As defined by the World Bank, financial inclusion is the enabling of individuals and businesses to access useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit, and insurance – delivered responsibly and sustainably.
In Sub-Saharan Africa, mobile money is one of the biggest drivers of financial inclusion, particularly for women. It has achieved this feat by enabling simple account opening which then facilitates mobile payments, savings, and borrowing. In 2020, mobile money transactions in Africa were valued at $490bn.
In 2021, this figure increased significantly to over $700bn, accounting for 70% of mobile money transactions worldwide. In 2022, the value of mobile money transactions in Sub-Saharan Africa alone was $832bn, making the region far and away its biggest adopter globally.
Despite these achievements, there are still hurdles to be overcome to ensure that more people are financially included. While the percentage of adult Nigerians considered financially included — including those with bank accounts, insurance, and mobile money — rose from 56% in 2020 to 64% in 2023, it still falls short of the 95% target set by the Central Bank of Nigeria. It is estimated that only about 52% of Nigerians own a bank account.
According to the 2021 World Bank Global Findex Report, “one-third of the mobile money account holders in Sub-Saharan Africa say they could not use their mobile money account without help from a family member or an agent.” It also disclosed that women are “five percentage points more likely than men to need help using their mobile money account.” The report highlighted other significant barriers, including financial illiteracy, poor product design which denies accessibility, and unexpected transaction fees.
Leading the Charge
In recent years, there have been some positives with African women in tech leading the charge to drive financial inclusion in Africa by creating solutions. Odunayo Eweniyi is the Chief Operating Officer (COO) and Co-founder of the popular online savings platform in Nigeria-, Piggyvest,. Piggyvest has made huge strides since it launched eight years ago. The platform boasts nearly five million users in Nigeria. Between 2016 and 2023, it paid ₦1.1 trillion to its customers. Last year, the company released a savings report that shed insights into the spending habits of Nigerians.
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