DFSP country Think Tank Report

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Browsing DFSP country Think Tank Report by Author "Ndayikeza, Michel Armel"

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    Determinants of Mobile Money Adoption and Use in Burundi
    (African Economic Research Consortium, 2024-08-15) Ndoricimpa, Arcade; Nyamweru, Jean Claude; Ndayikeza, Michel Armel
    This study examines the factors determining mobile money adoption and use in Burundi. Heckman selection model is applied on a recent household dataset (Integrated household living conditions survey in Burundi, EICV 2019-2020). The estimation results point to different socio-economic factors that drive the adoption and use of mobile money in Burundi. Age category, education level, being a member of savings and loans associations, and household size are the factors determining the likelihood of mobile money adoption in Burundi, while the probability of mobile money use in Burundi seems to be influenced only by education level, place of residence, and the well-being level. Considering this study’s findings, the Government of Burundi should implement policies to reduce the gender gap and duality urban-rural. Efforts should also be put on education investment to reduce illiteracy. The Government of Burundi should also continue implementing policies to raise the well-being of the population and social self-sustained groups, and initiatives to increase incomes of the population especially in rural areas should be encouraged. In addition, concerted effort from different stakeholders, mobile network operators and regulators, is also needed. Making payment systems flexible by increasing mobile agents in remote areas would also most likely lead to increased mobile money adoption. We hope that the findings from this study will inform public authorities to take necessary measures to increase mobile money adoption and use in Burundi.
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    Mobile Money Usage: A Comparative Analysis of Burundi with other East African Countries
    (African Economic Research Consortium, 2024-08-15) Ndayikeza, Michel Armel; Nyamweru, Jean Claude; Ndoricimpa, Arcade
    This study examines the use of mobile money services in Burundi and compares it with other East African countries to identify areas for improvement. The focus is on the supply side, with the aim of offering practical recommendations for policy makers to enhance the usage of mobile money. We use secondary data to compare mobile money usage and transaction fees across East African Community (EAC) countries. Additionally, the analysis draws on semi-structured interviews with key informants from the National Agency of Regulation and Control of Telecommunications, the Central Bank of Burundi, the Ministry of Finance, and other institutions crucial to the development of mobile money. The information collected during these interviews is organized into four thematic areas: institutional environment and regulation, interoperability, government's role, and the impact on smallholder farmers. The findings indicate that mobile money usage in Burundi is relatively low, standing at 11%, in comparison to other EAC countries. Although higher than South Sudan's usage rate of 1%, it falls far behind Tanzania (45%), Uganda (54%), and Kenya (69%). The cost of sending US$ 10 varies between 0.2% and 10.8% across EAC countries, with the lowest fees observed in Kenya and the highest in Tanzania. Interviews with experts highlighted the need for supply-side actors to recognize the country's low mobile money usage rate and fully realize the potential benefits of this technology. The study contributes to the limited literature on mobile money and digital finance in Burundi and offers some policy recommendations to address the issue.