In 2021 the global mobile value stood at 1 trillion dollars. The African continent accounted for about 70 percent of the statistics. The adoption of mobile money in Africa continues to rise with Global System for Mobile Communications(GSMA) figures highlighting an increase from 27.5 billion in 2020 to 36.7 billion in 2021.
Mobile Money Enables Growth of Business
The convenience of mobile money makes it convenient for African countries to transact business among themselves. Africa remains to be the biggest player in mobile money, benefiting both business-to-consumer and business-to-business enterprises. In East Africa for instance there are 296 million registered mobile money accounts. This accounted for $403.4 billion in the year 2021.
M‑Pesa — Mobile Money in Kenya
M‑Pesa is currently the most popular mobile money provider in Africa as well as the largest Fintech platform in the region. In Kenya, Tanzania, Mozambique, the Democratic Republic of Congo, Lesotho, Ghana, Egypt, Afghanistan, and South Africa, M‑Pesa serves an estimated 51 million customers.
Payment processing, airtime top-up, and a cost-effective means of conducting business are all included in the services offered. Kenya remains the largest market accounting for 30 million of the 51 million users. M‑Pesa has been vital for Kenyans with a huge percentage of the population using it for day-to-day transactions. The services have also reached other countries as demand for mobile money transfers increases.
Telebirr — Mobile Money in Ethiopia
On Oct. 6, Safaricom switched its mobile telecommunications network in Ethiopia’s capital, Addis Ababa. The Ethiopian government issued Safaricom a full-service license. The company’s mobile services have been availed in 11 cities with expansion plans to 14 more cities by 2023.
Ethiopia has a population of over 100 million people, which gives it a huge opportunity for mobile money transactions and development in the country. Ethiopians have already embraced the concept of mobile money, leading to almost half a billion dollars in transactions.
Mobile money in Ethiopia is available and is provided by state-owned Ethio Telecom. Through TeleBirr, 21 million subscribers have transacted $492 million. The introduction of Safaricom’s M‑Pesa will offer competition for the money service TeleBirr. The entrance of M‑Pesa in Ethiopia will lead to more growth of mobile money transfers.
Ethiopians in the diaspora can easily transact business in their country through M‑Pesa.