By John Ngari, Director, Africa MNOs at Onafriq

The potential for mobile money and digital payments to drive financial inclusion is immense. We can see this potential being unlocked on the African continent as it accounts for 70% of the world’s $1 trillion mobile money value and registered a 12% growth in mobile money accounts to 1.75 billion in 2023.

John Ngari,

This is opening a number of new opportunities for economic growth and development as more robust and connected payment networks are breaking down geographical barriers, opening up access to new markets and enabling anyone to send and receive payments quickly and easily from and to anywhere in the world.

However, these significant benefits are largely being realised and felt in Africa’s larger, and key, markets such as Nigeria, South Africa, and of course Kenya- where mobile money was first launched and popularised on the continent. While these markets have reached greater levels of digital payments maturity, smaller and more underdeveloped markets are often passed over, leaving many still excluded from economic participation and financial freedom.

And yet, the truly transformative power of mobile money and digital payments can be most realised in these overlooked economies where the reliance on cash, a lack of traditional bank accounts due to limited infrastructure and access, and the substantial penetration of smartphones and increasing internet connectivity has created the ideal confluence of circumstances that will pave the way for a more inclusive and resilient financial future.

Realising the enabling power of digital payments

The biggest drivers of mobile money adoption in Africa is its accessibility and ease of use. Unlike traditional financial services, there’s largely no need for extensive paperwork, a credit and financial history, or a physical presence within a brick-and-mortar branch in order to gain access to these services.

This low barrier to entry, along with mobile money’s ability to enable economies beyond just transactions and empower both individuals and enterprises, makes it particularly impactful for underserved markets. Within these regions, mobile money and the digital payments ecosystem has the power to serve as catalysts for economic growth, poverty reduction, and enable marginalised communities with the financial freedom to manage their day-to-day lives, start or expand their businesses, and invest in their futures.

A concerted effort towards a single goal

It’s important that all levels of an economy work towards achieving the crucial objective of financial inclusion. Collaboration is a key component in creating and maintaining an environment that creates more opportunities for inclusive growth and ensures economic resilience.

Not only do governments play a pivotal role in developing and implementing the policies and regulations that foster a supportive framework for financial services, but investment from both the public and private sectors are essential to building the necessary digital payments infrastructure that will underpin financial inclusion on the continent. Meanwhile, fintech firms can continue to drive innovation in this space that will achieve the desired convenience, speed and accessibility within the payments space.

We can see this value already starting to be realised across smaller markets like Eswatini where the Central Bank established a FinTech unit to spearhead the development of digital payments in the country in 2018, in South Sudan where the introduction of mobile money in 2017 has enabled development organisations to distribute cash assistance securely, and Somalia which recently enabled digital payments to be made between the country’s banks, making payments easier.

And, in Ethiopia, non-banks were enabled to provide mobile money services in 2020 as mobile money services could lift 700 000 people out of poverty, add $5.3 billion to the country’s economy, increase tax revenue by $300 million, and essentially position the country to adapt to economic downturns according to the GSMA’s 2023 Mobile Money in Ethiopia report. Recognising this period as a key moment in the country’s transformation into a financially inclusive economic powerhouse, Onafriq has also strengthened its presence in Ethiopia through a number of partnerships with financial institutions, mobile network operators, and other key decision makers. This includes partnerships with Ethio telecom and M-PESA Safaricom to enhance and streamline remittance flows and address the shortage of forex while providing customers with much-needed funds.

It’s clear then that when all these elements work in harmony, they can break down barriers to financial access, enabling people and businesses to participate more fully in the economy, thus driving sustainable development and economic growth in these underserved regions. And, investing in these smaller, underserved markets – which represent a significant portion of the continent’s population – is simply integral to realising true financial inclusion across Africa.

When everyone is able to access financial services we can foster inclusive growth, stimulate local economies and open up access to new markets and opportunities, connecting the continent through sustainable economic development.

This week’s edition of Glo-sponsored CNN African Voices Playmakers will feature Ghanaian singer, songwriter and musical innovator, Wendy Asiamah Addo, popularly called Wendy Shay.

Shay will delight viewers with the story of her journey to the top of her career as well as  her impact in her non-profit social engagements on the 30-minute magazine programme.

Born on February 20, 1996, Shay is a former nurse and midwife. She  plays a unique music style, which is a  blend of Afrobeats, highlife, and hiplife genres. Her hit albums include  “Uber Driver” and “Africa Money.”

She has performed at several events including Miss Ghana 2018 Finals, RTP Awards Africa 2018, BF Suma Ghana Connect 18 concert. In December 2019, she also performed at Ghana’s Afronation Music Festival.

Shay is brand ambassador for the Youth Employment Agency (YEA) in Ghana,  and has won the Best New Artiste of the Year at the Ghana-Naija Showbiz Awards amongst others.

