West Africa is driving the global adoption of mobile money, enhancing financial inclusion and economic growth. This growth is supported by increased competition among network operators and favorable regulations.
Growth dynamics of mobile money
The 2024 report from the Global System for Mobile Communications (GSMA), titled « State of the Sector : Mobile Money Services Worldwide », highlights the rapid expansion of mobile money. Globally, mobile transactions now reach 1.4 trillion USD annually, with approximately 1.75 billion accounts registered.
This evolution has financially included billions of people in just over a decade. The progress is particularly beneficial forsmall businesses and entrepreneurs, offering new economic opportunities and expanding access to financial services.
Sub-Saharan Africa accounts for nearly three-quarters of registered accounts worldwide, reflecting the highest adoption rate of this service. From 2013 to 2022, the mobile money sector contributed an increase of 150 billion USD to the region’s Gross Domestic Product (GDP), a 3.7 % rise. Thus, Sub-Saharan Africa stands as a key player in the global growth of mobile money.
Regional growth comparison
Overall, mobile money is expanding across all African regions, reflecting the increasing adoption of digital financial services. West Africa shows strong adoption with significant expansion in services and transactions. The Eastern region also exhibits robust growth, particularly in active users.
Central Africa experiences moderate increases in users and transactions, while Southern Africa records slower progress with limited adoption. Northern Africa shows visible expansion but remains more restricted compared to other regions.
Graph :
West Africa : Pillar of this progress
West Africa significantly contributes to the global expansion of the mobile money sector. The number of users in this region has doubled over a decade, particularly due to notable performances in Nigeria, Ghana, and Senegal. In 2023, West Africa housed over one-third of all newly created and active accounts worldwide. This maturing growth generates an additional 600 billion USD in GDP for countries offering at least one mobile money service.
Mobile money services in West Africa vary by country. International transfers remain limited in some nations, especially for users of the CFA franc. Francophone markets show growth dynamics distinct from those in Anglophone markets.
The West African mobile money ecosystem has unique features compared to East Africa, a pioneering region in this field on the continent. The mobile money markets in both sub-regions contribute similarly to GDP, with a 1.5 % share at the end of 2022. However, service adoption remains lower in West Africa, reaching 4.1 % compared to 5.9 % in the East during the same period.
Strong competition and service diversification
The dynamism of the West African mobile money market relies on intense competition among fixed and mobile network operators (MNOs) and numerous non-telecom players. This region is distinguished by the presence of various operators competing with traditional providers controlled by MNOs.
The West African Economic and Monetary Union (UEMOA) has 45 mobile money services, with 29 managed by banks in collaboration with technical providers. The remaining 15 are supplied by certified electronic payment providers. This diverse ecosystem promotes multiple uses of mobile money, ranging from merchant payments in Senegal to services specifically targeting the B2B segment.
Encouraging policies and regulations
Supportive regulations also foster the evolution of the mobile money ecosystem in West Africa, directly influencing the services and products offered by providers. The rapid growth of the region’s agent networks also stems from legislative changes in Nigeria that favor service provider development.
UEMOA allows both banks and non-banking entities to offer mobile money services. Meanwhile, the Central Bank of West African States (BCEAO) encourages collaborations between banks, microfinance institutions, MNOs, and FinTech companies. Several political reforms initiated in 2023, such as the reduction of mobile money taxes in Ghana, are expected to further strengthen financial inclusion in these markets.
