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Is Mobile Money Changing Rural Africa? Evidence from a Field Experiment

Author

Listed:
  • Cátia Batista

    (Nova School of Business and Economics, CReAM, IZA, JPAL, and NOVAFRICA)

  • Pedro C. Vicente

    (Nova School of Business and Economics, BREAD, CEPR, and NOVAFRICA)

Abstract

Rural areas in sub-Saharan Africa are typically underserved by financial services. Mobile money brings a substantial reduction in the transaction costs of remittances. We follow the introduction of mobile money for the first time in rural villages of Mozambique using a randomized field experiment. We find that mobile money increased migration out of these villages, where we observe lower agricultural activity and investment. At the same time, remittances received and welfare of rural households increased, particularly when facing georeferenced village-level floods and household-level idiosyncratic shocks. Our work suggests that mobile money can accelerate urbanization and structural change in sub-Saharan Africa.

Suggested Citation

  • Cátia Batista & Pedro C. Vicente, 2025. "Is Mobile Money Changing Rural Africa? Evidence from a Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 107(3), pages 835-844, May.
    • Handle: RePEc:tpr:restat:v:107:y:2025:i:3:p:835-844
    DOI: 10.1162/rest_a_01333
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    Cited by:

    1. Riley, Emma & Shonchoy, Abu S. & Osei, Robert Darko, 2025. "Incentives and endorsement for technology adoption: Evidence from mobile banking in Ghana," Journal of Development Economics, Elsevier, vol. 176(C).
    2. Erika Deserranno & Firman Witoelar & Gianmarco León-Ciliotta, 2021. "When Transparency Fails: Financial Incentives for Local Banking Agents in Indonesia," Working Papers 1233, Barcelona School of Economics.
    3. Mensah,Justice Tei, 2023. "Mobile Phones and Local Economic Development : A Global Evidence," Policy Research Working Paper Series 10526, The World Bank.
    4. Mebratu Negera & Tekie Alemu & Fitsum Hagos & Amare Haileslassie, 2025. "Does financial inclusion enhance farmers' resilience to climate change? Evidence from rural Ethiopia," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 3008-3022, April.
    5. Ayi Gavriel Ayayi & Hamitande Dout & Pagnamam Yekpa & Mawuli Kodjovi Couchoro, 2025. "Impact of Mobile Money on Resilience to Health Shocks in Sub-Saharan Africa: Evidence from Togo," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 10934-10964, June.
    6. Catia Batista & Sandra Sequeira & Pedro C. Vicente, 2022. "Closing the Gender Profit Gap?," Management Science, INFORMS, vol. 68(12), pages 8553-8567, December.
    7. Grzybowski, Lukasz & Lindlacher, Valentin & Mothobi, Onkokame, 2023. "Mobile money and financial inclusion in Sub-Saharan Africa," Information Economics and Policy, Elsevier, vol. 65(C).
    8. Catia Batista & Pedro C. Vicente, 2020. "Adopting Mobile Money: Evidence from an Experiment in Rural Africa," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 594-598, May.
    9. Aparajita Agarwal & Valentina A. Assenova, 2024. "Mobile Money as a Stepping Stone to Financial Inclusion: How Digital Multisided Platforms Fill Institutional Voids," Organization Science, INFORMS, vol. 35(3), pages 769-787, May.
    10. Catia Batista & Julia Seither, 2019. "Aspirations, expectations, identities: behavioral constraints of micro-entrepreneurs," NOVAFRICA Working Paper Series wp1906, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    11. Giné, Xavier & Goldberg, Jessica, 2023. "Experience in financial decision-making: Field evidence from Malawi," Journal of Development Economics, Elsevier, vol. 161(C).
    12. Doan,Miki Khanh & Hill,Ruth & Hallegatte,Stephane & Corral Rodas,Paul Andres & Brunckhorst,Ben James & Nguyen,Minh & Freije-Rodriguez,Samuel & Naikal,Esther G., 2023. "Counting People Exposed to, Vulnerable to, or at High Risk From Climate Shocks — A Methodology," Policy Research Working Paper Series 10619, The World Bank.
    13. M. Agurto & H. Djebbari & S. Sarangi & B. Silupú & C. Trivelli & J. Torres, 2025. "The Provision of Information on Mobile Banking by Local Ambassadors: Experimental Evidence From Peru," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(5), pages 1055-1069, July.
    14. Melain Modeste Senou & Denis Acclassato Houensou, 2024. "From expanding financial services to tackling poverty in West African Economic and Monetary Union: The accelerating role of mobile money," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1707-1737, April.
    15. Grzybowski Lukasz & Lindlacher Valentin & Mothobi Onkokame, 2023. "Interoperability Between Mobile Money Agents and Choice of Network Operators: The Case of Tanzania," Review of Network Economics, De Gruyter, vol. 22(1), pages 27-52, June.
    16. Patricio S. Dalton & Haki Pamuk & Ravindra Ramrattan & Burak Uras & Daan van Soest, 2024. "Electronic Payment Technology and Business Finance: A Randomized, Controlled Trial with Mobile Money," Management Science, INFORMS, vol. 70(4), pages 2590-2625, April.
    17. Arouna Kouandou, 2026. "The role of mobile banking in coping with food insecurity in Burkina Faso," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 18(2), pages 559-580, April.
    18. Cátia Batista & Marcel Fafchamps & Pedro C Vicente, 2022. "Keep It Simple: A Field Experiment on Information Sharing among Strangers [Changing Saving and Investment Behavior: The Impact of Financial Literacy Training and Reminders on Micro-Businesses]," The World Bank Economic Review, World Bank, vol. 36(4), pages 857-888.
    19. Arouna Kouandou & Sophie Legras, 2025. "Welfare Impacts of Mobile Banking Use in Rural Africa: Gender Disaggregated Evidence from Eight Sub-Saharan African Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 37(4), pages 812-838, August.
    20. Ben Brunckhorst & Ruth Hill & Ghazala Mansuri & Trang Nguyen & Miki Doan, 2023. "Climate and Equity," World Bank Publications - Reports 39952, The World Bank Group.
    21. Michael Barczay & Mr. Shafik Hebous & Fayçal Sawadogo & Jean-François Wen, 2025. "Taxing Mobile Money: Theory and Evidence," IMF Working Papers 2025/255, International Monetary Fund.
    22. Parlasca, Martin & Johnen, Constantin & Qaim, Matin, 2021. "Use of Mobile Financial Services Among Farmers in Africa: Insights from Kenya," 2021 Conference, August 17-31, 2021, Virtual 315863, International Association of Agricultural Economists.
    23. Emily Breza & Martin Kanz & Leora F. Klapper, 2020. "Learning to Navigate a New Financial Technology: Evidence from Payroll Accounts," NBER Working Papers 28249, National Bureau of Economic Research, Inc.
    24. Catia Batista & Lara Bohnet & Jules Gazeaud & Julia Seither, 2025. "From destination to origin: experimental evidence on the international spillovers of migrant integration," Nova SBE Working Paper Series wp2503, Universidade Nova de Lisboa, Nova School of Business and Economics.

    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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