New report explores how to break Africa's cash dependency

Affinity Africa, in partnership with the Mo Ibrahim Foundation and Yale University's International Leadership Center, released a new report examining the ongoing dependence on cash throughout Africa and the policy actions required to accelerate the continent's digital financial transformation. 

Despite Africa leading the world in mobile money adoption, with 74% of global mobile money transactions, the report finds that digital payments have yet to provide sufficient advantages over cash for many households, merchants and small businesses. As a result, most digital funds are withdrawn immediately, limiting the wider economic benefits of financial inclusion and constraining access to credit, formalisation and investment. 

The report argues that overcoming cash dependency requires coordinated action to make digital payments more affordable for merchants, ensure interoperability across payment systems and create stronger incentives for users to remain within the digital financial ecosystem. It also highlights the complementary roles of governments, regulators, financial institutions, development partners and investors in supporting this transition. 

Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation, wrote the foreword of the report and commented on the publication. 

"Incremental reform will not be enough. The public sector must move faster in building the regulatory clarity, institutional coordination, and governance frameworks capable of supporting Africa's next phase of economic transformation. Because ultimately, ownership cannot exist without accountability, and economic autonomy cannot exist without strong institutions."