Abstract
Mobile money activities have greatly expanded in the African continent and are viewed as drivers for financial inclusion and economic development. Even though the researchers consider mobile money activities pivotal to financial inclusion, poverty alleviation, and inclusive development, there are views to the contrary arguing that the contribution to economic development is minimal, especially in rural African communities. These communities are underserved and underdeveloped and still face access, affordability, connectivity, and infrastructural challenges. The relationship between mobile money, financial inclusion, and social inclusion is an under-researched area; therefore, this chapter contributes to the literature addressing this research void and extends it to include how these three variables influence sustainable development and sustainable development goals. The findings were mixed. While the contributionĀ of mobile money services to financial and social inclusion as well as sustainable developmentĀ is indisputable, concerns about the objective of wealth maximization overshadowing the financial and social inclusion efforts were equally persuasive. Very little is done to address challenges such as inequalities, infrastructural deficiencies, lack of connectivity, and literacy challenges.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abubakar, N. H., & Kah, M. M. (2021). Mobile phones and social inclusion of women in Africa: A Nigerian perspective. The African Journal of Information Systems, 13(2), 6.
Ahmad, A. H., Green, C., & Jiang, F. (2020). Mobile money, financial inclusion and development: A review with reference to African experience. Journal of Economic Surveys, 34(4), 753ā792.
Aker, J. C. & Mbiti, I. M. (2010). Mobile phones and economic development in Africa, Center for Global Development Working Paper No. 211.
Ali, G., Ally Dida, M., & Elikana Sam, A. (2020). Evaluation of key security issues associated with mobile money systems in Uganda. Information, 11(6), 309.
Aron, J. (2018). Mobile money and the economy: A review of the evidence. The World Bank Research Observer, 33(2), 135ā188.
Aziz, A., & Naima, U. (2021). Rethinking digital financial inclusion: Evidence from Bangladesh. Technology in Society, 64, 101509.
Baganzi, R., & Lau, A. K. (2017). Examining trust and risk in mobile money acceptance in Uganda. Sustainability, 9(12), 2233.
Bateman, M., Duvendack, M., & Loubere, N. (2019). Is fin-tech the new panacea for poverty alleviation and local development? Contesting Suri and Jackās M-Pesa findings published in Science. Review of African Political Economy, 46(161), 480ā495.
Batista, C., & Vicente, P. C. (2021). Is mobile money changing rural Africa?: Evidence from a field experiment. Centre for Research and Analysis of Migration, Department of Economics, University College London.
Baruti, M. H., James, S., & Chusi, T. (2022). The potential innovative strategies of using mobile money systems for enhancing financial inclusion in Tanzania. EPRA International Journal of Economic and Business Review (JEBR), 10(3), 1ā10.
Bongomin, G. O. C., Munene, J. C., Ntayi, J. M., & Malinga, C. A. (2018). Exploring the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda. International Journal of Social Economics, 45, 00.
Cardo, M. (2014). Social inclusion and policymaking in South Africa: A conceptual overview. The Journal of the Helen Suzman Foundation, 73, 7ā15.
Chamboko, R. (2022). On the role of gender and age in the use of Digital Financial Services in Zimbabwe. International Journal of Financial Studies, 10(3), 82.
Chitimira, H., & Torerai, E. (2021). The Nexusbetween mobile money regulation, innovative technology and the promotion of financial inclusion in Zimbabwe. Potchefstroom Electronic Law Journal (PELJ), 24(1), 1ā33.
Clarke, C., & Tooker, L. (2018). Social finance meets financial innovation: Contemporary experiments in payments, money and debt. Theory, Culture & Society, 35(3), 3ā11.
Clifford, K. (2020). The causes and consequences of mobile money taxation An examination of mobile money transaction taxes in Sub-Saharan Africa.
Dasuki, S., & Effah, J. (2022). Mobile phone use for social inclusion: The case of internally displaced people in Nigeria. Information Technology for Development, 28(3), 532ā557.
Dobra, A. (2011). Microfinance: Champion in poverty alleviation and failure in female empowerment.
Donovan, K. (2012). Mobile money for financial inclusion. Information and Communications for Development, 61(1), 61ā73.
Eilu, E., & Auma, T. O. (2017). Mobile money services as a Panacea to financial inclusion in sub-Saharan Africa: The case of Uganda. International Journal of Technology Diffusion (IJTD), 8(4), 77ā88.
