Mobile Banking in Africa

A major difficulty for the people in the poorest parts of Africa (and some other areas) is a lack of infrastructure. There often is, for example, little or no telephone service, very poor roads, and few banks. Businesses cannot follow that most basic of control principles of depositing their cash every day. Making a deposit often involves a long and sometimes dangerous journey.

The ability of such areas to plug into the information economy is limited or non-existent.

Mobile phones have been a notable exception. Nowadays its not unusual to see a Masai warrior with a cell phone at his ear.

Mobile phones provide an opportunity that is not going unnoticed. In one case, as outlined in the referenced article, they are being used to provide banking services. Special accounts are set up and money can be texted from one person to another using the service. it provides a form of electronic cash and also gives the money much greater mobility. And the velocity of money is one of the underpinnings of a robust economy.