E-Financial
Mobile Tech Tap to Drive Africa’s Financial Inclusion
New research urges African governments to work collaboratively with all role-players to introduce strong mobile tech-driven financial innovations in support of national development priorities and the social development goals (SDGs).
The study, “Digital finance platforms to empower all”, released last week by Vodafone Group, Vodacom Group, Safaricom and the United Nations Development Programme (UNDP), says this is how countries can accelerate progress and increase the impact of financial inclusion.
“The impact is potentially staggering, with the International Finance Corporation estimating digital finance has the potential to boost annual GDP of emerging economies by $3.7 trillion by 2025,” the report reads.
The analysis was conducted as part of the three telcos’ Africa Connected campaign, an initiative to drive sustainable development through collaboration and help close the divides that prevent progress in Africa’s key economic sectors.
The research, which examined 49 countries in Africa, Asia and Latin America, found that countries with successful mobile money services had an annual GDP per capita growth rate up to one percentage point higher than countries where mobile money platforms had not been successful or not introduced.
It says: “As post-pandemic economic recovery continues, with the cost of living and climate crises intensifying, governments are encouraged to leverage mobile financial services to strengthen financial inclusion, which increases economic resilience and furthers sustainable development.
“When managed correctly, mobile financial services can not only drive financial inclusion, poverty reduction and economic growth, but can also accelerate progress around the SDGs more broadly.”
According to the study, collaboration and strong partnerships underpin this success and will drive future acceleration of progress.
As such, it says, governments and multilateral organisations should engage all stakeholders, including the UNDP, the Africa Connected campaign, and other telecommunications, fintech and finance businesses, to make the recommendations discussed in this report a reality.
“In doing so, Africa can continue to equitably expand access to mobile financial services, with all stakeholders working together to ensure these services are delivered in a responsible way that unleashes their full potential on SDG achievement to uplift and empower all citizens.”
Principals of the report call upon African governments to urgently create an enabling legal and regulatory environment.
They say policy-makers must create an open and level playing field where financial regulators allow both traditional banks and non-traditional financial service providers to operate.
This, they say, will allow digital finance innovation to flourish through greater interoperability and openness of payment rails.
Aiaze Mitha, global lead, digital finance for the SDGs, at UNDP, says technology transformed financial access for Africans.
In the last decade, he says, more of the population has gained access to basic financial services, with the figure increasing from 23% of the population in 2011 to around 55% in 2021.
“A lot of that has been unlocked through mobile financial services, simply because more people have access to a connected mobile device.
“These services are complemented by a physical network of agents, who allow people to convert cash into digital currency so that they can start stepping into the formal financial system and start building up a credit history that will enable them to qualify for more sophisticated financial services.”
Looking ahead, Mitha notes there are a few obstacles Africa still needs to address around financial inclusion.
“First, there’s access to affordable mobile financial services, which includes such things as digital connectivity, devices and cost of broadband access. I’d say digital identity is also an issue.
“Being able to identify yourself so that you can access financial services is a major obstacle because there is a lack of digital identification in many countries across the continent.
“Fortunately, there are several players coming together to ensure digitalisation does not widen the digital and financial divide. In that sense, building capacity around financial and digital literacy will be a key element of greater, more qualitative financial inclusion.
“Finally, the notion of embedded finance must be raised. Many people will use financial services for a purpose, to fulfil a specific need, not just for the sake of it. For example, financial services are being built into specific e-commerce, transport, mobility, or social experiences and use cases.
“This will most likely open new avenues for even greater inclusion once people have the tools and connectivity to engage with these use cases.”
Securities and Exchange Commission (SEC) has warned the public against investing in unregistered investment schemes, including Silverkuun Investment Cooperative Society/Silverkuun Limited.
In a circular issued in Abuja, yesterday, the commission said its attention had been drawn to the activities of these entities, which falsely present themselves as investment advisers and fund managers in the Nigerian capital market.
“The attention of the Securities and Exchange Commission has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an Investment Adviser/Fund Manager.
“The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Limited is not registered to operate in any capacity in the Nigerian Capital Market.”
SEC advised the public to refrain from engaging with Silverkuun Investment Cooperative Society/Silverkuun Limited or its representatives in respect of any business in the Nigerian capital market.
“The Commission uses this medium to reiterate that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to financial risk including fraud and potential loss of investment.
“The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s portal before transacting with them,” the SEC added.
Dr. Emomotimi Agama, director-general of the SEC, recently warned that the Commission would not hesitate to shut down the operations of such unregistered entities while also ensuring that the promoters are made to face the full weight of the law.
Agama said, “we will shut down their operations and the promoters will be made to face the full weight of the law.
“In a major reform, ISA 2025 officially brings digital assets under the SEC’s regulatory purview, defining them as securities and mandating registration for all virtual asset service providers (VASPs) and digital asset exchanges. This development aims to close the regulatory vacuum that has allowed many Ponzi-style platforms to thrive under the guise of cryptocurrency and digital finance.”
