Mobile Banking in Africa to Hit U.S.$22 Billion By 2015

The International Telecommunications Union estimates mobile subscriptions across Africa more than tripled to 333 million since 2005. The World Bank said Sub-Saharan Africa averages just 163 bank accounts per 1,000 adults — compared to an average 635 in developing countries.

In 2006, Kenya had only 450 bank branches and 600 automatic teller machines, or less than two bank branches per 100,000 people. Read more here.

Taking the overall population as the potential target market, the penetration rate of mobile telephony in Uganda is now 35 percent, while in Liberia, it was around 31 percent in 2009. In Cameroon, where MTN and Orange have a duopoly, the penetration rate was around 38 percent in June 2010. In Kenya, mobile penetration is 50 percent, while in Rwanda, it was about 25 percent in early 2010.

South Africa’s Wizzit is another start-up. Its operations are guaranteed by the South African Bank of Athens. Managing Director Brian Richardson will not disclose the number of subscribers, but says the operation turns a profit.

“I do believe the bank-led model will win at the end of the day,” he says.

Mobile Banking in Africa to Hit U.S.$22 Billion By 2015