MNOs in Africa have undergone a notable transition in the past two decades. Today, they are not merely connectivity providers but are critical enablers of financial inclusion, offering services that go far beyond mobile wallets to include microcredit, insurance, and cross-border payments.

The impact of this transformation is most visible in Sub-Saharan Africa, the global hub of mobile money activity. The region now accounts for more than 1.1 billion registered mobile money accounts—over two-thirds of the global total as of 2024.  This is double the number recorded just four years earlier. Mobile money has matured from a niche solution into a mainstream financial tool, especially in areas where formal banking infrastructure remains limited or inaccessible.

Telco-led platforms are at the core of this growth. Mobile money services have become major revenue generators for telecom parent companies, no longer positioned as add-ons but as strategic verticals. In this #TechTalkThursday article, we will explore how telcos are moving decisively beyond airtime to lead Africa’s financial transformation, examining the structure, strategy, and impact of their mobile money services across the continent. 

From Airtime to Ecosystems: The Evolution of Telco-Led Mobile Money

Africa’s mobile money transformation began in 2007 with the launch of M‑Pesa by Safaricom in Kenya. Originally intended to support microloan repayments, the service quickly evolved into a foundational financial tool. Its early success drew on pre-existing airtime distribution networks, customer trust in mobile operators, and broad geographic coverage—especially in areas where formal banking was absent.

Before mobile wallets, airtime itself functioned as an informal form of value transfer. M‑Pesa formalised this behaviour by converting airtime sellers into mobile money agents—trusted intermediaries who enabled deposits and withdrawals. By 2010, Kenya had more mobile money accounts than traditional bank accounts, and similar models soon took hold in Tanzania, Uganda, and beyond.

Today, telco-led mobile money is deeply entrenched across Africa. In 2024, East Africa alone recorded 459 million registered accounts and 149 million active users, processing $649 billion in transactions. Safaricom’s M‑Pesa alone accounts for over 42 percent of its parent company’s total revenue. Agent networks have grown significantly, with 28 million registered agents across Africa—10 million of whom are active monthly—doubling agent density since 2021. The sector’s contribution to Sub-Saharan Africa’s GDP rose to $190 billion in 2023, with several countries including Kenya, Rwanda, Uganda, and Tanzania seeing mobile money contribute more than 5 percent of national GDP.

This early model of value transfer has now expanded into a full-service ecosystem. By mid-2024, 44 percent of mobile money providers offered credit, often in partnership with banks or fintechs. Airtel Money in Uganda launched the country’s first mobile credit scoring system with gnuGrid. MTN MoMo in South Africa introduced Qwikloan through a partnership with Jumo and became the first non-bank platform to process real-time interbank payments via PayShap. Safaricom’s M‑Shwari and Fuliza services continue to lead in savings and microcredit, reinforcing the platform’s financial relevance.

Savings products, offered by 34 percent of providers, are also gaining momentum, particularly in Nigeria and Ethiopia, where user uptake increased by over 20 percentage points. Though still limited, insurance services are beginning to scale. In 2024, Safaricom acquired a licence to distribute insurance through M‑Pesa in Kenya. Vodacom’s M‑Pesa in Mozambique began offering motor insurance, while MTN-backed aYo continued expanding microinsurance across multiple countries.

New use cases continue to emerge. Afrimoney introduced mobile-linked Visa cards in Sierra Leone. Telecel Cash enabled app payments on Google Play in Ghana. MTN MoMo Liberia enabled international remittances across West and East Africa, and Safaricom Ethiopia’s partnership with Dahabshiil now allows the Ethiopian diaspora to send funds directly to M‑Pesa wallets.

Mobile money platforms have matured well beyond wallets. They now form the infrastructure of digital financial life in many African countries, led primarily by telcos that recognised early on the power of distribution, local trust, and mobile access. 

“I think the other thing we do at MTN is drive financial inclusion, because we’re saying: this digital infrastructure and the services built on it should enable more and more Africans to become part of a functioning, inclusive economy. Imagine a woman sitting in Kumasi, Ghana, making hair products. On that phone, she holds a digital wallet, she has a website, and she can run basic e-commerce.”

– Ralph Mupita, President and CEO, MTN Group 

Strategic Shifts: Infrastructure, Licensing & Fintech Spin-offs

Telcos across Africa are transforming mobile money from integrated telecom services into independent, fintech-centric platforms. This shift is driven by infrastructure evolution, regulatory reform, and a goal to attract dedicated capital and foster innovation.

One of the most notable developments is MTN Uganda’s shareholder-approved spin-off of its mobile money business, now formally separating MTN Mobile Money (MoMo) from its telecom operations. This move aligns with Uganda’s 2020 National Payment Systems Act, which requires mobile money services to operate as distinct legal entities. Airtel Africa has already completed a similar separation: Airtel Money Kenya was licensed independently as a Payment Service Provider in October 2022 and is on track for a planned IPO in early 2026. 

Meanwhile, telcos are investing heavily in API platforms and merchant integration infrastructures to accelerate ecosystem expansion. These strategic shifts grant telco-fintech operations greater regulatory clarity, agility, and investor appeal. Operating as autonomous entities enables them to pursue focused product innovation—such as virtual cards, lending APIs, ecommerce services—and seek equity investments without impacting core telecom operations. 

