Mobile Money Taxes and Affordability in Sub-Saharan Africa: Evidence on User Behaviour and Market Impacts

This report examines how sector-specific taxes and levies affect the affordability and use of mobile money across five African markets: Cameroon, Kenya, Mali, Nigeria and Zambia. Combining stakeholder interviews with analysis of pricing, transaction patterns and available market data, the study finds that transaction-based taxes can raise the cost of everyday payments, encourage substitution back to cash, and disproportionately burden lower-income users and small businesses.

The report also highlights how tax design choices, such as the tax base (value vs. fees), thresholds, exemptions and how the levy interacts with operator pricing, shape both consumer outcomes and revenue performance. It concludes with practical recommendations for policymakers and revenue authorities to meet fiscal objectives while protecting financial inclusion and the sustainability of digital financial services.