Mobile money is a fast growing phenomenon in Africa and it has helped in increasing access to financial services among the residents of the African continent. Mobile money has the potential of boosting economic growth and creating job opportunities for the citizens in these nations.
According to a recent report brought forth by Moody, the banking sector has grown exponentially in east and western Africa because of the introduction of mobile money. The agency indicates that sub Saharan Africa is experiencing an increase in account opening and this has been fuelled by the introduction of mobile money transfer in the region. The report indicates that a mobile money transfer has boosted credit rating of the region as well as increasing financial inclusivity in sub Saharan Africa. An increase in formal financial services has a potential benefit in boosting economic growth in the region by facilitating productivity, investments and the growth of small and medium enterprises.
By the end of the year 2014, 12% of the adult population in the region had a mobile account when compared to 2% across the globe. Mobile money has the highest use in Kenya and other countries such as Tanzania, Rwanda, and Uganda. The use of this platform in these countries including Ghana is widely beneficial in payment of public utilities and other services. Mobile banking has helped Ghanaians to experience banking in a new level. Money transfer is easy and customers can transact at the comfort of their homes. The platform presents one of the major benefits to the populace in the region. The money transfer will contribute to the domestic demand and economic growth in the region.
The macroeconomic environment in these countries will improve gradually once the money transfer service is in full effect across nations in Africa. The mobile banking allows the banks to target new customers with minimal transaction and overhead costs without the need to open new branches in these areas.