Diaspora remittances to Central Africa shift from banks to mobile money, central bank data showsDiaspora remittances to Central Africa are increasingly bypassing banks and traditional money transfer operators in favour of mobile money platforms, as faster, cheaper digital services reshape how funds are sent and received across the region, according to central bank data.
The trend marks a significant shift in the Central African Economic and Monetary Community, known as CEMAC, where remittances have long been a key source of household income but were traditionally channelled through firms such as Western Union, MoneyGram and RIA or via partner banks.
In its 2024 report on payment services, the Bank of Central African States said more than CFA 1.354 trillion was transferred directly to mobile money accounts during the year, highlighting the rapid rise of digital financial services in the region.
The bank, known by its French acronym Banque des États de l’Afrique Centrale, said mobile money has become a central financial link between families in Central Africa and relatives living abroad, capturing a growing share of cross-border remittance flows.
Officials said the shift is being driven by several factors, including lower transfer costs, near-instant settlement times and improved accessibility through mobile phones, particularly in rural and underserved areas where banking infrastructure remains limited.
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Interoperability between mobile money providers and international transfer operators has also helped accelerate adoption, allowing users to send funds directly into mobile wallets without requiring a traditional bank account.
Diaspora communities in Europe remain the largest source of mobile money-linked remittances into CEMAC countries, accounting for CFA 804 billion in 2024 across 4,275 transactions, according to the report.
Transfers from CEMAC nationals living in North America were significantly lower, at about CFA 275 billion, while those from Africans residing in other parts of the continent outside West Africa amounted to CFA 172.3 billion.
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Smaller flows were also recorded from Europe outside the European Union, as well as from ECOWAS countries, Oceania and Latin America.
Despite their relatively small size, these transfers highlight the widening geographic reach of mobile-enabled remittance channels.
The central bank said the expansion of mobile money has not only changed how funds are transferred but has also contributed to broader financial inclusion across the region, where many people remain outside formal banking systems.
Total mobile money transaction value in the CEMAC zone rose from CFA 28.911 trillion in 2023 to more than CFA 34.788 trillion in 2024, an increase of 20.33 percent year-on-year.
Analysts say the trend reflects a broader structural shift in African financial ecosystems, where mobile-based platforms are increasingly competing with banks in retail payments, savings and cross-border transfers.
Mobile money services allow users to store value, send and receive funds, pay bills and access basic financial services using only a mobile phone, making them particularly effective in regions with limited banking penetration.
In Central Africa, where infrastructure gaps and high transaction fees have long constrained formal financial access, mobile money is increasingly seen as a practical alternative for diaspora remittances.
However, experts caution that while the growth of digital transfers is accelerating financial inclusion, regulatory harmonisation and cross-border oversight will be critical to managing risks such as fraud, money laundering and system fragmentation.
Even so, the data suggests that mobile money is steadily reshaping remittance corridors into CEMAC countries, with diaspora communities at the centre of this transformation.
