Unlocking Financial Inclusion Across Africa

Across Africa, where the World Bank estimates 57percent of adults lack access to formal banking, a quiet revolution in financial services is reshaping the economic landscape. We’re seeing a rapid uptick in adoption of contactless payment technologies.

This transformation is driven by the continent’s need for solutions that bridge the gap left by traditional banking systems. As millions gain access to financial services outside traditional banking frameworks, we are witnessing a cultural shift.

Contactless payment systems such as M-Pesa in Kenya, EcoCash in Zimbabwe, EVC Plus in Somalia and MTN Mobile Money across the continent are revolutionising how money is managed. By turning mobile phones into financial hubs, these platforms enable services that extend beyond simple transactions to money transfers, bill payments, savings, and loans. This development is a lifeline to the unbanked, allowing them to participate in the economy and build financial independence.

Innovation at the intersection of finance and tech is helping drive this shift. In Nigeria, innovative platforms like Paystack and Flutterwave are transforming business operations by enabling thousands of SMEs to tap into e-commerce ecosystems. This allows them to expand market reach without relying on physical banking facilities, accelerating their growth potential.

The impact of these technologies is profound in Somalia, a country that emerged from civil war and began to rebuild whilst grappling with ongoing instability. Formal banking services are sparse as a result of the conflict, leaving much of the population unbanked and reliant on informal financial systems. However, the rise of mobile money, pioneered by private sector players, has filled this void. Services like Hormuud’s EVC Plus platform and the Waafi mobile app have gained traction across the country.

In Somalia, mobile money is a necessity for daily transactions, driving commerce and livelihoods in an environment where traditional banking has been largely absent. Against this backdrop, the Tap n Go contactless payment solution, launched by Hormuud Telecom in partnership with Salaam Somali Bank, Waafi, Mastercard and Paymentology, stands out. By leveraging mobile money infrastructure, Tap n Go offers a seamless, secure and speedy way to engage in cashless and contactless mobile transactions, where you tap to pay using the Waafi app. Contactless payments, and other innovations currently in development, are poised to play an important role in driving Somalia’s economic growth, with World Bank predictions estimating Somalia’s GDP will rise to 3.9% this year.

As Somalia demonstrates, at grassroots level, contactless payments are not just facilitating transactions. They are easing the flow of funds and broadening participation in the formal economy, whilst also laying the foundations for a thriving African digital economy.

Yet the story in Somalia also highlights the challenges the continent must overcome to harness this opportunity for financial inclusion and growth. Lacking digital literacy, particularly among last-mile communities, cybersecurity risks, and the need for robust regulations are hurdles that need to be addressed. Bridging the digital divide between urban and rural areas remains paramount to unlocking financial inclusion for all.

The solution is a joined-up approach that combines continued innovation with partnerships between governments, the private sector, and international bodies, enabled by targeted investment. The key is creating greater access to affordable technology and financial solutions that are adapted to unique local contexts.

Only then can this quiet revolution become systemic change that creates economic inclusion, resilience, and growth for generations to come.

This article was written by Ahmed Yusuf, the CEO, Hormuud Telecom