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Mobile Money Accounts Dominate Borrowing as Savings Rise Across Africa

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Mobile Money Accounts Dominate

Mobile money accounts dominate formal borrowing in Sub-Saharan Africa and have increased savings access, reshaping the region’s financial inclusion efforts

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Mobile money accounts dominate formal borrowing in Sub-Saharan Africa, with new World Bank data revealing their transformative role in expanding financial access, especially among rural and low-income populations.

Also read: MTN Group Announces Mobile Money Partnership With Flutterwave

According to the World Bank’s Global Findex Database 2025 report released on July 16, 2025, 23% of adults in the region saved money through mobile accounts in 2024.

This far outpaces the 9% savings average across other low- and middle-income countries and reflects a broader digital shift in financial behaviour across the continent.

The report notes that countries like Ghana, Kenya, Senegal, Uganda, and Zambia have become leaders in mobile financial inclusion, with around half of adults in each of these countries using mobile money platforms to save.

Mobile money account ownership in Sub-Saharan Africa rose from 27% in 2021 to 40% in 2024, indicating steady growth in financial participation.

The trend has also benefited telecom giants such as MTN Group, Orange, Vodacom, Airtel Africa, and Safaricom, whose mobile finance services have penetrated previously underbanked regions.

This shift has had measurable impact. Formal savings in Sub-Saharan Africa rose by 12 percentage points between 2021 and 2024, reaching 35%—the second-highest global rate after East Asia and the Pacific.

Overall, about 60% of adults now engage in saving activities, whether formally or informally.

However, while saving is on the rise, formal borrowing remains relatively low in the region. Just 12% of adults borrowed formally in 2024, half the global average for comparable economies.

Yet within this group, mobile money accounts dominate: 7% borrowed from mobile money providers, who collectively account for nearly 60% of all formal borrowing.

Mobile money’s rise is reshaping Africa’s financial landscape—expanding inclusion, unlocking savings, and creating new ways to borrow.

Kenya stands out as the most advanced in digital borrowing. There, 32% of adults took loans from mobile money services in 2024—making up 86% of the country’s formal borrowers.

Notably, a quarter of Kenyan borrowers relied exclusively on mobile platforms for credit access.

Still, digital payment adoption is uneven. While 80% of mobile money users made digital payments, only 20% paid merchants directly.

This points to a significant opportunity for growth in business-to-customer mobile payment integration.

The World Bank’s dataset, compiled from over 145,000 adults across 141 countries, highlights how digital connectivity and innovation are bridging financial gaps.

It attributes the rise in financial access to the expansion of mobile networks, widespread smartphone use, and user-friendly mobile finance applications.

“Mobile money’s rise is reshaping Africa’s financial landscape—expanding inclusion, unlocking savings, and creating new ways to borrow,” the report states, emphasising the role of digital tools in tackling long-standing economic exclusion.

Development economists view this as a foundation for improved productivity and resilience in the region.

By saving formally, individuals can better withstand economic shocks, invest in small enterprises, and support education and healthcare needs.

Yet challenges remain. Digital literacy, data costs, and regulatory concerns continue to limit adoption in some areas.

Experts argue that targeted public policies and further investment in digital infrastructure are needed to sustain and expand these gains.

Also read: A Merry & Mobile Season with the New Ecobank Mobile App

Despite these hurdles, the growth of mobile money in Africa signals a quiet revolution. Where brick-and-mortar banks have fallen short, mobile finance has stepped in to democratise access—one digital transaction at a time.

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Economy

FG Urges Investment in Youth, SMEs and Local Industries to Grow Economy

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Investment

Nigeria investment in youth and local industries is vital to job creation, says FG, urging public-private partnerships and regional industrialisation

The Federal Government has called for increased investment in youth development, small and medium-sized enterprises, technology and local industries to create jobs and strengthen Nigeria’s economic competitiveness.

Also read: Osun amotekun dismisses officer over gross misconduct

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The Minister of State for Foreign Affairs, Ambassador Sola Enikanolaiye, made the call during a panel discussion titled “From Trade to Value Chains: Building Regional Industries to Compete Globally” at the 32nd Nigerian Economic Summit, held under the sub-theme, “Invest Nigeria”.

In a statement issued on Tuesday and signed by his Special Assistant on Digital Media and Public Diplomacy, Raphael Oni, Enikanolaiye said Nigeria needed stronger partnerships between the public and private sectors to mobilise the capital required for sustainable economic growth.

He argued that the country must move beyond trading raw materials towards building industries that process local resources into finished products for domestic consumption and export.

According to the minister, investment from both domestic businesses and foreign sources would be necessary to expand industrial capacity, create employment opportunities and improve living standards.

“In advancing our country, we don’t talk enough to one another in terms of constructive conversation and dialogue. We believe that partnership which allows government to engage deeper and stronger with the private sector is critical. Government alone cannot alone raise the resources needed for shared prosperity,” he said.

