Analysis of Mobile Money and Sustainable Development in Africa

Abstract

The objective of this study is to examine the impact of mobile money innovations on sustainable development in Africa. Applying panel fixed effect, system GMM, and dynamic threshold estimators on a panel data of 34 selected African countries within a period of 2011 and 2019, the study reveals some interesting findings. First, the authors show that mobile money promotes sustainable development. Second, there is a nonlinear relationship between mobile money and sustainable development in Africa. Finally, the turning point at which mobile money innovations become detrimental to sustainable development is within the range of 18.31% and 38.57%. This implies that although mobile money enhances development, adequate supervision and monitoring would guarantee the sustainability of the beneficial impacts in the African economy. Overall, mobile money facilitates efficient allocations of financial resources and may enhance the possibility of reducing poverty in Africa.