Why SMS Remains the Backbone of Digital Africa
When M-Pesa revolutionized mobile payments in Kenya nearly two decades ago, it relied on a technology that predates the smartphone era: the Short Message Service (SMS). Today, as artificial intelligence dominates tech headlines and 5G networks expand across African cities, SMS continues to handle billions of critical transactions across the continent.
The numbers tell a striking story. Mobile users in Africa maintain an SMS open rate of 98 percent, a metric that no email campaign or app notification can match. In Nigeria alone, mobile money operators processed transactions worth 71.5 trillion naira between January and December 2024, representing a 53 percent increase from the previous year. Much of this infrastructure still depends on SMS for transaction confirmations and authentication.
The Persistence of Basic Technology
The enduring relevance of SMS stems from a fundamental reality of African markets, as mobile penetration far exceeds smartphone adoption. South Africa recorded 124 million cellular mobile connections in early 2025, though some connections only include services such as voice and SMS. This distinction matters. While urban centers embrace app-based services, vast populations rely on feature phones that cannot run WhatsApp, Telegram, or banking applications.
M-Pesa allows users to make transfers, payments, and purchases simply through SMS messages without an Internet connection or a bank card. This offline capability proves essential in regions where network coverage remains unreliable or data costs are prohibitive. A recent survey found that 80 percent of African smartphone users still send text messages, placing SMS on par with voice calls in daily usage patterns.
Banking on Text Messages
Financial institutions have built their security protocols around SMS, particularly for two-factor authentication. SMS delivers real-time banking notifications with 98 percent open rates, regardless of internet connectivity. When a customer in Lagos attempts to transfer funds, the verification code arrives via text message within seconds, requiring no data connection or app download.
This simplicity carries security trade-offs. Security codes sent via SMS are vulnerable to hacking, with bad actors able to intercept messages and gain access to accounts. Both the FBI and cybersecurity agencies have warned about SMS-based authentication weaknesses. Yet banks continue to rely on the technology because alternatives require infrastructure that millions of customers lack.
The contrast between developed and emerging markets becomes apparent in adoption patterns. While Western financial institutions migrate toward authenticator apps and biometric systems, most banking institutions in South Africa have adopted the Two-Factor-Authentication method, which requires a username, password, and a code from the bank via SMS. This reflects the practical constraints of serving populations where smartphone ownership cannot be assumed.
The Marketing Channel That Refuses to Die
Beyond finance, SMS has proven remarkably durable as a marketing tool. Response rates for SMS reach 45 percent, far higher than email’s 6 percent. Brands targeting African consumers recognize that text messages cut through the noise of crowded inboxes and overwhelming app notifications.
72 percent of people have made a purchase after receiving a text from a brand, according to recent consumer research. The direct nature of SMS creates urgency that other channels struggle to match. When a retailer sends a flash sale notification via text, customers tend to act quickly, knowing the message likely contains time-sensitive information.
The global SMS advertising market reflects this staying power. Ad spending in the SMS Advertising market worldwide is forecasted to reach 809.05 million dollars in 2025, with projections showing continued growth through 2030. While this pales beside social media advertising budgets, the stability of SMS spending indicates brands still find value in the channel.
East Africa’s Messaging Evolution
Recent data from East Africa reveals how SMS coexists with newer technologies rather than being replaced by them. Messaging volumes in the region increased 4.85 percent, with WhatsApp usage up 10.3 percent and SMS slightly growing 0.8 percent. The modest SMS growth, set against explosive WhatsApp adoption, suggests the technology serves specific functions that alternatives cannot fully replace.
USSD, a related text-based protocol, has seen even stronger growth. USSD rose 15.3 percent in East Africa, driven by financial services that require session-based interactions. These technologies thrive because they work on any mobile device and function without internet connectivity, addressing the realities of African infrastructure rather than assuming universal broadband access.
Technical Advantages in Limited Infrastructure
The technical characteristics that made SMS successful in the 1990s remain relevant in emerging markets. Text messages require minimal bandwidth, arrive quickly even on congested networks, and cost a fraction of data-based communications. For businesses serving customers across income levels, SMS ensures messages reach everyone, not just those with data plans and modern devices.
GeoPoll research conducted across Ghana, Kenya, Nigeria, and Uganda found that sending text messages ranked among the top three phone uses at 80 percent, tied with voice calls. The survey covered affluent, younger demographics, typically quick to adopt new technologies. If SMS remains prevalent among this group, its dominance among broader populations becomes clear.
The integration of SMS with customer relationship management systems also keeps the technology relevant. Modern CRM platforms can trigger automated text messages for appointment reminders, order confirmations, and payment notifications. This automation makes SMS a natural fit for businesses that need reliable, scalable communication without requiring customers to install apps or check email.
The Path Forward
SMS will not disappear from African digital ecosystems anytime soon. As George Muhia of Infobip noted, the region’s messaging evolution centers on inclusion, with channels like SMS offering a gateway for those without smartphones or consistent data access. The technology succeeds precisely because it makes no assumptions about users’ devices, income levels, or technical sophistication.
The future likely involves SMS operating alongside richer communication channels rather than being replaced. Banks may adopt app-based authentication for smartphone users while maintaining SMS options for others. Retailers might use WhatsApp for customer service while sending promotional texts. This layered approach recognizes that African markets contain multiple realities simultaneously: urban professionals with flagship devices and rural customers with basic phones, all requiring functional digital services.
What began as a workaround for limited infrastructure has become foundational to Africa’s digital economy. Mobile money platforms processing trillions in transactions, banks securing millions of accounts, and businesses reaching diverse customer bases all depend on a technology developed before the internet went mainstream. The question is not whether SMS will remain relevant in 2026, but rather how long it will take for alternatives to match its combination of reliability, reach, and simplicity.
