- P33.5 billion transactions fuel Botswana’s digital economy despite subscriber drop
As the country moves towards financial inclusion, mobile money services continue to play a pivotal role in the economy, with the value of mobile money transactions increasing from P26.5 billion to P33.5 billion from March 2023 to March 2024. This is despite the fact that during the reporting period, the number of mobile money subscribers went down from 1.68 million to 1.13 million subscribers in March 2024. Since March 2019, the number of subscribers had been skyrocketing annually, going from 1.15 million to 1.25 million in 2020, 1.46 million in 2021, and 1.66 million in 2022. This means that, for the first time since the inception of the services, there has been a decline in the number of subscribers.
Mostly catering to the population not served by the traditional banking systems, mobile money services remain a solution for the unbanked. Currently offered by mobile network companies such as Orange, Mascom, Botswana Telecommunications Limited (BTCL), and BotswanaPost, these services are emerging as convenient solutions in the financial sector for the unbanked market.
According to the 2024 Botswana Communications Regulatory Authority (BOCRA) annual report, the mobile money segment is showing tremendous growth on a yearly basis. While the number of mobile money accounts grew by 46% between March 2019 and March 2023, the segment has suffered a 33% decline in subscriptions during March 2024.
With all three local telecommunications companies, together with BotswanaPost, actively involved in the mobile money market space, Orange—through its flagship Orange Money product—continues to enjoy a larger market share with 78% of the customers. Mascom follows with MyZaka, holding 11% of the market share, while BTC’s Smega Money and BotswanaPost hold 7% and 4% of the market, respectively.
Robustly flexing its muscle, Orange Money has been the great beneficiary, gaining a much bigger portion of the market at the expense of its competitors. The change in market share, influenced by the data clean-up exercise—which differentiates registered and active subscribers—conducted last year, left a significant shift in the market. Initially, in the previous financial year, Orange was the market leader at 49%, followed by Mascom at 38%, BTC at 11%, and BotswanaPost at 2%.
“Owing to the convergence between technology and financial services, mobile money is now interoperable with traditional bank accounts, bringing about the much-needed convenience for users. Cross-border transactions are also possible, making mobile money an even more attractive and widely accepted option in payment processes,” explained the BOCRA report.
The mobile money services commenced in Botswana in 2018, anchored by local telecommunications companies together with BotswanaPost, targeting the population outside the formal banking sector. In terms of mobile telephone market share, Orange continues to lead with 43%, followed by Mascom and BTC at 42% and 15%, respectively, in March 2024. Initially, Mascom was the market leader, with 43%; Orange and BTC trailed at 41% and 16%, respectively, in 2023. However, the shift in market share is a sign of competitive forces and consumer demand that affect customer distribution among various operators.
