A digital wave is reshaping how money flows into Central Africa. In 2023, the diaspora community sent a record 557.3 billion FCFA (approximately $992 million) to the Central African Economic and Monetary Community (CEMAC) via mobile money, according to the Bank of Central African States (BEAC). This surge in mobile remittances highlights a significant shift away from traditional cash-based transfer services, with a British fintech, WorldRemit, playing a pivotal role in this transformation.
The majority of these funds, which are a lifeline for many families and a significant contributor to local economies, originate from Europe. The CEMAC diaspora in Europe sent 399 billion FCFA ($710M), with the Americas contributing another 105.2 billion FCFA ($187.4M). These figures underscore the deep ties between the region and its citizens abroad, and the increasing reliance on digital channels for sending money home.
Cameroon: The Engine of Central Africa’s Mobile Money Market
At the heart of this mobile money boom is Cameroon. The country is the undisputed leader in the CEMAC region, which also includes Chad, the Central African Republic, Congo-Brazzaville, Equatorial Guinea, and Gabon. According to a recent report from BEAC, Cameroon accounts for a staggering 62.11% of all Central Africa’s mobile money remittance accounts, 63.58% of transaction volumes, and 76.57% of the total transaction value in the region.
This dominance is fueled by a combination of high mobile phone penetration and a tech-savvy population that has readily embraced digital financial solutions. “In Cameroon, technology plays a central role in people’s lives, and money transfers are no exception,” explained Imane Charioui, then-Director for Francophone Africa and the Middle East at WorldRemit, in a recent interview. “They are gradually becoming the preferred method for customers, proving to be as safe as bank transfers and much faster, cheaper, and more convenient.”
The British Connection: How WorldRemit is Fueling the Growth
A key enabler of this digital transformation is WorldRemit, a London-based fintech founded in 2010 by Somali-born British entrepreneur Ismail Ahmed. Ahmed’s own experiences with the high costs and inefficiencies of traditional remittance services inspired him to create a digital-first platform that would make it easier and cheaper to send money across borders.
WorldRemit has made significant inroads in Africa, and Cameroon has been a key market for the company for years. As far back as 2018, Andrew Stewart, then-Regional Director for Africa and the Middle East at WorldRemit, stated, “Cameroon is our most important and fastest-growing market in Francophone Africa, with 120% annual growth.”
The company’s success in the region is built on strategic partnerships with local mobile money providers. By integrating with major players like MTN and Orange, as well as the established local financial institution Express Union, WorldRemit allows the diaspora to send money directly to the mobile wallets of their relatives in Cameroon. This seamless integration has been a game-changer, eliminating the need for recipients to travel to a physical agent to collect cash.
In 2020, WorldRemit acquired another Africa-focused remittance company, Sendwave, for over $500 million and formed a new parent company, Zepz. This move solidified its position as a global leader in digital remittances, and in 2021, Zepz was valued at $5 billion after a major funding round.
The Broader Impact: Financial Inclusion and Economic Development
The rise of mobile money remittances is having a profound impact on the CEMAC region. For individuals, it provides a more accessible, affordable, and secure way to receive funds, which are often used for essential needs like education, healthcare, and daily living expenses.
On a broader scale, the mobile money boom is a powerful driver of financial inclusion. By providing a gateway to digital financial services for previously unbanked populations, mobile money is helping to build a more inclusive financial ecosystem. It is also fostering economic development by facilitating the flow of capital into local communities and supporting small businesses.
As the mobile money market in Central Africa continues to mature, the opportunities for further innovation are vast. With fintechs like WorldRemit continuing to invest in the region and expand their services, the trend towards digital remittances is set to accelerate, further empowering the diaspora and their families back home. The nearly $1 billion in mobile money transfers in 2023 is not just a statistic; it’s a testament to the transformative power of technology in connecting communities and fostering economic opportunity.