The Effect of Mobile Money on Financial Inclusion in Mozambique
Date
2025
Authors
Ponguane, Sérgio
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
Financial inclusion is widely considered an important tool to ensure sustainable economic growth and alleviate poverty and inequality. However, financial inclusion in Mozambique is low compared to other African countries. The revolution of ICT and financial technologies, including mobile money is a breakthrough in financial inclusion. This study aimed to analyse the effect of mobile money on financial inclusion in Mozambique using the 2021 Global Findex data. Treatment Effect Model and Propensity Score Matching techniques were used to address the research questions. Findings suggest that mobile money positively affects savings and borrowing. However, the determinants of mobile money adoption and barriers are similar to those of conventional banking. This means that mobile money is more likely to benefit individuals who are already financially included. Therefore, inclusive financial strategies will require that access points expansion is combined with initiatives that improve household income and financial literacy.