Ghana Ranks Second in Growth of Mobile Money Services in Africa: Insights from the 2023 Oxford Economics Africa Report

In the latest edition of the 2023 Oxford Economics Africa Report, titled “The Africa Risk-Reward Index,” Ghana emerges as a significant player, securing the second position in Africa for the growth of mobile money services. This noteworthy standing places Ghana just behind Côte d’Ivoire in the continent’s mobile money landscape.

The report highlights that the value of mobile money transactions in Ghana, along with Cote d’Ivoire and Senegal, surpasses an impressive 100% of Gross Domestic Product (GDP). This achievement underscores the substantial impact and adoption of mobile money services in these West African nations.

The findings gain particular significance considering Ghana’s recent implementation of an electronic levy on mobile money transactions. Despite facing strong opposition from segments of the population, the country’s strides in mobile financial services remain commendable.

Oxford Report

Key Insights from the Report

  1. Leading the Way in West Africa: The report emphasizes that West African countries, especially Senegal, Ghana, and Côte d’Ivoire, have spearheaded the adoption of mobile money services across the continent.
  2. Leapfrogging Traditional Financial Infrastructure: Mobile money services in Africa, and particularly in the mentioned West African nations, signify a notable leapfrogging of traditional financial infrastructure. The report highlights that mobile money transactions in South Africa represent less than 1% of GDP, whereas Senegal and Ghana exceed the 100% mark.
  3. Ghana’s Strong Rankings: Ghana secured the second position in terms of mobile money accounts per 1,000 adults, with Côte d’Ivoire claiming the top spot. Additionally, Ghana ranked second in terms of mobile money agents per 1,000, with Senegal leading in this category.
  4. Reverse Correlation: The report identifies a reverse correlation between a country’s financial sector development level and the adoption of mobile money services. This indicates a growing demand and preference for mobile-based alternatives, bypassing traditional financial infrastructure.

Statistical Snapshot (as of August 2023)

  • Active mobile money accounts: 21.6 million
  • Active mobile money agents: 556,000
  • Total Mobile Money transactions: 1.190 trillion cedis in the first eight months of 2023

The comprehensive analysis conducted by the 2023 Oxford Economics Africa’s Report not only sheds light on Ghana’s mobile money prowess but also delves into the advantages and drawbacks of polarization within individual African nations, African-led security interventions, and the strategic funding approaches employed by African countries for their future development.