Gozem's Strategic Move into Fintech
In an ambitious expansion of its service offerings, Gozem, the Lomé-based startup known for its mobility and delivery services, is diving into fintech with the launch of “Gozem Money.” This new mobile money platform, developed in collaboration with NSIA Bank, is set to debut in the fourth quarter of 2024. By introducing this service, Gozem aims to offer Togolese customers access to digital financial services such as bill payments, online shopping, and money transfers—all accessible through the existing Gozem mobile app.
This move marks a significant step forward for the company, reinforcing its commitment to providing comprehensive, tech-driven solutions for its users across West Africa.
Accelerating Growth: The Role of the Moneex Acquisition
Gozem’s entry into the financial services sector comes on the heels of its acquisition of Moneex, a Beninese startup specializing in electronic payments. Announced just months before the launch of Gozem Money, the acquisition has accelerated Gozem's push into West Africa’s growing financial services market. Togo will serve as the launchpad for the new mobile money service, with plans to expand into other markets where Gozem already has a presence, including Benin, Gabon, and Cameroon.
The move to acquire Moneex aligns with Gozem's strategy of building an ecosystem that integrates mobility, delivery, and financial services into one seamless platform, helping to meet the diverse needs of its users.
Togo’s Mobile Money Market is Ripe for Innovation
Gozem’s decision to launch its financial services in Togo was a strategic one. The country’s mobile money market has been growing rapidly, with transactions reaching a total value of CFA917 billion ($1.54 billion) by the first quarter of 2024—a 3% increase from the previous quarter. The market is currently dominated by TMoney, Togocom’s service, which holds a 61% market share, while Moov Africa Togo’s Flooz commands the remaining 39%.
Despite this growth, there is still ample room for expansion and innovation. While mobile money is widely used for sending and receiving funds as well as bill payments, commercial transactions via mobile money have yet to take off, particularly when compared to more advanced platforms like M-Pesa in Kenya. This gap presents a prime opportunity for Gozem Money to introduce innovative solutions and capture a significant share of the market.
Gozem Money’s Position in the Market
Gozem enters a competitive mobile money market, but it is one that still offers potential for disruption. Market leaders TMoney and Flooz have maintained strong positions, with TMoney experiencing an 11% growth to CFA649 billion, while Flooz saw a 12% decline to CFA269 billion. Despite these dominant players, smaller operators like Coris Money have struggled to gain traction, and even Wave, another major fintech player, faced regulatory roadblocks when attempting to enter the Togolese market.
Gozem Money’s partnership with NSIA Bank, alongside its acquisition of Moneex, positions it to offer a unique blend of mobility and financial services, differentiating itself from existing players. With its established user base and reputation for innovative solutions, Gozem has the potential to disrupt the current market dynamics and capture a significant portion of the mobile money sector.
Market Expansion: The Road Ahead for Gozem Money
Gozem’s ambitions for Gozem Money extend beyond Togo. With its sights set on other West African markets, the company plans to expand into Benin, Gabon, and Cameroon—countries where it already operates in the mobility and delivery sectors. Benin, in particular, presents a lucrative opportunity. With a mobile money penetration rate of 89%, compared to Togo’s 42.4%, the market in Benin is already well-established, thanks to the interoperability between key players like MTN, Moov, and Celtis, the state-run operator.
Expanding into Benin would not only boost Gozem Money’s regional presence but also enable it to tap into a more mature market where mobile money is already widely accepted for a variety of transactions, including commercial activities. As Gozem continues to build its fintech offerings, expanding into these neighboring countries will be a crucial part of its growth strategy.
Addressing Untapped Potential: Mobile Money in Togo
While Togo’s mobile money market has experienced impressive growth, it remains underdeveloped in key areas such as commercial transactions and widespread adoption. Currently, only 42.4% of the country’s 8 million residents use mobile money services. This presents a significant opportunity for Gozem Money to fill the gap and encourage further adoption, particularly by offering a range of services that go beyond basic money transfers and bill payments.
Gozem Money aims to bring mobile payments closer to the commercial level, enabling small businesses, vendors, and even e-commerce platforms to integrate mobile money as a preferred payment method. By positioning itself as a versatile platform for both consumers and merchants, Gozem can play a vital role in promoting financial inclusion and driving economic modernization across Togo.
Gozem Money’s Vision for the Future
Gozem’s launch of its mobile money service is not just about expanding its product offering—it’s about creating a holistic ecosystem that meets the evolving needs of its users across various sectors. As it moves forward, Gozem Money will focus on delivering secure, convenient, and innovative financial services, setting the stage for long-term success in the region.
The company’s fintech ambitions are part of a broader vision to become a leading tech-driven service provider in West Africa, with plans to integrate more features and expand into additional markets in the coming years. With the backing of strategic partners like NSIA Bank and its recent acquisition of Moneex, Gozem is well-positioned to navigate the complexities of the West African fintech space and make a meaningful impact on the region’s economy.
