The number of mobile subscribers and mobile network operators (MNOs) in Africa has increased over the last decade due to enhanced investment and regulation in the industry. According to a report by Informa Telecoms, Africa is on track to hit one billion mobile subscribers by the end of 2015. Mobile technology is a key catalyst towards the attainment of the Millennium Development Goals in Africa. A 2005 London Business School study found that for every additional 10 mobile phones per 100 people in a developing country, GDP rises by 0.5%.
Mobile money is perhaps a beaming example of how mobile technology can be leveraged to develop products and services that address Africa’s unique needs. It is estimated that 18 million people use M-Pesa in Kenya and that half of Kenya’s GDP moves through mobile money. Already, 80% of the world’s mobile money transactions are happening in East Africa, driven by Kenya, the epicentre of mobile innovation.
The financial services industry in Africa has benefited from advancements in mobile money with banks and insurance companies offering it as an alternative platform for undertaking transactions. In the insurance sector, mobile money has greatly facilitated growth in microinsurance, which involves the provision of insurance services to low-income earners. Microinsurance products are typically lowpremium products with low coverage limits, which seek to prevent the reversion into poverty of low-income earners...Read more