Africa’s biggest mobile money markets
VALUE ADDED SERVICES| July 13, 2012, 12:37 p.m.
A new Gallup study funded by the Bill & Melinda Gates Foundation has found that two-thirds of Kenyans who had sent money to family members or friends living in a different city or area in Kenya did so via a mobile phone, making them the most likely to transfer money this way across several sub-Saharan countries.
Uganda and Tanzania were second and third most likely (43% and 32% of remittance senders, respectively) to report that they had made a mobile phone-based transaction in the 30 days prior to the survey.
The study of 11 sub-Saharan African countries, "Payments and Money Transfer Behavior of Sub-Saharan Africans," took an in-depth look at sub-Saharan Africans' payment behaviors regarding domestic and international remittances, government and wage payments, utilities, and other bills.
In seven other sub-Saharan African countries surveyed, fewer than one in 20 senders of domestic remittances used mobile money transfer services. In Congo (Kinshasa) and Sierra Leone, for example, mobile phones were never used to make that kind of transaction. Respondents there sent cash or brought it in person. With the exception of Kenya, at least half of remittance senders in all countries surveyed used only these informal payment channels.
In more developed banking markets such as South Africa, Nigeria, and Botswana, bank transfers were a relatively popular way to send remittances domestically, with 33%, 29%, and 22% of senders, respectively, using this channel; however, rates of cash transactions were still high in these three countries.
Across the 11 sub-Saharan African countries surveyed, adults from rural areas and villages who sent domestic remittances were more likely to have sent this money via mobile phone transfer (28%) than those living in urban areas (13%). Urban residents were more likely to have used bank transfers (25%) than were rural residents (9%). A majority among both villagers and city dwellers still only sent domestic remittances in cash, either through someone else or in person.
The report also found that contrary to what is often believed, money in African countries is not necessarily mostly flowing from the cities to the rural areas or villages.
In fact, large city dwellers were only slightly more likely to have received domestic remittances than inhabitants of rural areas or villages. Another interesting finding is that large city dwellers were as likely to have received money exclusively in cash or in person as inhabitants of rural areas or villages. The report says this study seems to suggest that domestic remittances also often flow from city to city, instead of being mostly channeled from the large urban centers to rural areas.
Another interesting finding is that the typical story of men being senders and women being recipients of domestic remittances does not accurately reflect reality. In fact, the data reveals that the differences in sending as well as in receiving domestic remittances between both genders are minuscule. Thirty percent of women reported having received domestic remittances, compared to 28% of men. Men were only slightly more likely than women to having sent or brought money to family members or friends in the 30 days prior to the interview (21% vs. 18%).
MORE VALUE ADDED SERVICES NEWS
Uber Kenya, Sidian Bank launch Vehicle Solutions ProgrammeUber and Sidian Bank are partnering to give driver-partners and investors access to vehicle financing for their own Uber-based businesses. Read More
Ericsson announces Emergency Wallet to support humanitarian responseEricsson has committed to developing Ericsson Emergency Wallet, a mobile financial services solution, for deployment in the immediate aftermath of disaster or crises to support humanitarian organizations and affected populations. Read More
Hello Paisa clinches top African Fintech spot at Innotribe Start-up challengeLow cost international money transfer company Hello Paisa was named the number one Fintech Company in Africa during the SWIFT African Regional Conference in Mauritius this week. Read More
Ghanaian diaspora embrace MTN Mobile Money when sending home with WorldRemitMTN Mobile Money has become the fastest growing method of receiving WorldRemit international money transfers in Ghana. Read More
Ghana’s first mobile-based nano lending scheme launchedAirtel is partnering with Fidelity Bank and Tiaxa will provide instant access to Nano loans up to GHC 200 to Airtel customers who qualify for the service through the Airtel Money platform. Read More
Airtel, Flickswitch launches first business SIM management service in KenyaAirtel has partnered with Flickswitch International, a leading provider of self-service solutions for enterprises to launch an enterprise SIM management service in Kenya. Read More
Airtel, Facebook to launch Free Basic Services in NigeriaBharti Airtel Africa has announced that it has launched Free Basics in Nigeria in partnership with Facebook. Read More
Safaricom pays out Kshs.152m in Skiza Tunes royaltiesSafaricom Limited has released Kshs.152 million to Collective Management Organisations (CMOs) and Premium Rate Service Providers (PRSPs), for payment to artistes whose music is sold through the company’s music platform – Skiza Tunes. Read More
Opera Mini introduces native ad blocker for Android usersOpera Mini has announced the launch of its built-in ad blocking system operating on its browser for Android. Read More
SimbaPay announces single money transfer of up to $45,000 to AfricaSimbaPay says it is revolutionizing the remittance space through its official announcement of raising the single transaction limit to a whopping $45,000. This is substantially higher than the previous transaction limit of $3,000. Read More
FEATURED STORYGovernment should encourage youths in ICT early
Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.
BEST READ NEWS
IN DEPTHIBM Opens First Cloud Data Centre in South Africa
IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.
COMPANY NEWSResolving the data centre disconnect
The disconnect between virtualised applications and physical storage is costing businesses time and money.Separating the attack that matters from the noise
It has almost become the norm for a business to be compromised by a security attack. The emphasis today is thus more on how a business responds ...