Agama also emphasized the Commission’s education-focused strategy to combat fraud through podcasts, digital campaigns, and the introduction of capital market literacy in schools and universities, the SEC aims to equip Nigerians with the knowledge to detect and avoid dubious investments.
Africa’s cross-border payments market is on track to hit $1 trillion by 2035, according to a new report by venture capital firm Oui Capital. Titled “Africa’s Cross-Border Payment Landscape—a deep dive into the systems, players, and shifts shaping Africa’s cross-border payment flows,” the report states that the market is currently valued at $329 billion and growing at a compound annual growth rate of 12%.
It identifies Africa’s booming digital adoption, increasing intra-African trade, and a surge in mobile money usage as the key growth drivers.
Despite the impressive growth, the report highlights systemic inefficiencies.
“Legacy rails, double currency conversions, and fragmented regulations still siphon billions in hidden costs,” Oui Capital states, noting that the continent continues to have the highest global remittance costs, averaging 7–8%.
However, digital innovation is helping reshape the landscape. Mobile money is now a key channel, with 30% of Sub-Saharan remittances flowing through mobile wallets.
In 2022, Africa accounted for 66% of global mobile money transaction value, demonstrating the rapid formalisation of what was once a predominantly informal cash ecosystem.
Oui Capital sees significant investment potential in addressing these inefficiencies. “Infrastructure plays—interoperable API layers, decentralised FX liquidity pools, and PAPSS integrations—represent $10 billion-plus opportunities,” the report says.
The Pan-African Payment and Settlement System is one such initiative pushing for local currency settlements and reduced reliance on USD/EUR clearing, which presently adds around $5 billion in annual costs.
According to the report, cryptocurrencies and Stablecoins are emerging as promising alternatives, cutting remittance costs by up to 60% in markets with clear regulations.
“Fintech APIs are already pushing fees as low as 1.5–3%,” the report notes.
Still, the venture capital firm warns that challenges persist as only 55% of African jurisdictions allow full electronic KYC, limiting the scalability of fintech solutions.
The report urges founders to go beyond peer-to-peer transfers by embedding services like lending and insurance.
“Africa’s payments race is now a scale game. Those that solve for liquidity, compliance and cost will define the continent’s digital trade backbone over the next decade,” it concludes.
Chartered Institute of Bankers of Nigeria has expanded its Agency Banking Certification Programme through a tripartite collaboration between the Institute, FIC, and SANEF Limited.
This partnership according Prof. Pius Deji Olanrewaju, President/Chairman of Council the Chartered Institute of Bankers of Nigeria, CIBN, is timely and strategic, “as we aim to broaden the reach of the certification across Nigeria’s agent banking sector. With SANEF’s deep integration in the financial inclusion ecosystem and established relationships with leading super agents, we are confident that this collaboration will strengthen the quality and visibility of the programme.
“The goal is clear, to enhance professionalism among agent bankers, support the national financial inclusion strategy, and contribute to building trust and integrity within this growing segment of the financial services sector. This collaboration presents an excellent opportunity for further implementation of the competency framework for the banking industry in Nigeria”.
He noted that the collaboration among others is part of his LEGACY agenda which highlights the multifaceted role of financial institutions in shaping Nigeria’s economic future.
The letter C in the LEGACY agenda refers to Competence in the banking and Finance industry, which is a very crucial factor in the banking and finance sector. Competent individuals in this industry are equipped with the necessary knowledge and skills to effectively manage financial resources. Individuals with expertise in this field can contribute to the growth and stability of the economy.
Mrs. Uche Uzoebo, Managing Director/Chief Executive Officer, Shared Agency Network Expansion Facilities, SANEF, described the memorandum of Understanding, MoU, as a visionary partnership that seeks to expand Financial Inclusion through Agent banking training, Financial Literacy and knowledge impartation, an objective that forms a key pivot of what SANEF represents.
“Over the years, SANEF, in strong collaboration with our key stakeholders, Banks and Licenced Super-Agents/Mobile Money Operators and other Financial Service Providers, have continued to deepen the frontiers of Financial Inclusion and agent bank. Financial Literacy and training have remained a key part of this objective.
“This MOU ceremony is a fulfillment of a shared vision through the expansion of Agent Banking, Financial Literacy, capacity building, thought leadership, training and competency.
She further explained that the agreement provides a training structure with well-curated and knowledge filled training modules and materials that will deepen the knowledge and capacity in agent banking.
“It will go ahead to deepen and expand the knowledge and capacity of all participants that will take part in this training and we believe that with the quality and cooperation of all parties present, this very important objective of impartation of knowledge and thought leadership, grooming and training minds to be empowered and learned and contributing our quota to nation building and be a better place,” she added.
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