The use of mobile money transactions has taken Africa by storm such that the use of this form this financial facility in 2014 was valued at $656m with researchers expecting it to double to $1.3bn. Africa has a couple of mobile money systems and these are Kenya’s M-Pesa and Zimbabwe’s Ecocash. Experts say that these financial systems are likely to mature beyond person-to-person transactions.
Many regional mobile companies are copying M-Pesa’s systems to enhance their profits.
An ICT analyst with Frost and Sullivan, Lehlohonolo Mokonela argued that regional mobile network operators are increasingly capitalizing on the growth of mobile money to increase revenue per subscriber and counter the increasing pressure on voice.
A report by this research firm says that there has been an increase in the implementation of mobile banking services in the African region as there is limited access of banks in many African countries.
The growth of mobile infrastructure and presence of cheap smart mobile devices also increase the use of mobile money services.
As such, sub-sharan African governments have been called upon to consider the role played by mobile money platforms developing financial system in the region.
The report further suggests that governments should, ‘create an enabling environment for MNSs to deliver mobile money services for the large unbanked and unbanked population.”