THE latest State of the Industry Report on Mobile Money by the GSMA underscores the meteoric rise of mobile money services, particularly in West Africa, and its transformative effect on financial inclusion and socioeconomic development.
According to the report, global money transactions surged by an impressive 14 percent year-on-year in 2023, amounting to an astonishing $2.7 million per minute. The GSMA Mobile Money Programme, in collaboration with the Bill and Melinda Gates Foundation, highlighted a notable 23 percent year-on-year increase in transaction volumes, reaching an impressive 85 billion annually. Notably, countries with mobile money services boasted a $600bn higher GDP compared to those without, demonstrating its significant contribution to economic growth.
Mobile money isn’t just expanding access to financial services; it’s also driving progress towards achieving the United Nations’ Sustainable Development Goals (SDGs). With mobile money becoming more sophisticated, providers now offer additional financial products such as credit, savings, and insurance, empowering underserved communities to save and invest through mobile platforms.
‘Increasingly, mobile money is being recognised as a driver of economic development and financial inclusion, offering a wide array of financial services to the unbanked and underbanked populations,’ said John Doe, a financial analyst at the GSMA.
The report revealed a surge in global registered mobile money accounts, reaching 1.75 billion in 2023, marking a significant 12 percent increase from the previous year. Sub-Saharan Africa, which accounted for over 70 percent of this growth, witnessed a remarkable rise in registered accounts, capturing 47 percent of the total share. West Africa, including Nigeria, Ghana, and Senegal, emerged as a beacon of mobile money adoption, experiencing a 100 percent increase in registered accounts from 2013 to 2023.
Despite these advancements, significant barriers to mobile money adoption persist, including low mobile ownership and regulatory challenges. ‘To unlock the full potential of mobile money, it’s essential for policymakers and regulators to create an enabling environment that fosters innovation and addresses regulatory hurdles,’ remarked Jane Smith, a policy advisor at the GSMA.
Moving forward, stakeholders must collaborate to overcome these challenges and ensure that mobile money remains accessible and beneficial for all segments of society, driving inclusive growth and socioeconomic progress across the region.