Ghana now the fastest growing mobile money market in Africa – Veep Bawumia

Vice President Dr Mahammadu Bawumia, has averred Ghana is now the fastest-growing mobile money market in Africa.

Ghana, currently also ranks as number one in Africa in terms of access to financial inclusion.

According to the IMARC Group, the Ghana mobile money market size reached $161.3 million in 2023.

Looking forward, the IMARC Group expects the market to reach $789.5 million by 2032, exhibiting a CAGR growth rate of 19.2% between 2024-2032.

On the Continent, the Africa mobile money market size reached $674.8 billion in 2023. Looking forward, the IMARC Group expects the market to reach $3.4 trillion by 2032, exhibiting a CAGR growth rate of 19.3% during 2024-2032.

As of January 2023, 59.7 percent of the Ghanaian population aged 15 years and older had a mobile money account in Ghana. This was a sharp rise from the previous year.

As of February 2024, the total value of mobile money transactions according to the Bank of Ghana (BoG) amounted to GHS 195bn.

Ghana as of February, had 66.9 million registered mobile money accounts in the country.

Speaking at the 3i Africa Summit on Tuesday, May 14, 2024, the Vice President noted Africa has witnessed rapid growth in mobile phone usage and the telecommunications sector, asserting the explosive growth of mobile phone usage in Africa exceeds a mere technological shift and stands as one of the foremost catalysts of driving the fintech revolution across the continent.

Currently, Africa is home to over 489 million mobile phone users, and projections suggest that this number could reach a staggering 700 million mobile phone users by 2030.

Speaking further at the Summit, the Vice President noted recent developments in fintech and mobile financial services have catalyzed rapid growth in online commerce.

“Recent statistics highlight this shift, projecting online sales in Africa to soar to $75 billion by 2025. Of this amount, an estimated $56 billion is anticipated to stem from consumer spending as digital payment platforms gain traction across developing economies.

“This is a substantial leap from the $8 billion consumer spending recorded in 2013. The evolving consumer purchasing habits in Africa, increasingly influenced by fintech innovations, are emblematic of the continent’s dynamic economic transformation,” he posited.

“The fintech sector’s role in facilitating digital payments and e-commerce growth spotlights this significance as an impetus to economic development and financial inclusion across Africa,” he added.

The Vice President further noted that Ghana and Rwanda, have emerged as front runners in creating conducive environments for fintech start-ups through the introduction of regulatory sandboxes.

“This approach allows start-ups to experiment and iterate their offerings in real-world settings without the fear of immediate regulatory consequences. It provides regulators with valuable insights into emerging technologies and business models, enabling them to develop informed and effective regulations.

“For fintech start-ups, sandboxes offer a unique opportunity to validate their ideas, refine their offerings and demonstrate their value proposition to potential investors and customers.

“By participating in a sandbox, start-ups can gain valuable feedback from regulators, identify potential compliance issues early on, and tailor their products and services to meet regulatory requirements. This not only helps start-ups navigate the complexities of the regulatory landscape more effectively, but also instills confidence among investors, paving the way for increased investment in the sector. By fostering responsible innovation, these proactive regulatory approaches are shaping a promising future for fintech in Africa,” the Vice President remarked.

Source: Norvanreports