economies in Sub-Saharan Africa

Mobile money accounts are playing a growing role in formal borrowing in some economies in Sub-Saharan Africa

As mobile money account ownership has expanded in recent years, so, too, have account features in some economies that allow account owners to borrow. The Global Findex 2021 survey asked for the first time about formal borrowing through the use of a mobile money account. This credit could be directly from a mobile money service provider or provided in partnership with a bank. Not surprisingly, the share of adults who reported having borrowed any money using their mobile money account was small (3 percent). Even in SubSaharan Africa, where mobile money account ownership is most widespread, just 7 percent of adults reported having borrowed using their mobile money account. Economies with some of the highest mobile money account ownership rates nonetheless stand out with much higher-than-average borrowing patterns. In Kenya, the pioneer in mobile money in the region and the economy with the most mature mobile money market, 30 percent of adults reported having borrowed money using their mobile money account. In Uganda, that share was 16 percent. In both Kenya and Uganda, about one-third of borrowers using a mobile money account also borrowed from a financial institution or by using a credit card. Rounding out the list of economies where at least 10 percent of adults borrowed any money using a mobile money account are Ghana and Tanzania, each with a share of about 10 percent. In these two economies, the overwhelming majority (more than 80 percent) of those who borrowed using a mobile money account did not also borrow from a financial institution or through a credit card (figure 2.3.5).

FIGURE 2.3.5 Borrowing using a mobile money account is becoming more common in some economies in Sub-Saharan Africa

Adults borrowing any money in the past year (%), 2021

Borrowed formally from a financial institution or through use of a credit card Borrowed formally using a mobile money account only

Borrowed semiformally Borrowed from family or friends Borrowed from other sources only

Source: Global Findex Database 2021. Note: People may borrow from multiple sources, but the categories in the figure are constructed to be mutually exclusive. “Borrowed formally” includes all adults who borrowed any money from a financial institution or through the use of a credit card or mobile money account. “Borrowed semiformally” includes all adults who borrowed any money semiformally (from a savings club) but not formally. “Borrowed from family or friends” excludes adults who borrowed formally or semiformally.