Mobile Money: Uganda, Ghana and Tanzania Presented as the Next High Growth Relays

In a research note published on the evolution of mobile money in the world, banking group Citi Group presents Ghana, Tanzania and Uganda, as the next strong growth relays in the sector. Together with Kenya, these countries are among the world’s top 10 in the penetration rate of this payment system in the population (40% to 70%).

However, the still large volume of cash payments and the low competition of other payment solutions, open the door to a remarkable evolution of mobile money in these countries. This is no longer the case in countries like Kenya, where penetration and usage have reached such a high level that growth prospects are modest.

Other countries such as Nigeria and Egypt could also be an interesting market for mobile payment solutions. But for analysts at Citi Group, these two economies are puzzles for investors in the field.

In Nigeria, for example, many challenges hinder the smooth running of this business. There is the obligation to work in partnership with a commercial bank, which produces a constraint effect on margins, the complexity of the mobile money licensing process and a low level of interoperability between the different parties. telecommunication companies. In the case of Egypt, in addition to the obligation to work with a bank, the limitation of transaction volumes by mobile, is a brake.

This analysis takes a fresh look at a sector, where the narrative of a myriad of opportunities often seems to disconnect from the speficity of certain markets. With today 320 million active subscribers to Mobile Money, Africa will have to wait to move to the next stage of development of this service. 

For some experts, efforts will have to be made, in terms of regulation in particular, so that the case of Kenya can replicate itself completely, and that one can reach the level of generalization that one knows him in China, where 500 million people on a daily basis, use Mobile Money in almost all of their different financial transactions.

Source: Agence Ecofin