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.
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.
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.
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.