22nd November 2022
Welcome back to In A Giffy—the newsletter by TechCabal Insights that helps you make sense of Africa’s digital economy in a single chart. Please click on display images to view the chart on your mobile device.
In case you missed it,you can read the second edition here where we talked about the growth of BNPL in Africa and how to key in. Today’s newsletter focuses on agent networks in Africa.
Now, let’s dive in.
by Mobolaji Adebayo
As of last year, there were over 12 million mobile money agents globally, with only 5.6 million of them being active. Africa makes up 44% of this active figure due to a seven-year quarter on quarter growth of 7%.
Their presence is pivotal to Africa's digital economy ambitions as the continent battles underdeveloped infrastructure, low internet connectivity and high illiteracy rates. According to the World Bank, just 30% of Africa’s population uses the internet, and there are only 7 ATMs and 5 bank branches for every 100,000 adults living on the continent.
Agent networks have risen to the occasion, becoming the link between end customers and businesses/services trying to reach them, both in urban or rural areas. Today, they dominate the provision of digital financial services (DFS) across the continent.
How then can startup executives maximise their effect?
The agent network model is an effective channel for customer acquisition and engagement in Africa. We believe the future of Africa’s digital economy will be agent driven. By aggregating agent networks and leading with data, more value will be added to the agent network system.
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