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E-money, Financial Inclusion and Mobile Money Tax in Sub-Saharan African Mobile Networks

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  • Tarna Silue

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

E-money and financial inclusion are both development challenges for developing countries, the former contributing to improving tax mobilization and the latter to achieving particular sustainable development objectives. However, one of the central financial inclusion and e-money services providers is mobile network operators using mobile money. The latter is subject to numerous taxes that can affect their operations. The paper studies the incidence of the new mobile money excise duty in the mobile networks sector on the adoption of electronic money and the advancement of financial inclusion through digital services in sub-Saharan countries. It appears that the introduction of the tax leads to an increase in user fees, which has a positive impact on demand for cash, and it is only in the presence of the latter that MM reduces the demand for cash for studied countries. In addition, the study assumes that tax administrations in these countries would raise more revenue without this excise because the tax is not conducive to the full adoption of e-money.

Suggested Citation

  • Tarna Silue, 2021. "E-money, Financial Inclusion and Mobile Money Tax in Sub-Saharan African Mobile Networks," CERDI Working papers hal-03281898, HAL.
    • Handle: RePEc:hal:cdiwps:hal-03281898
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-03281898
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    References listed on IDEAS

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    Cited by:

    1. Favourate Y. Mpofu, 2022. "Industry 4.0 in Financial Services: Mobile Money Taxes, Revenue Mobilisation, Financial Inclusion, and the Realisation of Sustainable Development Goals (SDGs) in Africa," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    2. Akua Agyeiwaa-Afrane & Kofi A. A-O. Agyei-Henaku & Charlotte Badu-Prah & Francis Srofenyoh & Ferguson K. Gidiglo & James K. A. Amezi & Justice G. Djokoto, 2023. "Drivers of Ghanaians’ approval of the electronic levy," SN Business & Economics, Springer, vol. 3(1), pages 1-20, January.

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    Keywords

    Financial inclusion; Mobile money; Tax incidence;
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