And in an upcoming TechAfrica News Podcast episode with Dr. Peter Ndegwa, the CEO of Safaricom, he highlights this momentum:

“We have really accelerated the interaction between M-Pesa and opened it up as an open ecosystem with banks, using APIs. Now, about a third of the transactions on M-Pesa come through APIs, and we have a hundred thousand developers—who are not Safaricom employees—actively integrating businesses into the M-Pesa ecosystem.”

– Dr. Peter Ndegwa, CEO, Safaricom 

Ultimately, separating fintech platforms from telecom services positions African mobile money providers for sustainable growth, regulatory compliance, and scalable financial inclusion. 

“M-Pesa is a much more open ecosystem. We’ve launched the super app. It’s about five million customers who are using the super app every day, but those need a 4G device. So, when you ask me about the next phase, M-Pesa has been a very strong platform on the payment side, and that payment is still growing but we need to go beyond payment. We’ve gone into credit—individual credit. We’ve launched credit for business, small businesses in particular. We work with financial institutions to offer credit, and now we’ve started to move into wealth and savings. We are saying: we’ve sorted out financial inclusion through everyone accessing M-Pesa. Let’s now deal with financial health. And now, we’ve also launched insurance—starting with devices—and we will expand, because we have a huge distribution infrastructure” 

– Dr. Peter Ndegwa, CEO, Safaricom 

This super app trajectory is not unique to M-Pesa. Vodacom also tapped into the super app space through VodaPay, its all-in-one digital platform launched in South Africa and currently being scaled across its African markets. Through platforms like VodaPay, Vodacom is addressing this gap by providing accessible financial services, from savings and loans to insurance.

“The true power of fintech lies in its ability to democratise financial services. It’s not just about competing—it’s about creating opportunities for small businesses and individuals who have been excluded from traditional banking systems.”

– Sitho Mdlalose, CEO, Vodacom South Africa 

“We must fundamentally change how we approach business development. It is no longer enough to offer traditional connectivity services like internet or mobile plans. We need to deeply understand what matters to our customers—what their priorities are—and translate those needs into practical, meaningful use cases.”

– Mohamed Bennis, B2B Chief Sales Officer, Orange Morocco

 

Why Telcos Hold the Advantage 

Telecom operators are not accidental players in Africa’s mobile money story; they are structurally primed for it. Their edge lies in reach, infrastructure, trust, and regulatory positioning, all of which allow them to scale financial services faster and more affordably than traditional banks. 

Mobile penetration across the continent far exceeds access to bank accounts. With SIM cards, USSD, and mobile data networks already embedded in daily life, telcos possess an unrivalled platform for scaling digital financial services. In many countries, they reach users in remote villages where banks have no presence and where the cost of formal infrastructure is prohibitive.

Crucially, telcos also control vast agent networks. What began as airtime resellers has evolved into a continent-wide distribution system of mobile money agents. In 2024, there were 28 million registered agents in Africa, 10 million of whom are active each month. These agents provide cash-in and cash-out services, enabling true rural financial access without the need for brick-and-mortar branches.

Regulatory frameworks have evolved to support this model. Over 100 countries now offer e-money or payment service provider licences tailored to non-bank entities, allowing telcos to operate legally and at scale. This flexibility enables faster rollouts, broader experimentation, and significantly lower overhead costs compared to banks. Telcos can launch savings products, loans, and insurance without needing a full banking licence.

Perhaps most critically, telcos possess rich behavioural data—from top-ups and calls to geolocation and payment history. This enables alternative credit scoring, fraud detection, and targeted service design, making financial inclusion not just possible, but personalised. 

Banks are constrained by legacy systems and urban-centric infrastructure. Telcos, on the other hand, are mobile by design. That gives them a lasting structural advantage in building and expanding the financial ecosystems of the future. 

Collaboration, Not Competition: Building Africa’s Financial Future Together

The mobile money revolution may have begun with telcos, but the future of digital finance in Africa is fast becoming a shared endeavour. What lies ahead is not a question of whether telecoms will disrupt banking, but how far their reach can extend and with whom they will build.

Across the continent, we are already seeing signs of that next phase. Operators are expanding beyond basic services into more sophisticated offerings: cross-border remittances, health insurance, agricultural credit, and even asset financing. Fintechs are also becoming critical partners in this expansion, offering APIs, embedded services, and digital credit engines that enhance the scope of mobile platforms. Governments and banks are also stepping in—not as competitors, but as collaborators seeking to extend financial inclusion.

Importantly, telcos are restructuring themselves to meet the moment. By carving out their mobile money units into standalone fintechs, they are opening the door to new forms of capital, partnerships, and innovation. Leading banks are responding in kind, launching digital-first subsidiaries or integrating their services into telco platforms to remain relevant in a mobile-led era.

As this transformation accelerates, one truth becomes clear: the most inclusive financial systems will not be owned by any single player. They will be built through interoperable ecosystems, shared infrastructure, and collaborative innovation. For the billions still left out of the formal economy, this may be the most consequential shift of all.

“No single player can address this new paradigm alone. Success requires effort, investment, and, most importantly, genuine cooperation across the ecosystem—whether with startups, other companies, or even citizens themselves. This shift demands partnership at every level: with competitors to share infrastructure, with companies to develop joint solutions, and with hyperscalers to scale efficiently. Only through such partnerships—across software, telecom, and technology—can we truly respond to the needs of users” 

– Mohamed Bennis, B2B Chief Sales Officer, Orange Morocco