Mobile money in sub-Saharan Africa: Innovation and actors’ strategies

Abstract

The concept of “mobile money” triggers a diverse range of initiatives, involves various actors, and prompts numerous inquiries. This article explores how mobile money serves as an innovative mobile telephony service in Africa. It delves into the actors involved in this emerging mobile money system. The article draws on existing literature on innovation and introduces a methodology to evaluate the innovativeness of mobile money in sub-Saharan African countries. By combining insights from innovation and strategy theories, the scope of analysis spans from 2007, coinciding with the launch of M-Pesa, to 2023, with a specific focus on the West African Economic and Monetary Union (WAEMU) zone. This study asserts that Mobile Money qualifies as an African innovation, despite the apparent dominance of multinationals, particularly telecom operators, who engage in collaborative efforts with banking institutions and employ strategic tactics to secure advantageous positions in this promising new market. Looking ahead, the study sheds light on the potential risks linked to the incorporation of AI (such as recognition and geolocation) in mobile money transactions, along with the associated risk of financial exclusion. Additionally, it prompts further research into the geopolitical aspects surrounding mobile money and the complexities of achieving interoperability.