Analysis of the Mobile Money Market in Sub-Saharan Africa—Selected Countries
Mobile money is expected to transform the financial services landscape. Mobile network operators (MNOs) are taking advantage of the growing popularity of mobile money to boost their average revenue per user (ARPU) in a bid to counter the increasing pressure on voice revenues.
Moreover, mobile money services have also become central to MNOs’ service offerings as part of their strategy to increase the mobile subscriber base. At least % of the MNOs in the countries analysed were found to either be offering or planning to offer mobile money services.
These services have come to make a growing contribution to MNOs’ service revenues; M-Pesa contributes over % to the service revenues of Safaricom and Vodacom Tanzania.
Having a robust network of agents is critical to driving the number of new mobile money connections because it helps create awareness and trust in the brand, as seen by the success of Safaricom Kenya, Vodacom Tanzania, and Econet Zimbabwe.
Just as important is the creation of partnerships with financial institutions, such as retail banks, in order to boost the agent footprint. A number of MNOs, including MTN, have adopted this strategy, particularly to enable cash-out transactions at bank ATMs and through Western Union agents.
In addition, strategic partnerships between the operators themselves, in-country and across borders, are growing in number.
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