Africa’s biggest mobile money markets

VALUE ADDED SERVICES

|
Image: By BiztechAfrica
Africa’s biggest mobile money markets

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%).



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE VALUE ADDED SERVICES NEWS

Terragon Group to unveil African-focused Mobile Advertising Technology at MWC

Nigeria-based Terragon Group is set to unveil its dynamic data monetisation and advertising platform, described as a first for mobile in developing markets, at MWC. Read More

MTN demonstrates the benefits of its video on demand offering

MTN showcased the benefits of FrontRow when it streamed high bandwidth video content onto multiple mobile devices using its video on demand (VOD) offering. Read More

Vodacom, Tigo agree on mobile money interoperability

Millions of M-Pesa and Tigo Pesa customers in Tanzania will soon be able to send and receive money directly into each other’s wallets. This follows the recent signing of a mobile money interoperability agreement between Tigo and Vodacom. Read More

Airtel Ghana launches DOTGO SMS Web browsing service

Airtel Ghana has deployed DOTGO’s SMS-based Internet service, which enables any mobile phone to be Internet-accessible without data or Wi-Fi.  Read More

MoneyGram reaches 25,000 locations across Africa

MoneyGram has announced an agreement with Safaricom that enables consumers in over 90 countries outside Kenya to send funds directly to nearly 20 million customers of M-PESA. Read More

TrustPay defines new space in cashless payment, commerce

TrustPay has officially launched a new range of innovative m/e Commerce merchant solutions it says are set to accelerate economic growth in developing markets. Read More

Econet launches Dial a Doc

Econet Wireless has launched a new service that will allow subscribers to access health advice 24/7 via a mobile phone.  Read More

Multi-bank mobile money goes live in Ethiopia

The new interoperable HelloCash mobile money platform has gone live in Ethiopia, aiming to provide financial services to all Ethiopians. Read More

Mobile app makes work easier for health workers

The iAfya mobile health information app is gaining momentum in Kenya, as health workers increasingly use it to learn and to educate communities. Read More

Orange, Ecobank partner on money transfer service

Orange and pan-African banking group Ecobank have rolled out a service that will enable Orange Money subscribers who also have bank accounts with Ecobank to transfer money between their respective accounts.  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Malawi Govt denies clinging to ‘Cashgate’ softwareMalawi Govt denies clinging to ‘Cashgate’ software

The Malawi Government will not exclude the software brand that has been in use for the country’s Integrated Financial Management System (IFMIS), but it has rejected reports implying that it is ‘clinging’ to the old system.

IN DEPTH

Kenya’s digital TV battle hots up Kenya’s digital TV battle hots up

Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.

COMPANY NEWS

MTN demonstrates the benefits of its video on demand offering

MTN showcased the benefits of FrontRow when it streamed high bandwidth video content onto multiple mobile devices using its video on demand (VOD) offering.

VMware appoints Bask Iyer as chief information officer

VMware has announced the appointment of Bask Iyer to the role of senior vice president and chief information officer (CIO) of VMware.