Across Africa’s vast and vibrant continent, a digital financial revolution is unfolding, reshaping how people transact, save, and invest. E-currencies, electronic forms of money such as mobile money, cryptocurrencies, and central bank digital currencies (CBDCs), are driving unprecedented change in a region historically reliant on cash.
With 54 countries, diverse economies, and a youthful, tech-savvy population, Africa is emerging as a global leader in digital currency adoption. It addresses challenges like financial exclusion, high remittance costs, and economic volatility.
Going back in memory lane, Africa’s journey with e-currencies began with mobile money, a game-changer for financial inclusion. In 2007, Kenya’s telecom giant Safaricom launched M-Pesa to revolutionise payments by allowing users to send and receive money via SMS on basic mobile phones.
Over eighteen years, M-PESA has grown from a pioneering mobile money transfer service in Kenya to Africa’s largest fintech solution, serving over 70 million customers across over 170 countries and handling billions annually.
Similarly, platforms like MTN Mobile Money (MoMo) in Nigeria, South Africa and Ghana, as well as Airtel Smart Cash in Uganda (and other parts of Africa) have followed suit.
These fintechs seek to leverage Africa’s growing mobile penetration – over 1.3 billion mobile connections in 2024 – to bring banking to the unbanked. It is worth noting that mobile money accounts for over 70% of global transaction volume, with sub-Saharan Africa leading the charge.
Cryptocurrencies have also gained traction, driven by economic instability and distrust in traditional banking on the continent. Bitcoin, Ethereum, and stablecoins like Tether are popular in countries like Nigeria, South Africa, and Kenya, where they serve as hedges against inflation and currency devaluation.
Nigeria, for instance, ranks among the top globally for crypto adoption, with platforms like Bitget, Bybit and Luno facilitating peer-to-peer trading. With over 80 startups in the space collectively raising $130 million, the country ranked second globally for crypto adoption in 2024, receiving $59 billion in crypto value, including $24 billion in stablecoins.
The latest frontier is CBDCs, with Nigeria’s eNaira leading the charge. Launched in October 2021 by the Central Bank of Nigeria, the eNaira aims to enhance financial inclusion, reduce cash dependency, and improve remittance efficiency
Other countries, like Ghana (eCedi) and South Africa, are piloting CBDCs, signalling a shift toward state-backed digital currencies.
Opportunities and impact of e-currencies in Africa
E-currencies are transforming economies in Africa in profound ways.
For the 400 million unbanked adults in Africa, mobile money provides access to savings, credit, and insurance, empowering small-scale traders and rural farmers. Cross-border platforms like M-Pesa’s integration with Western Union enable affordable remittances.
In the same way, cryptocurrencies offer an alternative for tech entrepreneurs and diaspora communities, bypassing costly banking fees.
E-commerce offers a unique example. Platforms like Jumia and Takealot accept digital payments, while blockchain-based solutions ensure secure supply chains. In agriculture, startups like Agri-wallet in Kenya use mobile money to provide loans to farmers, boosting productivity.
Notably, e-currencies support Africa’s gig economy, enabling freelancers to receive payments globally via crypto or mobile wallets.
Meanwhile, despite their promise, e-currencies face their hurdles. Regulatory uncertainty is a major issue, with a handful of countries introducing some form of a ban on crypto trading.
Cybersecurity risks, including hacks and fraud, threaten user trust. According to anonymised data from the Kaspersky Security Network (KSN), African businesses and individuals faced a barrage of web-based threats, on-device attacks, and sophisticated data-theft schemes in 2024, with a staggering 131.6 million web threats detected across the continent
Infrastructure gaps, such as unreliable internet and power, hinder adoption in rural areas. Additionally, CBDCs raise privacy concerns, with fears of government surveillance deterring users.
Economic volatility also complicates e-currency use. The Nigerian Naira, for instance, depreciated by 60% against the USD from 2022 to 2025, driving crypto adoption but exposing users to volatile markets. Illiteracy and low digital literacy in some regions further limit access, particularly for older populations.
Looking forward, Africa’s e-currency landscape is poised for growth, driven by regional integration and innovation.
The African Continental Free Trade Area (AfCFTA) aims to streamline digital payments to boost intra-African trade, potentially through a unified currency like the proposed “Afro”. Likewise, the Economic Community of West African States (ECOWAS) plans to launch the Eco, replacing the CFA Franc, with digital components to rival CBDCs
Meanwhile, the East African Community is exploring a digital East African Shilling.
Private sector innovation is equally critical. Startups like Flutterwave, Paystack, and now Moniepoint are building cross-border payment gateways, while blockchain projects like Cardano’s partnerships in Ethiopia enhance education and identity systems.
With Africa’s population projected to reach 2.5 billion by 2050 and 60% under 25, the continent’s digital-first generation will drive e-currency adoption.
Finally, Africa’s embrace of e-currencies reflects its resilience and ingenuity in navigating economic challenges. From M-Pesa’s grassroots impact to the eNaira’s pioneering role, these digital tools are not just currencies but catalysts for inclusion, innovation, and growth.
As Africa balances opportunity with regulation and infrastructure development, its digital currency revolution could accelerate its financial inclusion dreams, making them a reality, one transaction at a time.
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