Sub-Saharan Africa’s mobile-money market could grow to $1.5bn by 2019 –BCG

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According to research published by The Boston Consulting Group (BCG), -the use of mobile financial services in sub- Saharan Africa to do such things as pay utility bills and sending money to relatives could produce an estimated $1.5 billion in fees for mobile-money providers by 2019.
Sub Saharan Africa is said to be adopting mobile financial services at a rate seen in few other places, presenting banks and mobile network operators (MNOs) with a set of strategic choices that will go a long way toward determining their success in the region.
The report noted that sub-Saharan Africans are looking for more-secure ways to borrow and save money and are open to other financial products delivered using mobile phones, including loans and insurance. Even though mobile financial services are rising all over the world, sub-Saharan Africa’s unique circumstances which is a combination of a mostly “unbanked” population and heavy mobile-phone penetration have turned the region into an early adopter of mobile banking and a test bed for the technology’s potential.
Eight of the ten countries that make the most use of mobile financial services are in Africa, and sub-Saharan Africa has the highest proportion of active accounts which is 43 per cent.
Again, with the population in sub-Saharan Africa growing and becoming wealthier, the number of people aged 15 or older with an individual annual income of $500 or more will rise to more than 460 million by 2019. This development is likely to be reinforced as governments in sub-Saharan Africa increasingly focus on their education, health, and security systems while enhancing the potential for long-term economic growth in their countries.

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