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Maize Productivity and Household Welfare Impacts of Mobile Money Usage in Tanzania

Author

Listed:
  • Happiness Kilombele

    (Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Dar es Salaam 34441, Tanzania)

  • Shiferaw Feleke

    (Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Dar es Salaam 34441, Tanzania)

  • Tahirou Abdoulaye

    (Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Bamako 320, Mali)

  • Steven Cole

    (Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Dar es Salaam 34441, Tanzania)

  • Haruna Sekabira

    (Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Kigali 1269, Rwanda)

  • Victor Manyong

    (Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Dar es Salaam 34441, Tanzania)

Abstract

This study examined the determinants and impacts of mobile money (MM) usage on maize productivity and poverty likelihood (i.e., the probability of a household falling below the international poverty line at USD 1.9 per capita per day) in the Mbeya Region, Tanzania. The analysis was conducted using the endogenous switching regression (ESR) model on data from a random sample of 1310 households selected from seven districts in the region. Results of the ESR estimation show that MM usage is strongly and positively associated with the education level of the household head, asset ownership, credit access, input access, and social networks. MM usage is also significantly associated with increased maize productivity and a reduced poverty likelihood. Farmers who chose to use MM services increased their maize productivity by about 124 kg/acre and reduced their poverty likelihood by nearly 25 percentage points, as measured by the progress out of poverty index. These findings call for a targeted approach to reaching and supporting MM usage among households with constrained access to formal financial services to increase maize productivity and reduce poverty likelihood.

Suggested Citation

  • Happiness Kilombele & Shiferaw Feleke & Tahirou Abdoulaye & Steven Cole & Haruna Sekabira & Victor Manyong, 2023. "Maize Productivity and Household Welfare Impacts of Mobile Money Usage in Tanzania," IJFS, MDPI, vol. 11(1), pages 1-20, January.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:27-:d:1053041
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    References listed on IDEAS

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    Cited by:

    1. KARERWA Carine, 2023. "Effect of Financial Inclusion on Agricultural Farm Performance in Rwanda: “ A case study of COMSS cooperative," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(12), pages 641-688, December.
    2. Olga Mapanje & Selma Karuaihe & Charles Machethe & Mao Amis, 2023. "Financing Sustainable Agriculture in Sub-Saharan Africa: A Review of the Role of Financial Technologies," Sustainability, MDPI, vol. 15(5), pages 1-20, March.
    3. Romanus Osabohien & Amar Hisham Jaaffar & Armand Fréjuis Akpa & Mihajlo Jakovljevic, 2024. "Mobile money, medical cost anxiety and welfare of individuals within the reproductive age in Malaysia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.

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