
Ilona Limonta-Volkova, Contributor
Jan. 13, 2025

The buzz around financial modernization in Africa is louder than ever. Ethiopia is preparing to re-open its stock exchange after decades of political and economic turmoil, and the world’s largest digital bank, Nubank, has invested $150 million in South African fintech Tyme to support its international expansion. I previously wrote about the mobile money boom on the African continent in 2020. Now, nearly four years later, it’s time to re-examine the trends shaping the financial landscape.
Mobile Money: A Catalyst for Financial Inclusion
Mobile money has continued to redefine Africa’s financial landscape, growing from a regional innovation to a cornerstone of economic activity. In 2023, the mobile money market reached $674.8 million. Projections indicate it will grow at a CAGR of 19.3%, reaching $3.45 billion by 2032. This growth is driven by increasing smartphone adoption, improved connectivity, and a young, tech-savvy population eager to embrace digital financial tools.

Nubank is one of many players capitalizing on growing fintech adoption in Africa (NurPhoto via Getty Images)
The adoption of mobile wallets for payments, savings, and transfers has surged, with over 70% of adults in sub-Saharan Africa relying on these platforms. Their convenience and accessibility effectively compensate for the limited reach of traditional banking infrastructure, making financial services available to millions. By 2025, nearly half of Africa’s population is expected to participate in e-commerce, a significant jump from just 13% in 2017. Mobile money platforms are seamlessly integrating with e-commerce, enabling secure, cashless transactions and further enhancing their utility.
Innovations Driving Mobile Money Growth
Technological advancements are playing a crucial role in the sector's evolution. Tokenization is improving security by replacing sensitive financial data with unique tokens, reducing the risk of fraud. Additionally, real-time payment systems in countries like Ghana and Nigeria have facilitated instant transactions, building trust and driving adoption. Regulatory developments across Africa are complementing these innovations, with governments implementing policies to foster digital finance, strengthen anti-money laundering measures, and encourage financial technology innovation.

African governments are increasingly drafting fintech friendly regulation (AFP via Getty Images)
Africa’s fintech ecosystem has experienced exponential growth, tripling in size from 450 active companies in 2020 to over 1,200 in 2024. Nigeria remains the continent’s leading fintech hub, hosting 28% of these startups and attracting significant investment. This ecosystem continues to expand, showcasing Africa's leadership in digital financial innovation.
Mobile Money’s Future Potential
A standout example of mobile money’s transformative power is Hormuud Telecom’s EVC Plus in Somalia. With 67% of Somalis using it as their primary payment system, EVC Plus has enabled financial inclusion through its free transaction model, particularly benefiting underserved communities. Such success stories illustrate the broader potential of mobile money across the continent.

Hormuud Telecom offers a fintech success story (AFP via Getty Images)
Looking ahead, the future of mobile money in Africa holds immense promise. Cross-border payments are emerging as a key area of development, enhancing interoperability to support regional trade. Financial products like credit and insurance are expanding, addressing the needs of underserved communities. Blockchain integration is also gaining traction, offering greater transparency and efficiency for financial systems.
Africa’s success in digital financial inclusion offers a valuable blueprint for other regions, including underserved communities in developed economies like the U.S., where similar challenges persist. As Africa continues to lead in this domain, the focus must evolve from rapid scaling to long-term sustainability. Ensuring that mobile money bridges financial gaps and creates lasting opportunities will be critical in cementing its role as a transformative force in the global financial landscape.
By Ilona Limonta-Volkova, Contributor
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