on behalf of the startup.
She expressed her excitement, noting that Treepz is well-positioned to significantly empower millions of daily commuters through the advancement of shared mobility across Afric) is a venture capital investment firm committed to enabling African tech entrepreneurs to thrive in businesses that pioneer innovative global solutions that meet the most pressing challenges of the time.
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