SENEGAL: Mobile Money Drives Financial Inclusion Amid Opportunities for Expansion

Mobile money has emerged as a key player in Senegal’s financial ecosystem, driving financial inclusion and presenting opportunities for expansion. According to recent data, mobile money access points have grown by 37 percent over the past year, with a significant increase in the number of access points per 10,000 people.

Key Drivers of Growth

Major players such as Ecobank, Masterpass QR codes for merchant payment, and Wari’s acquisition of Tigo, the second-largest telecommunications firm in Senegal, have contributed to the growth.
Société Générale Bank is set to launch a mobile money offering soon, while Orange has registered over 10 million customers on its mobile payment platform.

Impact of Mobile Money

Mobile money has become an indispensable tool for many Senegalese, with the median number of access points per 10,000 people increasing from 3.8 last year to 5.2 this year.

Over 81 percent of financial access points belong to mobile network operators.
All regions in Senegal have experienced growth in mobile money.

Opportunities for Expansion

Despite advancements, there are still opportunities for expansion:

In some regions such as Fatick, Kaffrine, Louga, Thies, and Diourbel, people are paid in cash more than the rest of the country, presenting an opportunity for mobile network operators to encourage digitization of wages and increase access points.
Underserved populations living in urban areas also require attention. The analysis found that many areas within Dakar have unmet demand for financial access points, highlighting the need for a mix of financial services tailored to their needs.

UNCDF’s Mobile Money for the Poor (MM4P) Program

The UNCDF’s MM4P program has launched initiatives to build a robust digital financial services ecosystem in Senegal, particularly in rural areas. The program is committed to:

Improving financial access points
Supporting an aggregator to increase active mobile money agent networks in targeted areas

Roadmap for Financial Inclusion

As the country aims to reach full financial inclusion, it is crucial that Senegal continues to focus on connecting its underserved and excluded populations to appropriate financial services. With 15 percent of adults currently having access to an account, there is still a long way to go, but digital financial services are likely to continue driving growth in the number of access points.

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