Fiasorgbor, D. A. F., & Caroline, T. (2017). Mobile money use in Ghana: An assessment of its relevance in the financial inclusion of rural communities. Advances in Social Sciences Research Journal, 4(7), 192ā102.
Gas, S. (2017). Mobile money, cashless society and financial inclusion: case study on somalia and kenya. Cashless Society and Financial Inclusion: Case Study on Somalia and Kenya (July 15, 2017).
Ghosh, S. (2022a). Political empowerment of women and financial inclusion: Is there a link? Social Sciences & Humanities Open, 5(1), 100267.
Ghosh, S. (2022b). Gender and financial inclusion: Does technology make a difference? Gender, Technology and Development, 1ā19.
Gichuki, C. N., & Mulu-Mutuku, M. (2018, March). Determinants of awareness and adoption of mobile money technologies: Evidence from women micro entrepreneurs in Kenya. In Womenās Studies International Forum (Vol. 67, pp. 18-22). Pergamon.
Global System for Mobile Communications Association (GSMA). (2018). State of the Industry Report on Mobile Money 2018.
Grohmann, A., KlĆ¼hs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? Cross country evidence. World Development, 111, 84ā96.
GSMA. (2021). Mobile Money Can drive the financial inclusion of persons with disability in Ghana: Mobile Money for development.
GSMA. (2022a). Mobile Money agents: Sustainability in a digital era.
GSMA. (2022b). State of the industry report on Mobile Money 2022.
Hamdan, J. S., Lehmann-Uschner, K., & Menkhoff, L. (2022). Mobile money, financial inclusion, and unmet opportunities: Evidence from Uganda. The Journal of Development Studies, 58(4), 671ā691.
Kim, K. (2022). Assessing the impact of mobile money on improving the financial inclusion of Nairobi women. Journal of Gender Studies, 31(3), 306ā322.
LlewellynāJones, L. (2016). Mobile money: Part of the African financial inclusion solution?. Economic Affairs, 36(2), 212ā216.
Mader, P. (2016). Questioning three fundamental assumptions in financial inclusion (No. IDS Evidence Report; 176). IDS.
Mader, P., Duvendack, M., & Macdonald, K. (2022). Fintech and tax in Sub-Saharan Africa: Taxation versus financial inclusion. Journal of Cultural Economy, 15(4), 488ā507.
Maurer, B., Nelms, T. C., & Rea, S. C. (2018). āBridges to cashā: Channelling agency in mobile money. In Linguistic and material intimacies of cell phones (pp. 69ā98). Routledge.
Mavodza, E. (2019). Mobile money and the human economy. Africa Development/Afrique Et DĆ©veloppement, 44(3), 107ā130.
McCaffrey, M. (2022). Does mobile money improve financial inclusion?. Impact capital for development. Unlocking public finance for the poor. UNCDF.
Mhlanga, D. (2022). COVID-19 and digital financial inclusion: Policies and innovation that can accelerate financial inclusion in a post-COVID world through Fintech. African Journal of Development Studies (formerly AFFRIKA Journal of Politics, Economics and Society), 2022(si2), 79ā100.
Miles, S., Khairuddin, K. F., & McCracken, W. (2018). Deaf learnersā experiences in Malaysian schools: access, equality and communication. Social Inclusion, 6(2), 46ā55.
Mndolwa, F. D., & Alhassan, A. L. (2020). Gender disparities in financial inclusion: Insights from Tanzania. African Development Review, 32(4), 578ā590.
Mohamed, A. A., & Nor, M. I. (2021). Measuring the contribution of mobile money services to financial inclusion: The case of Hormuudās Evc-Plus in Somalia. International Research Journal of Finance and Economics, 2(182), 39.
Mothobi, O., & Grzybowski, L. (2017). Infrastructure deficiencies and adoption of mobile money in Sub-Saharan Africa. Information Economics and Policy, 40, 71ā79.
Mpofu, F. Y. S. (2021). Informal sector taxation and enforcement in African countries: How plausible and achievable are the motives behind? A critical literature review. Open Economics, 4(1), 72ā97.
Mpofu, F. Y. (2022a). Industry 4.0 in financial services: Mobile money taxes, revenue mobilisation, financial inclusion, and the realisation of Sustainable Development Goals (SDGs) in Africa. Sustainability, 14(14), 8667.
