Africa Dominates Global Mobile Payments with US$190 Billion Contribution to GDP – Report

Contributing US$190 billion to GDP, Africa’s mobile money ecosystem has evolved into a robust and mature digital payment infrastructure.

The State of the Industry Report on Mobile Money 2025 by GSMA confirms that Africa is an undisputed leader in digital payments, with the continent’s digital payments trends surpassing those of other regions in 2024.

While Africa’s performance last year stood out, insiders view it as just the beginning, with many pointing to significant underlying opportunities for further growth on the continent.

According to Reenu Verma, a fintech expert at Vodacom M-Pesa, “I’m not surprised at all. In fact, I thought we would have grown even more rapidly.”

“Now, partnerships with banks and fintechs will accelerate adoption even further,” Verma, speaking during a webinar of the report’s launch on April 8, 2024, explained.

The 2025 report marks a milestone for mobile payments, with the number of registered accounts surpassing 2 billion in 2024. Of these, Africa (excluding Mediterranean countries) accounted for 1.1 billion, representing 53% of global adoption.

“These milestones were achieved in less than two decades, with the second billion accounts added in just five years—twice as fast as the first. This accelerated growth reflects how mobile money systems have evolved into essential financial infrastructure, particularly in underserved and unbanked regions.”

The report also reveals that Africans are not simply holding accounts—they are actively transacting. The continent’s monthly active users are estimated at 283 million, more than half of the global total of 514 million.

In 2024 alone, US$1.1 trillion of the global US$1.68 trillion transacted through mobile money platforms was processed via African platforms.

What makes Africa’s success even more remarkable is the depth of its agent network. There are now 755 registered agents per 100,000 adults—double the ratio recorded in 2021. This infrastructure ensures that even rural and underserved populations can access digital financial services with ease.

The region’s dominance extends to transaction types as well. While person-to-person transfers remain the backbone, ecosystem transactions—merchant payments, bill settlements, and bulk disbursements—are growing faster.

In 2024, Africans paid over US$100 billion to merchants via mobile money, a 21% increase from the previous year. Additionally, US$34 billion was processed in international remittances into Africa—a sector where the continent leads globally.

The economic impact is equally striking. According to the GSMA report, mobile money has added US$190 billion to Sub-Saharan Africa’s GDP, a figure that has grown by US$40 billion in just one year.

In countries like Kenya, Uganda, and Tanzania, mobile money contributes between 5% and 8% of GDP—an integration level unmatched anywhere else in the world.

East Africa maintains its dominance, with Kenya’s mobile money penetration reaching 95% of adults.

While the report confirms East Africa’s leadership, it also highlights remarkable growth in newer markets.

Ethiopia’s mobile money sector has surged since the 2021 market liberalization, with Safaricom’s M-Pesa Ethiopia reaching 4.5 million customers by December 2023.

Ethiopia’s Telebirr has also leveraged government partnerships to onboard 32 million users since its 2021 launch.

West Africa is also closing the gap. Nigeria’s mobile money transactions grew by 20% year-on-year despite initial regulatory challenges, while Francophone Africa shows particular promise, with Côte d’Ivoire recording a 24% increase in active accounts.

Ghana’s mobile money interoperability project has become a regional model, processing over US$50 billion in transactions in 2023. In Senegal, mobile money accounts now exceed bank accounts, with Wave’s disruptive model achieving 90% market penetration in just three years.

Other emerging innovations across the continent, such as Mozambique’s mKesh allowing cross-border transactions with Tanzania, underscore Africa’s continued leadership.

South Africa’s recent regulatory changes seem to be unlocking mobile money growth in the country, arguably the continent’s most advanced economy.

According to Verma, policy reviews are essential because “innovation needs regulatory sandboxes.”

“For example, we’re working with the Central Bank of Mozambique to shape policies for new services,” noted the fintech lead at Vodacom M-Pesa during the webinar.

Ongoing policy reviews cover various areas, including taxation; for instance, the Government of Togo lowered the tax rate on mobile money transfers from 18% to 10%.

Despite the progress, challenges persist, particularly regarding gender inclusion and fraud prevention.

However, gender disparities are narrowing in some markets. The report highlights that once women open mobile money accounts, their usage rates nearly match those of men. In Kenya, for instance, 89% of female account holders use their wallets monthly, reflecting the accessibility and utility of these platforms.

Comparisons with other regions further reinforce Africa’s leadership. South Asia, the second-largest mobile money market, has less than half of Africa’s registered accounts. East Asia and the Pacific, while growing, still rely heavily on traditional banking systems.

The success story of Africa’s mobile money—driving the continent’s digital payments—is now regarded as a benchmark for innovation, product diversity, and scale.

The report notes that markets in Cambodia, Fiji, and the Philippines are beginning to mirror aspects of the African model, particularly in expanding product portfolios beyond basic wallets.

“However, the levels of trust, agent network density, and cultural embedding of mobile money in Africa remain unparalleled globally.”

Emerging opportunities for further growth in the continent’s digital payments are projected to be driven mainly by savings and insurance services, which are also expanding.

Credit offerings are another key area of growth in Africa, now available through 44% of mobile money providers. These offerings provide vital liquidity to small businesses and individuals.

“Micro-loans, nano-loans, and overdraft products will see explosive growth. In the DRC, we’ve barely scratched the surface with 6 million users—the potential is massive,” Verma said.

However, as Antonita Gomez from Unitel Angola pointed out, “regulation is our biggest hurdle.”

“There’s confusion between mobile money and banking systems—what mobile money is and who it serves. The central bank is trying, but the lack of clarity slows progress,” she said during the webinar.

“To grow revenue, we must move beyond cash-in/cash-out. Customers want international remittances, insurance, and marketplaces—but regulation lags. Feature phones dominate here, but regulators conflate mobile money’s use cases with digital banking security needs. This mismatch limits growth,” she added.