This archive report was first published on 2 October 2019.
On October 2, 2019, the International Monetary Fund released its Financial Access Survey (FAS), highlighting the growing use of mobile money in Sub-Saharan Africa.
The survey, which measures and monitors financial inclusion, found that mobile money has made significant strides in increasing access to financial services, particularly in regions with a large user base.
One notable example is M-Shwari, a savings and credit facility launched by the Commercial Bank of Africa and Safaricom in Kenya. This service allows users to access financial services entirely through M-Pesa, a mobile money platform with over 30 million users in 10 countries.
East Africa has been at the forefront of this mobile money revolution, with Kenya's M-Pesa launched in March 2007. The service has driven efficiency and safety for users, providing a relatively safe and affordable store of value and means of funds transfer.
Government support has also played a crucial role in promoting mobile money adoption. In Kenya, for instance, the government has digitized payments for government services, with over 90% of transactions made using the platform.
However, the IMF recommends strengthening consumer protection and regulatory frameworks to maintain financial stability. In Kenya, the government has already implemented regulations requiring formal authorization of new service providers.
As mobile money continues to grow, it is essential to address concerns around consumer protection and regulatory frameworks to ensure the long-term sustainability of this financial inclusion initiative.
