Mobile money in East Africa could become more popular if the regional rules are coordinated and harmonized, reveals a report.
The 2012 United Nations Conference on Trade and Development (UNCTAD) report attempts to address issues affecting mobile money in the region, where cell phones transfer more than half a billion dollars monthly.
The report maintains that East African governments need to address issues relating to telecommunications and financial regulation to ensure that mobile money services bring the desired broad benefits, especially to the poor.
East African banks are mostly situated in urban centres and most people are closed out of banking services.
Mobile transfer has become so popular on the continent since the introduction of the Mpesa mobile money in 2007. The platform now has more than 15 million monthly active users.
According to the GSM Association, Africa has taken the lead in mobile money implementation, with about 60 mobile money services already in place of the total 130 systems worldwide.
The rapid growth in mobile money services has added urgency to the need for an effective and robust legal and regulatory framework, UNCTAD says.
The UNCTAD study provides an overview of the current mobile money landscape in East Africa in addition to describing the status of the regulatory framework in each of the five EAC countries.
It also makes broad recommendations geared towards easing access to mobile money services, making the tools offered more useful, and protecting those who use them.
UNCTAD report urges for coordination and cooperation across sectors such as telecommunications, banking and electronic commerce. It also puts in consideration issues of trust and consumer protection, registration and transaction limits, regulatory collaboration and interoperability.
The report recommends for more harmonization and collaboration at East Africa level in regulating mobile money so that intraregional use of the technology can be expanded – a step that could boost regional economic growth.
