The mobile money market in Africa is booming, with projected annual growth of 16% to 20% through 2030. After telecom giants led the way, fintech companies like Gozem, Wave, and Sama are now entering the sector, focusing on financial inclusion and technological innovation to change how people manage everyday transactions.

Gozem is making a bold move by launching "Gozem Money," a mobile money service. This new offering, developed in partnership with NSIA Bank, is set to debut in the fourth quarter of 2024. Based in Lomé, Togo, the startup aims to provide Togolese customers with a variety of digital financial services, including bill payments, online purchases, and money transfers—all through the Gozem mobile app.

The announcement was made yesterday during a press conference in Lomé. It came just months after Gozem acquired Moneex, a Beninese startup specializing in electronic payments. The acquisition has helped Gozem speed up its entry into West Africa's financial market. Togo will be the launchpad, with plans to expand the service to other countries where Gozem already operates, including Benin, Gabon, and Cameroon.

Togo was a strategic choice for this launch. The country’s mobile money market is growing fast. By the first quarter of 2024, the total value of mobile money transactions in Togo reached CFA917 billion ($1.54 billion), up 3% from the previous quarter. This growth is mainly driven by Togocom's TMoney service, which holds 61% of the market, and Moov Africa Togo's Flooz, which holds the remaining 39%. TMoney grew by 11% to CFA649 billion, while Flooz saw a 12% drop to CFA269 billion.

Despite the growth, Togo’s mobile money market still has room for expansion. Coris Money, for instance, has struggled to compete with the leaders, and Wave’s plans to enter the market were blocked by Togolese authorities.

While sending and receiving money and paying bills via mobile money have become common as Togo modernizes its economy, mobile money for commercial transactions is still lagging behind, especially compared to services like M-Pesa in Kenya. This gap shows the market’s untapped potential for innovative solutions. With a mobile money penetration rate of only 42.4% among Togo's 8 million residents, there’s significant room for growth, especially when compared to Benin, which could be Gozem Money’s next target market. In Benin, mobile money penetration stands at 89%, thanks to an interoperable market led by major players like MTN, Moov, and Celtis, the state-run operator.