In a strategic move poised to reshape the digital financial landscape in West Africa, Lomé-based startup Gozem has announced its entry into the Mobile Money sector. Known for its ride-hailing services, Gozem is set to introduce its mobile financial platform, Gozem Money, in Togo during the fourth quarter of 2024, signaling the company’s growing ambition beyond transportation.
This development aligns with the rapid expansion of Mobile Money services across Africa, where financial inclusion is becoming a key driver of economic development. With forecasts suggesting an annual growth of 16% to 20% in the African Mobile Money sector through 2030, Gozem is positioning itself among a wave of fintech startups — such as Wave and Sama — looking to capitalize on this booming market.
Gozem’s Mobile Money service, launched in partnership with NSIA Banque, will allow users to carry out digital financial transactions, from bill payments to online purchases and money transfers, all through its mobile app. This marks a significant shift in the company’s strategy, as it diversifies its offerings and leverages its existing mobility platform to reach a wider audience. The announcement was made on September 11, 2024, at a press conference in Lomé, where company representatives emphasized their commitment to driving financial inclusion in Togo and beyond.
The forthcoming launch of Gozem Money comes on the heels of Gozem’s acquisition of Moneex, a Beninese fintech startup specializing in electronic payments. This acquisition has accelerated Gozem’s foray into financial services, allowing the company to establish a foothold in the highly competitive Mobile Money market. Togo, with its expanding digital finance ecosystem, was chosen as the launchpad for this venture, but Gozem has broader ambitions. Following its initial rollout in Togo, Gozem Money plans to expand into other markets where the company already operates, including Benin, Gabon, and Cameroon.
Togo’s Mobile Money market is witnessing robust growth. In the first quarter of 2024, total transaction value reached 917 billion FCFA (approximately $1.54 billion), reflecting a 3% increase over the previous quarter. The market is currently dominated by two major players: Togocom, which controls 61% of the market through its TMoney service, and Moov Africa Togo, which holds 39% with its Flooz service. While TMoney saw an 11% increase in transactions to 649 billion FCFA, Flooz experienced a 12% decline, settling at 269 billion FCFA.
Despite the competition, there remains ample room for new entrants. Coris Money, for example, has struggled to gain a significant share of the market, while Wave’s attempts to enter Togo were thwarted by regulatory challenges. This leaves Gozem with a unique opportunity to carve out a niche in the growing sector, particularly as mobile financial services in Togo remain underdeveloped compared to other African countries.
Togo’s Mobile Money penetration rate stands at just 42.4%, trailing behind regional leaders like Kenya, where M-Pesa dominates digital transactions, and Benin, where interoperability between different financial services has pushed the penetration rate to 89%. This disparity highlights the significant potential for growth in Togo, where digital financial solutions are gaining traction but have not yet reached their full potential. While basic services such as money transfers and bill payments are widely adopted, Mobile Money usage for merchant transactions remains underutilized, pointing to a ripe opportunity for innovation.
Gozem’s entry into this space could help bridge this gap. By leveraging its existing transportation network and customer base, the company aims to promote widespread adoption of its financial services. In addition, the firm’s cross-border strategy positions it to capture market share not only in Togo but across West Africa, where Mobile Money is playing an increasingly important role in financial inclusion.
As Gozem prepares to launch its service in Togo, the company’s leadership has made it clear that this is just the beginning. The company’s long-term vision is to expand its financial services across the region, building a seamless, integrated platform that can cater to the needs of millions of underserved customers in West Africa.
In a continent where 57% of the population remains unbanked, the introduction of innovative digital financial services like Gozem Money has the potential to transform economies and enhance the lives of everyday citizens. For Gozem, this move represents a bold step forward as it continues to evolve from a transportation service provider into a broader, tech-driven platform designed to meet the digital needs of Africa’s future.
As the Mobile Money market heats up, the race to secure a leading position in West Africa’s fintech ecosystem is well underway, and Gozem’s next steps could very well determine its place in the region’s financial future.