Enikanolaiye added that domestic capital mobilisation was as important as attracting foreign investment.

He identified Nigeria’s youthful population as a major asset that could accelerate industrialisation if supported by investments in education, skills development, innovation and entrepreneurship.

“Our youth population is very critical – a vibrant population. We need to invest more in human capital, focusing on Small and Medium Scale Enterprises, technology, innovation and creativity. By so doing, we will be able to generate more employment for the youth and also raise more wealth and income,” he said.

On foreign policy, the minister said the administration had reordered its four-point 4D doctrine to place the welfare and prosperity of Nigerians at the centre of the country’s international engagements.

The framework focuses on Demography, Development, Democracy and Diaspora.

Enikanolaiye said democratic governance should produce tangible economic benefits for citizens rather than remain an end in itself.

“Democracy is good, but it is a means to an end, not an end in itself. Democracy must deliver on core priorities of economic development and economic prosperity to our people,” he said.

The minister also emphasised the importance of macroeconomic stability and reliable economic data in helping businesses assess investment opportunities and make long-term plans.

He said Nigeria had recorded improvements in macroeconomic stability and that inflation was coming down, although he did not provide supporting figures in the statement.

Enikanolaiye further called for reforms to make the Ministry of Foreign Affairs more responsive to Nigerians and strengthen its engagement with businesses.

He said cooperation between the government and private sector, alongside partnerships with neighbouring countries and other international markets, could help Nigeria expand its industrial base and improve its access to regional and global markets.

Also speaking at the summit, the President of the Economic Community of West African States Commission, General Birame Diop, called for greater emphasis on industrialisation to create jobs and strengthen regional trade.

His remarks were delivered by the ECOWAS Commissioner for Economic Affairs and Agriculture, Dehpue Yenpea Zuo.

Diop argued that trade agreements alone could not deliver widespread employment and economic growth without industries capable of processing raw materials and producing goods.

“Trade agreements do not create jobs; industries do,” he said.

He noted that intra-African trade accounted for about 15 per cent of the continent’s total trade, compared with more than 60 per cent in Europe and Asia.

He attributed the gap partly to the limited scale of regional industries.

According to Diop, the regional market, with more than 300 million consumers, provides an opportunity for West African manufacturers to expand production before competing across the continent under the African Continental Free Trade Area.

He outlined four priorities for advancing regional industrialisation: implementing existing trade agreements, including commitments on border management; developing value chains in sectors where West Africa has a competitive advantage; improving access to finance for businesses and producers; and measuring progress through jobs created and goods processed within the region.

Also read: Osun amotekun dismisses officer over gross misconduct

Diop said converting trade commitments into productive industries would be essential to expanding employment, increasing regional economic activity and strengthening West Africa’s competitiveness in global markets.

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Economy

Cash Outside Nigerian Banks Rises to N4.92tn

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Cash outside Nigerian banks rose to N4.92tn in September 2026 as Nigeria’s broad money supply increased to N146.6tn, CBN data show

Cash outside Nigerian banks rose to N4.92tn in September 2026, an increase of N48.73bn from the N4.87tn recorded in August, according to monetary data published by the Central Bank of Nigeria.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

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The latest figures also showed an expansion in Nigeria’s broad money supply, which increased to N146.6tn in September from N139.09tn in the previous month.

The growth represents an increase of N7.51tn within one month, reflecting a broader expansion in the amount of money circulating across the economy.

The CBN data further showed that narrow money, which consists of currency in circulation and highly liquid deposits, rose to N44.05tn in September from N43.11tn in August.

Cash held outside banks refers to physical currency kept by individuals and businesses rather than within the banking system.

Broad money, by contrast, covers a wider range of monetary assets, including cash, demand deposits, savings and time deposits, as well as foreign currency deposits.

Nigeria’s broad money supply increased by 18.3 per cent between January and September, rising from N123.95tn to N146.6tn, the data indicated.

The latest increase followed the CBN’s decision in September to reduce its benchmark interest rate by 350 basis points, bringing it down from 26.5 per cent to 23 per cent.

The reduction was reported as the largest cut in the benchmark rate since December 2006.

Despite the rate cut, the Monetary Policy Committee retained the Cash Reserve Requirement for commercial banks at 45 per cent and merchant banks at 16 per cent.

The committee also maintained the 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits.

The Cash Reserve Requirement determines the proportion of eligible deposits that banks must hold as reserves with the central bank.

It is one of the monetary policy tools used to influence banking-sector liquidity and credit conditions.

The rise in cash outside Nigerian banks formed part of the broader increase in money supply.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

However, the figures alone do not establish why households and businesses held more physical cash or how much of the increase was driven by spending, savings behaviour or other economic factors.

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Economy

Obasanjo: Policy is meaningless without entrepreneurs like Wale Tinubu

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Obasanjo

Olusegun Obasanjo says government policies require entrepreneurs like Wale Tinubu to translate economic plans into investment, industrial growth and jobs (more…)

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