Mpofu, F. Y. (2022b). Green taxes in Africa: Opportunities and challenges for environmental protection, sustainability, and the attainment of sustainable development goals. Sustainability, 14(16), 10239.
Mpofu, F. Y., & Mhlanga, D. (2022). Digital financial inclusion, digital financial services tax and financial inclusion in the fourth industrial revolution era in Africa. Economies, 10(8), 184.
Munoz, L., Mascagni, G., Prichard, W., & Santoro, F. (2022). Should governments tax digital financial services? A research agenda to understand sector-specific taxes on DFS. Institute of Development Studies.
Murendo, C., & Wollni, M. (2016). Mobile money and household food security in Uganda (No. 858ā2016-60328).
Myeni, S., Makate, M., & Mahonye, N. (2020). Does mobile money promote financial inclusion in Eswatini? International Journal of Social Economics, 47(6), 693ā709.
Napier, M., Melamed, C., Taylor, G., & Jaeggi, T. (2013). Promoting womenās financial inclusion: A toolkit. DFID.
Natalie, S. (2020). Digital finance inclusion and the mobile money āSocialā enterprise. Historical Social Research/Historische sozialforschung, 45(3), 74ā94.
Nandru, P., & Rentala, S. (2020). Demand-side analysis of measuring financial inclusion: Impact on socio-economic status of primitive tribal groups (PTGs) in India. International Journal of Development Issues, 19(1), 1ā24.
Nandru, P., Chendragiri, M., & Velayutham, A. (2021). Examining the influence of financial inclusion on financial well-being of marginalized street vendors: An empirical evidence from India. International Journal of Social Economics, 48(8), 1139ā1158.
Nihinlola, R. M. (2020). Evaluating the relationship between financial inclusion, social inclusion and multidimensional poverty reduction (Doctoral dissertation, Walden University).
Ngono, J. F. L. (2020). Inclusion FinanciĆØre Et InĆ©galitĆ©s De Revenus En Afrique Subsaharienne: Le RĆ“le JouĆ© Par Le Mobile Money (Financial Inclusion and Income Inequality in Sub-Saharan Africa: The Role Play by Mobile Money).
Nyoka, C. (2019). Education level and income disparities: Implications for financial inclusion through mobile money adoption in South Africa. Comparative Economic Research. Central and Eastern Europe, 22(4), 129ā142.
Ojo, T. A. (2022a). Digital financial inclusion for women in the fourth industrial revolution: A key towards achieving sustainable development goal 5. Africa Review, 14(1), 98ā123.
Ojo, T. A. (2022b). Financial inclusion and women empowerment in BRICS countries: Perspectives on India and South Africa. In The political economy of Intra-BRICS Cooperation (pp. 175ā203). Palgrave Macmillan.
Omar, M. A., & Inaba, K. (2020). Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis. Journal of Economic Structures, 9(1), 1ā25.
Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329ā340.
Ozili, P. K. (2020). Social inclusion and financial inclusion: International evidence. International Journal of Development Issues, 19(2), 169ā186.
Ozili, P. K. (2021). Has financial inclusion made the financial sector riskier? Journal of Financial Regulation and Compliance, MPRA Paper 105529, 1ā25.
Peprah, J. A., Oteng, C., & Sebu, J. (2020). Mobile money, output and welfare among smallholder farmers in Ghana. SAGE Open, 10(2), 2158244020931114.
PiƱera, I. C. A. Y. (2021). Financial inclusion: transforming Mozambique into a mobile money success-case (Doctoral dissertation).
Pushkareva, N. (2021). Taxing times for development: Tax and digital financial services in Sub-Saharan Africa. Financing for Development, 1(3), 33ā64.
Riley, E. (2018). Mobile money and risk sharing against village shocks. Journal of Development Economics, 135, 43ā58.
Riquelme, H. E., & Rios, R. E. (2010). The moderating effect of gender in the adoption of mobile banking. International Journal of Bank Marketing, 28(5), 328ā341.
Rogan, M. (2019). Tax Justice and the Informal Economy: A Review of the debates.
Rukundo, S. (2017, Sept). Taxation of the telecommunications sector: A focus on policy issues and considerations in taxation of mobile money in Uganda. In Africa Tax Research Network 2017 Congress at Antananarivo, Madagascar (pp. 4ā6).
