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Mobile money and financial inclusion in Sub-Saharan Africa

Author

Listed:
  • Lukasz Grzybowski

    (University of Warsaw, Faculty of Economic Sciences)

  • Valentin Lindlacher

    (TU Dresden)

  • Onkokame Mothobi

    (University of Witwatersrand)

Abstract

In this paper, we utilize survey data collected in 2017 from 12,735 individuals across nine Sub-Saharan African countries. We merge the survey data with geographic information related to the proximity of mobile network towers and banking facilities, based on the geo-locations of the respondents. Our estimation approach comprises a two-stage model. In the first stage, consumers make choices between adopting a feature phone or a smartphone. In the second stage, they make decisions regarding the use of mobile money services. Our findings reveal that network coverage significantly influences the adoption of mobile phones. Moreover, we observe that mobile money services are more favored by younger and relatively wealthier individuals for sending money, while older individuals and those with lower incomes tend to use mobile wallets for receiving money. Consequently, mobile money services facilitate younger migrant workers residing in areas with better infrastructure in providing support to their older relatives in less developed regions.

Suggested Citation

  • Lukasz Grzybowski & Valentin Lindlacher & Onkokame Mothobi, 2024. "Mobile money and financial inclusion in Sub-Saharan Africa," Working Papers 2024-20, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2024-20
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    Cited by:

    1. Aurazo, Jose & Gasmi, Farid, 2024. "Digital payment systems in emerging economies: Lessons from Kenya, India, Brazil, and Peru," Information Economics and Policy, Elsevier, vol. 69(C).
    2. Samuel Tawiah Baidoo & Agnes Gyamfuaa Okyere & Charles Mensah Asiedu & Jennifer Asare-Lah & Richmond Akankpaboka Atuga & Richmond Odjidja & Rita Acquah, 2025. "Promoting business start-ups and expansion among women in Ghana: the role of mobile money technology," SN Business & Economics, Springer, vol. 5(1), pages 1-24, January.
    3. AlSuwaidi, Reem Ahmed & Mertzanis, Charilaos, 2024. "Financial literacy and FinTech market growth around the world," International Review of Financial Analysis, Elsevier, vol. 95(PB).

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    More about this item

    Keywords

    Mobile money; Sub-Saharan Africa; Financial inclusion;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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