Retail Payment Systems
In the OIC Member Countries
62
Mobile Money
At first glance, the opportunity for mobile money in Ivory Coast seems large. In general, West
Africa region continues to lag significantly behind East Africa in levels of mobile money
account ownership (6%), compared to over 20% in East Africa. Ivory Coast is an exception, a
regional mobile money hotspot, where almost one in four adults has a mobile money account,
and one in three an account at an formal financial institution.
With a population of 21 million and the highest GDP per capita in the region, it has one of the
most dynamic economies in West Africa. In addition, with only 15.13% of adults in Ivory Coast
having access to a formal financial institution, mobile money seems an evident conduit to
increase financial inclusion (Global Findex, 2015).
Early on, the BCEAO realised that mobile money had the potential significantly to increase
financial inclusion. In 2006, the BCEAO issued regulations on electronic money that qualified
non-banks for an e-money issuer license. Under this regulation, an e-money issuer can be a
bank (in partnership with an MNO) or a non-bank institution that has been granted a specific
licence by the central bank. Since this regulation was issued, five companies launched their
mobile money service: Orange, MTN and Moov (the three leading MNOs in the country,
licensed through their partner banks), and CelPaid and Qash Services (two non-bank e-money
issuers). Mobile money registrations have grown rapidly and today over 40% of the adult
population of the country has a mobile money account (GSMA, 2014).
The most obvious external factor driving the adoption of mobile money was the country’s
return to civil peace and economic recovery in 2012. A decade of political crisis culminated in
2010 when two candidates both claimed to have won the presidential election, triggering a
national conflict that weakened the economy and left the population vulnerable.
In the course of one week in February 2011, four banks suspended operations, creating a
major money shortage. Public distrust of the financial system deepened and was aimed at all
types of financial service providers, including mobile money providers. The limited presence of
banks, especially in rural areas, also made liquidity management more difficult and limited the
ability of mobile money agents to provide cash-out services. However, a return to civil peace
has helped to restart the economy. Mobile money providers in Ivory Coast agree that the post-
election crisis had a negative impact on their services and attribute the uptake of mobile
money in 2012 in large part to the country’s economic recovery. The uptake of mobile money
is not just the result of newfound stability, however. Since 2012, mobile money providers have
been using new and effective tactics to increase mobile money usage.