THE PROLIFIC USE of mobile telephones in developing countries has given birth to financial innovations such as mobile money. As a result, the use of mobile money has expanded the grid of financial services to include previously unbanked populations in Africa. This development is a harbinger for increased financial intermediation and positive spill-overs in terms of credit growth to entrepreneurs and faster economic growth. Based on monthly data for the period 2013m7 – 2015m12, this study employs time series techniques to unpack the proliferation of mobile money and its attendant impact on financial inclusion in Lesotho. The findings reveal existence of long-run steady state relationship between financial inclusion and mobile money in Lesotho and that mobile money Granger causes financial inclusion both in the short-run and long-run in Lesotho. Therefore, financial inclusion policies should be directed towards leveling the playing ground for mobile money to flourish to create a more financially inclusive society in Lesotho.
Thursday, 11 June 2020 13:53
The Financial Inclusion Conundrum in Lesotho Is Mobile Money the Missing Piece in the PuzzleWritten by Lira Sekantsi
Published in December 2016
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