The mobile money industry has transformed financial services in Africa, granting millions access to financial inclusion and bridging the gap for the unbanked population.
- The mobile money industry has transformed financial services in Africa
- Sub-Saharan Africa accounted for a significant portion of global mobile money transactions, with USD 912 billion
- Four African countries emerged at the top 10 global rankings in the Mobile Money Regulatory Index
As the mobile money sector continues to expand, it becomes increasingly critical to establish a robust regulatory framework that ensures stability, security, and the integrity of mobile money services.
In 2023, approximately 1.75 billion mobile money accounts processed transactions exceeding USD 1.4 trillion globally.
Sub-Saharan Africa (SSA) accounted for a significant portion of this value, with $912 billion in transactions.
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Within SSA, West Africa contributed $347 billion, while East Africa, the region’s largest mobile money market, recorded $488 billion in transaction value.
Between 2013 and 2022, mobile money boosted GDP in Sub-Saharan Africa by over $150 billion, equivalent to a 3.7% increase, according to GSMA.
According to the GSMA Mobile Money Regulatory Index 2024, most mobile money markets, particularly in Africa, have adopted a laissez-faire approach to pricing, allowing market forces to determine costs.
Only a few countries have introduced price controls, reflecting a delicate balance between fostering innovation and ensuring affordability in the industry.
Regulations in mobile money operations
Regulations can require mobile money operators (MMPs) to implement robust security measures, such as encryption and two-factor authentication, to protect customer accounts from unauthorized access.
Additionally, regulatory frameworks can include Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT) provisions, along with Know Your Customer (KYC) requirements, to ensure operators identify their customers and assess risks before offering services.
Globally, an estimated 850 million adults lack official identification, which poses a significant barrier to financial inclusion.
This lack of identification makes customer onboarding costly for MMPs and inconvenient for users, particularly those with low incomes.
The updated Mobile Money Regulatory Index by GSMA evaluates 90 countries based on how well their regulatory frameworks facilitate mobile money adoption.
The countries are assessed across five dimensions: Consumer Protection, Authorization, Integrity, Oversight of Operations, and Organization & Governance, along with Policy Enablement.
African countries have emerged at the top of the rankings, demonstrating high levels of enhanced regulation in the industry.
The table below highlights the top 10 African countries with the most effective mobile money regulations in 2024.
| Rank | Country | Score |
|---|---|---|
| 1 | Ghana | 95.06 |
| 2 | Malawi | 93.88 |
| 3 | Lesotho | 92.58 |
| 4 | Uganda | 88.33 |
| 5 | Tanzania | 87.16 |
| 6 | Mozambique | 86.91 |
| 7 | Morocco | 86.75 |
| 8 | Ethiopia | 86.56 |
| 9 | Madagascar | 86.29 |
| 10 | Nigeria | 85.34 |
African countries are making remarkable progress in mobile money regulation, with an impressive showing in the top 10 global rankings. Sub-Saharan Africa is at the forefront, boasting four countries in the top 10.
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Ghana leads the pack, ranking 1st globally with a score of 95.06, demonstrating exceptional performance in mobile money regulation.
Rwanda closely follows, ranking 2nd globally with a score of 95, showcasing its robust regulatory framework for mobile money services.
Malawi ranks 4th globally with a score of 93.88, highlighting its commitment to creating a conducive environment for mobile money services.
Lesotho rounds out the top 10, ranking 7th globally with a score of 92.58, demonstrating its progress in mobile money regulation.
Other regions also feature prominently in the rankings.
The Middle East and North Africa region is represented by Qatar (3rd) and Iraq (8th), while Latin America and the Caribbean have three countries in the top 10: El Salvador (5th), Mexico (9th), and Brazil (10th).