Sharma, V. (2015). Mobile money vs mobile banking. https://vinodsblog.com/2015/12/02/mobile-money-vs-mobile-banking/
Sayid, O., Echchabi, A., & Echchabi, H. A. A. A. (2012). Investigating mobile money acceptance in Somalia: An empirical study. Pakistan Journal of Commerce and Social Sciences (PJCSS), 6(2), 269ā281.
Sebele-Mpofu, F. Y., & Moyo, N. (2021). An evil to be extinguished or a resource to be harnessed-informal sector in developing countries: A case of Zimbabwe. Journal of Economics and Behavioral Studies, 13(3 (J)), 53ā72.
Sekantsi, L. P., & Motelle, S. I. (2016). The financial inclusion conundrum in Lesotho: Is mobile money the missing piece in the puzzle? Journal of Financial Research, 8(3), 138ā192.
Senyo, P. K., Karanasios, S., Gozman, D., & Baba, M. (2022). FinTech ecosystem practices shaping financial inclusion: The case of mobile money in Ghana. European Journal of Information Systems, 31(1), 112ā127.
Serbeh, R., Adjei, P. O. W., & Forkuor, D. (2022). Financial inclusion of rural households in the mobile money era: Insights from Ghana. Development in Practice, 32(1), 16ā28.
Shipalana, P. (2019). Digitising financial services: a tool for financial inclusion in South Africa?.
Silver, H. (2007). The process of social exclusion: the dynamics of an evolving concept. Chronic Poverty Research Centre Working Paper, (95).
Silver, H., & Miller, S. M. (2003). Social exclusion. Indicators, 2(2), 5ā21.
Silver, H. (2015). The contexts of social inclusion. Available at SSRN 2641272.
Suri, T. (2017). Mobile money. Annual Review of Economics, 9, 497ā520.
Suri, T., & Jack, W. (2016). The long-run poverty and gender impacts of mobile money. Science, 354(6317), 1288ā1292.
Svensson, J., & Wamala Larsson, C. (2016). Situated empowerment: Mobile phones practices among market women in Kampala. Mobile Media & Communication, 4(2), 205ā220.
Thatho, T. (2020). Mobile money and financial inclusion: Evidence from Lesotho (Masterās thesis, Faculty of Commerce).
Triki, T., & Faye, I. (2013). Financial Inclusion in Africa. African Development Bank. Available online: https://www.rfilc.org/wp-content/uploads/2020/08/Financial_Inclusion_in_Africa.pdf
Trauth, E. (2017). A research agenda for social inclusion in information systems. ACM SIGMIS Database: the Database for Advances in Information Systems, 48(2), 9ā20.
Tonuchi, J. E. (2020). How to improve mobile money service usage and adoption by nigerians in the era of covid-19. International Journal of Finance, Insurance and Risk Management, 10(3), 31ā52.
Torerai, E. (2022). A comparative statutory analysis of the use and regulation of mobile money to promote financial inclusion for the poor in Zimbabwe (Doctoral dissertation, North-West University (South Africa).).
Wieser, C., Bruhn, M., Kinzinger, J. P., Ruckteschler, C. S., & Heitmann, S. (2019). The impact of mobile money on poor rural households: Experimental evidence from Uganda. World Bank Policy Research Working Paper, (8913).
Wilson, C., & Secker, J. (2015). Validation of the social inclusion scale with students. Social Inclusion, 3(4), 52ā62.
World Bank. (2018). The Global Findex Database 2017. https://globalfindex.worldbank.org/
Yakubu, A. (2021). Effect of mobile money on financial inclusion among rural communities in the Asikuma-Odoben-Brakwa district of the central region of Ghana (Doctoral dissertation, University of Cape Coast).
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
Ā© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Mpofu, F.Y. (2023). Mobile Money Services and Sustainable Development Effect in Africa. In: Mhlanga, D., Ndhlovu, E. (eds) The Fourth Industrial Revolution in Africa. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-031-28686-5_8
Download citation
DOI: https://doi.org/10.1007/978-3-031-28686-5_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-28685-8
Online ISBN: 978-3-031-28686-5
eBook Packages: Economics and FinanceEconomics and Finance (R0)