The integration of mobile money within Africa’s financial landscape has profoundly reshaped access to banking services, catalysing economic participation in sectors previously hindered by financial exclusion. Among the industries significantly transformed by this digital financial revolution is the fashion sector, an industry inherently characterised by fluid financial requirements, a reliance on cross-border trade, and an ever-present need for flexible capital management. Mobile money serves as an efficient, cost-effective, and highly scalable financial infrastructure that not only facilitates transactions but fundamentally redefines the operational structures of African fashion enterprises. This analysis explores the impact of mobile money on the African fashion industry, examining its role in fostering financial inclusion, enhancing operational agility, and integrating local businesses into the global marketplace, while also addressing regulatory and security challenges.

Recent developments within the African fashion industry have illuminated a persistent and deeply entrenched structural dilemma. The intersection of outdated production infrastructure, a pronounced deficit in technical expertise, and the volatility of economic conditions has rendered large-scale local manufacturing an increasingly prohibitive endeavour. While African designers continue to garner international acclaim for their creative ingenuity, the capacity to translate this artistic innovation into efficient and scalable production remains significantly constrained by a constellation of systemic impediments. These constraints not only elevate production costs but also obstruct the broader industrialisation of the fashion sector, limiting its ability to compete on a global scale.

In a keynote address delivered in October 2024 at the Creative Africa Nexus Weekend Summit in Algiers, Nigeria’s Minister of Art, Culture, and Creative Economy, Barrister Hannatu Musa Musawa, revealed that nearly 90% of the Dutch wax consumed across Africa is sourced from foreign manufacturers, leading to an estimated $3 billion in annual capital outflows. This heavy reliance on imports raises fundamental concerns about economic sovereignty, industrial stagnation, and missed opportunities for employment creation. While Dutch wax is a fabric deeply embedded in African identity, its production remains largely controlled by manufacturers in China, India, and the Netherlands. The question that emerges is why Africa, with its rich tradition of textile production, has failed to establish a competitive and self-sufficient Dutch wax industry.

Market share serves as a fundamental indicator of an industry's global standing, shaping strategic decisions that influence long-term growth trajectories. For Africa’s fashion sector, comprehending its positioning within the global market is not merely an academic exercise but a critical step toward scaling operations, attracting investment, and overcoming entrenched structural inefficiencies.

McKinsey & Company estimates the global fashion industry at $1.7 trillion, reflecting the vast scale and economic significance of the sector. Meanwhile, data from the African Development Bank values Africa’s fashion industry at $31 billion, highlighting a stark disparity in market representation. Recognising the need for a clearer assessment of Africa’s contribution to global fashion, we at the African Fashion Development Initiative conducted a market share calculation,

The Pan-African Payments and Settlement System (PAPSS) was launched in January 2022 and is designed to enhance African trade by facilitating instant and secure cross-border transactions in local currencies. The Pan-African Payment and Settlement System (PAPSS) is a financial market infrastructure established by the African Export-Import Bank (Afreximbank) to facilitate cross-border transactions within Africa. This system eliminates the need for payments to be processed through correspondent banks outside the continent, ensuring more efficient and cost-effective transactions. PAPSS enables instant or near-instant fund transfers between businesses and individuals in different African countries.

For fashion entrepreneurs looking to build a brand that attracts funding, watching these shows can offer a practical crash course in financial literacy, valuation strategies, and business negotiations.

Investing in local fashion businesses offers an immense opportunity to bolster African economies by decreasing dependence on imports and facilitating greater revenue circulation within the continent.