Africa is undergoing a significant transformation in its payment systems, with a growing number of countries adopting cashless transactions. According to a recent report, Sub-Saharan Africa accounted for 48% of global mobile money accounts in 2024, with 835 million accounts across the region.

This shift towards digital payments is driven by rapid advancements in financial technology and increasing smartphone penetration. As a result, African nations are gradually moving away from traditional cash-based systems, which have long posed challenges to economic growth and financial inclusion.

Despite progress, about 90% of retail transactions in sub-Saharan Africa are still cash-based, according to the World Bank. However, the adoption of digital payments is gaining momentum, with East Africa accounting for 50 million mobile money accounts, West Africa - 66 million, Central Africa - 14 million, and South Africa - 4 million.

The benefits of transitioning to digital payments are numerous, including reduced transaction costs, faster processes, and enhanced transparency. Handling cash has proven to be expensive, time-consuming, and prone to errors, making the switch to cashless systems a crucial step towards improving economic efficiency.

A recent study by Statista highlights the top 10 African countries with the highest percentage of their population engaging in digital payments as of 2024. Kenya leads the way, with 75.8% of its population making digital payments, followed by South Africa (70.5%), Ghana (63.7%), Gabon (62.3%), and Namibia (58.5%). The list also includes Zimbabwe, Lesotho, Tanzania, Zambia, and the Congo Republic.

This trend towards cashless transactions is expected to have a significant impact on Africa's economies, driving growth, and improving financial inclusion. As the continent continues to adopt digital payments, it is likely to see a reduction in transaction costs, increased efficiency, and enhanced transparency.

However, there is still much work to be done to accelerate the adoption of digital payments across the continent. Governments, businesses, and individuals must work together to promote the use of digital payments and address the challenges that remain, including the need for improved infrastructure and greater financial literacy.

As Africa continues to lead the way in mobile money accounts, it is clear that the continent is poised for a cashless revolution. With the right investments and policies in place, Africa can harness the power of digital payments to drive economic growth, improve financial inclusion, and transform its economies for the better.