Financial inclusion: Africa, the mobile money leader 🌍

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Africa continues to dominate the mobile money sector with its digital financial services across the continent. Despite a decline in investments in 2023, payment solutions remain a driver of innovation.

10 years of digital financial services transformation 📈

The 2024 European Investment Bank (EIB) report highlights Africa’s significant progress in access to digital financial services. In just four years, the number of active fintech companies has surged from 450 in 2020 to 1,263 in January 2024.

According to the EIB, Africa stands out for its widespread adoption of mobile money accounts and the growing volume of transactions conducted via these platforms. These advances are strengthening financial inclusion and reshaping the continent’s economic landscape.

Driving african financial transactions 💳

Payment services dominate the fintech market in Africa, representing 33% of all digital financial products, followed by lending solutions (19%). In 2023, the value of mobile money services in Africa reached $912 billion, reflecting a growth of 9.6% compared to 2022.

With 74% of global transactions in volume and 66% in value, Sub-Saharan Africa remains the global leader in mobile money.

Decline in investments and sustained growth 📉➡️📈

Despite these advancements, investments in African fintechs dropped by 78% in 2023, falling from $2.4 billion in 2022 to just $526 million. This decline reflects a global trend driven by rising financing costs.

However, this decrease has not slowed the sector’s development. Payment solutions and online lending continue to attract the most investment, capturing 35% and 27% of fintech capital, respectively. The diversification of financial services, particularly in management technologies, is also progressing at a steady pace.

The future of digital financial services in Africa 🌟

The success of mobile money showcases Africa’s ability to leverage digital technologies. As a result, the continent is paving the way for greater financial inclusion and sustainable economic transformation.

Question to Readers :

In your opinion, what solutions could help attract more investments into African fintechs despite an uncertain global financial context? Let us know in the comments! 😊