The mo­bile money mar­ket in Sub-Sa­ha­ran Africa

Finweek English Edition - - IN BRIEF -

The use of mo­bile fi­nan­cial ser­vices in Sub-Sa­ha­ran Africa (SSA) (used for things such as pay­ing bills and send­ing money to rel­a­tives) could pro­duce an es­ti­mated $1.5bn (R17.3bn) in fees for mo­bile-money providers by 2019, ac­cord­ing to re­search by the Bos­ton Con­sult­ing Group (BCG).

The unique cir­cum­stances in SSA − high lev­els of mo­bile-phone pen­e­tra­tion in a largely un­banked pop­u­la­tion − have turned the re­gion into an early adopter of mo­bile bank­ing and a test bed for the tech­nol­ogy’s po­ten­tial, BCG said.

Eight of the 10 coun­tries around the world that make the most use of mo­bile fi­nan­cial ser­vices are in Africa, and SSA has the high­est pro­por­tion of ac­tive ac­counts (43%).

By 2019, there will be 400m unique mo­bile phone sub­scribers and al­most 150m tra­di­tion­ally banked Sub-Sa­ha­ran Africans, it said. This leaves about 250m peo­ple over the age of 15 with in­comes of $500 or more but no tra­di­tional bank ac­counts, giv­ing a sense of the po­ten­tial mar­ket for mo­bile fi­nan­cial ser­vices.

Su­dan−52%

So­ma­lia − 34%

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