An evidence-based framework for assessing the potential of mobile finance in sub-Saharan Africa

An evidence-based framework for assessing the potential of mobile finance in sub-Saharan Africa

Author: 
Duncombe, Richard
Publisher: 
Cambridge University Press
Date published: 
2012
Record type: 
Region: 
Journal Title: 
Journal of Modern African Studies
Source: 
The Journal of Modern African Studies, Vol 50, No. 3, September 2012, pp. 369-395
Abstract: 

This paper provides a framework-based approach for assessing the potential for mobile finance (m-finance) services to achieve greater financial inclusion in sub-Saharan Africa. The conceptual approach synthesises market and user perspectives, and constructs an evidence-based exploratory framework based on analysis of a single country, Uganda. Case evidence is used to inform four lifecycle stages for m-finance, moving from design to access, usage, and outcomes associated with differentiated m-finance applications. Based on analysis of published sources, findings from Uganda suggest that early adoption of m-finance has favoured those already financially included and market-driven solutions for the financially excluded are limited. Simple market modelling is found to be an insufficient basis on which to assess potential amongst the unbanked majority. The paper argues that the perception, behaviour and capability of users, and forms of user appropriation, should be a paramount concern, and potential for m-finance should be considered within a deeper understanding of a specified financial services context and within a defined market, regulatory and policy environment.

Language: 

CITATION: Duncombe, Richard. An evidence-based framework for assessing the potential of mobile finance in sub-Saharan Africa . : Cambridge University Press , 2012. The Journal of Modern African Studies, Vol 50, No. 3, September 2012, pp. 369-395 - Available at: http://library.au.int/evidence-based-framework-assessing-potential-mobile-finance-sub-saharan-africa-4