A recent article in Telecom Circle has been noticed by many tech blogs notably Mobile Banking. It is an interesting read about the impact of mobile telecommunication on the macro-economics. The author quotes a number of studies showing that mobile telecommunication contributes (or could contribute) to the GDP with a growth of 0.6% for 10% growth in subscriber numbers. On can assume that this excludes the benefits of utilizing the infrastructure to also deliver financial services, as many of the studies referred to excluded this benefit.

Studies have indicated that the replacement of cash with electronic payment systems will lead to direct macro-economic benefits. A white paper produced by Visa and Global Insights in 2003, found that a 10% increase in electronic payments can lead to as much as 1% growth in GDP and can directly lead to job creation. Numerous academic papers (Humphrey, Pulley and Vesala) have found potential gains as high as 3% (specifically savings) in GDP.

The recent development and simultaneous introduction of efficient electronic payment systems on top of mobile communication in Africa could lead to a spectacular growth in GDP. The indirect benefits, like the creation of jobs, increase in tax collection could be tremendous. Mobile banking, in our humble opinion, should therefore be encouraged in Africa.