Africa's Mobile Payments Spur Savings Accumulation, Yet Loan Availability Falters

In Sub-Saharan Africa, a significant shift has been observed in the financial sector over the past few years. According to the World Bank's Global Findex Database 2025, the region has seen a remarkable increase in financial inclusion, with mobile money playing a pivotal role.

Mobile platforms have become the dominant financial access channel in the region, with 40 percent of adults owning a mobile money account in 2024, up from 27 percent in 2021. This growth has significantly contributed to financial inclusion across Africa, making it the global leader in mobile money adoption.

Mobile wallets are widely used for household savings, small business growth, education, and health-related expenses. Millions of adults are now saving securely and regularly using mobile money, marking a significant leap in financial stability for many.

However, while savings growth is evident, the region still faces challenges in credit expansion. Only 23 percent of adults borrowed formally in 2024, unchanged from 2021. The majority of adults continue to depend on informal borrowing from family, friends, or community networks.

Structural barriers limit the growth of credit markets in Sub-Saharan Africa. Underdeveloped credit bureaus, lack of collateral, cautious regulatory approaches to digital lending, and the high cost of borrowing are some of the challenges that need to be addressed.

Expanding micro-lending models could help unlock broader economic opportunities in the region. The next phase of financial inclusion in Africa must focus on credit expansion, and strengthening consumer protection frameworks could help move the region from savings growth to credit empowerment.

One potential solution is using mobile transaction histories for credit scoring, which could help expand access to responsible credit in Sub-Saharan Africa. This approach could help address the gender gaps in formal borrowing that persist, with women being less likely to borrow formally than men in the region.

The increase in adults taking formal loans between 2021 and 2024 has been the most significant in Sub-Saharan Africa. This trend, combined with the dramatic rise in the share of adults saving formally in several economies, such as Senegal, indicates a positive shift towards formal financial services.

Digital finance is playing a growing role in building resilience in Sub-Saharan Africa. However, it's crucial to ensure that rural populations, who continue to face barriers in accessing affordable credit products suited to their needs, are not left behind in this digital revolution.

In conclusion, while Sub-Saharan Africa has made significant strides in financial inclusion, particularly in mobile money adoption, there is still work to be done to ensure broader access to formal credit. By addressing the structural barriers and focusing on credit expansion, the region can continue to build a more resilient and inclusive financial landscape.

Africa's Mobile Payments Spur Savings Accumulation, Yet Loan Availability Falters