When we help multinationals enter East Africa, there is invariably a discussion around mobile money. While those of us that live here and use it may take it for granted, those unfamiliar with it are often shocked to find out how ubiquitous it is, the wide range of use cases, and how important it is for daily life.
While a lot has been published on mobile money, we have tried to put together a quick primer on what it is, how it is used, how widespread it is, and highlight a few mobile money enabled businesses. While access to traditional financial services is still a challenge across much of Africa, with increasing mobile penetration rates and an ever expanding mobile money ecosystem, we expect to see transaction volume and value figures continue to climb. This should be especially apparent with the unbanked population, who can access an ever growing pool of traditional financial services through the mobile money.
Every new market entrant needs to understand the mobile money ecosystem. Whether it is used to digitize payment for goods or accessing financial services, mobile money is a key facilitator of businesses across the continent.