An interesting time awaits viewers on the programme which will be aired  at  8.30 a.m. on Saturday. The edition will be repeated the same Saturday  at 12.00 p.m., on Sunday at 4.30 a.m. and  7.00 p.m. More repeats come on Monday at 4.00 a.m., on Saturday next week  at 8.30 a.m.,  12.00 p.m., and  on Sunday at 4.30 a.m. and 7.00 p.m. and at 4.00 a.m. on Monday.

By Abiola Ibrahim; Account Executive – Infobip

The African small business landscape is brimming with potential. From active markets to innovative entrepreneurs, the continent represents a vibrant hub of economic activity. Yet, in this dynamic environment, standing out and reaching customers can be a challenge.

Abiola Ibrahim

This is where digital communication steps in as a powerful tool for unlocking growth. By harnessing digital communication, these enterprises can amplify their brand presence, engage with their target audience effectively, and drive sustainable development.

Embracing mobile technology and data analytics

Mobile technology has emerged as an important tool for enhancing communication efforts and connecting with target audiences across Africa. According to GSMA Intelligence, mobile connectivity is playing a significant role in driving socioeconomic progress in Sub-Saharan Africa. Businesses can capitalise on this trend by adopting mobile-based communication strategies to reach and engage with their customers. For example, leveraging SMS marketing campaigns or developing mobile apps tailored to local preferences can enhance customer engagement and drive business growth.

Harnessing the power of data analytics, businesses can optimise their strategies, refine their messaging, and drive meaningful interactions to stay ahead of the competition. By embracing mobile technology and data analytics, small businesses can create a strong foundation for their digital communication efforts.

Personalisation and customer-centric approach

In an era dominated by personalised experiences, small businesses must tailor their communication efforts to resonate with individual preferences. This is more than just reaching customers; it is about engaging them in a conversation tailored specifically to their needs and desires. This involves a multifaceted approach, integrating various elements such as video content, storytelling, SEO optimisation, and community building into their strategies. Through video content, businesses can visually showcase their products or services, providing a more immersive and engaging experience for their audience. Unlike the traditional marketing storytelling, often perceived as one-way communication with customers, businesses who wish to build deeper relationships with their customers need to create conversational experiences. These experiences enable personalised, two-way communication that goes beyond simply using customer’s first name. They humanise the brand, making each interaction feel tailored to the individual customer and demonstrating that the company understands their preferences, from product choices to preferred communication channels.

Strategic use of digital communication solutions

Some small businesses have attained success by being strategic with their digital communication activities. They collect and store data using Customer Data platforms and use flow building solutions to trigger event-based conversations with customers on their preferred channels. This approach enables businesses to automate communication towards their target audience, ensuring the delivery of relevant and personalised messaging. Such strategies have been adopted by different organisations across various sectors to encourage purchases by customers who have abandoned their virtual carts, automate customer loyalty reward programs, set up efficient account signup and verification processes, and send automated reminders to customers to take certain actions.

Establishing a strong brand presence and maximising limited resources

Establishing a strong brand presence is vital for small businesses aiming to differentiate themselves in the market. Focusing on elements such as production, place, people, promotion, and process, businesses can define their unique value proposition and resonate with their target audience. Engaging in local connectivity and community engagement further strengthens brand authenticity, fosters trust, and fuels organic growth.

Small businesses often operate with limited budgets and resources, making it essential to adopt a strategic approach to digital communication campaigns. By setting attainable goals, leveraging technology, and prioritising audience insights, businesses can optimise their investments and maximise returns. Embracing AI-powered tools for content creation, targeted advertising and data-driven decision-making, can help unlock the full potential of digital communication.

Future opportunities and innovation

Looking ahead, the future of digital communication for small businesses in Africa is filled with opportunities for innovation and growth. As AI continues to reshape the marketing landscape, businesses can harness its capabilities to drive personalised experiences, automate processes, and explore new avenues for engagement. By staying agile, adaptive, and forward-thinking, small businesses can position themselves as industry leaders and capitalise on emerging trends to drive sustainable growth and prosperity.

As small businesses continue to evolve and adapt to changing market dynamics, their ability to effectively communicate will be instrumental in redefining entrepreneurship in Africa, shaping a prosperous future for themselves and their communities. Understanding what clients want is more important than ever, as it helps build stronger connections and fosters customers loyalty. Effective communication that delivers the best results involves knowing the right time and place to engage with customers. These preferences are discovered by analysing customer data and setting up events that make the communication most relevant to them.

In summary, the growth journey begins with building a community, getting to know your customers by collecting and analysing data, sending relevant information at the right time, and creating conversational experiences rather than talking at your customers.