The number of Mobile Money accounts in Africa jumped from 562 million in 2020 to 856 million in 2023, reflecting a 52 percent growth, according to a report by the GSMA, titled "State of the Industry Report on Mobile Money." This report examines the global growth of Mobile Money services.

Active accounts, defined as those used within 30 days, also increased by 47 percent, from 161 million in 2020 to 237 million in 2023. 

In 2023, Africa led the world in Mobile Money transactions, with 62 billion transactions totaling $919 billion. This accounted for 65.6 percent of the $1.4 trillion that passed through Mobile Money accounts globally.

The surge in Mobile Money adoption can be attributed to several factors. According to the GSMA, the COVID-19 pandemic accelerated the shift toward digital services, providing a safe and convenient alternative for financial transactions.

In a 2022 report, "Digital Finance Platforms to Empower All," from the United Nations Development Programme (UNDP), telecom operators Vodafone Group, Vodacom Group, and Safaricom highlighted other factors behind the growth. 

Aiaze Mitha, a fintech and sustainability expert, emphasized the crucial role of mobile operators. With their large customer bases, these operators have built strong commercial networks, brand recognition, and marketing power.

Mitha also pointed out that necessity drives Mobile Money adoption. He explained that as people moved from rural areas to urban centers, they needed a way to send money to relatives in remote areas. Similarly, small businesses required efficient ways to receive payments from customers and pay suppliers.

Despite this growth, the Mobile Money sector faces several challenges. Some African governments have imposed taxes on Mobile Money transactions to boost local revenue. 

In countries like Tanzania and Ghana, where transaction taxes were in place between 2021 and 2023, many Mobile Money users reverted to cash. This shift reduced taxable transactions and ultimately lowered overall tax revenues.

The GSMA also noted that a lack of financial literacy remains a significant barrier to Mobile Money adoption among vulnerable consumers.

Addressing these challenges carries important economic implications. According to the "Digital Finance Platforms to Empower All" report, countries that successfully adopt Mobile Money see an average annual GDP per capita growth of 1 percent. 

Additionally, the "State of the Industry Report on Mobile Money 2024" indicates that a 10 percent increase in Mobile Money adoption could raise GDP by 0.4 percent to 1 percent.