Money In Africa Research Articles

The impact of poverty on base of the pyramid operations: Evidence from mobile money in Africa

AbstractBusiness models designed to serve those at the “base of the pyramid” are an effective means to create employment and improve quality of life. However, the effect that poverty has on the performance of such businesses is not well‐understood. We address this gap through the context of “mobile money,” an electronic currency ecosystem designed as a secure, reliable way for those at the base of the pyramid to store and transfer money. Using data from Kenya and Uganda, and instrumenting for potentially endogenous regressors, we examine the effect poverty has on operational decisions (inventory and price transparency) and market dimensions (network density and demand). Our results suggest that mobile money, as a base of the pyramid business model, is well‐positioned to serve those in poverty up to a point, with demand increasing in poverty when the concentration of poverty is sufficiently low. However, our results indicate that, where poverty is more pervasive, inventory costs increase in poverty while per agent demand and agent network density both decrease. In short, the business case for mobile money degenerates in regions where it, arguably, is needed the most. We conclude with thoughts on how to buttress mobile money's business case in these high poverty settings.

How financial inclusion is evolving to make payments easier for all

This paper looks at how financial inclusion impacts marginalised communities, focusing on Africa and Asia predominantly, and how the evolution of digital financial services has helped advance the progression of financial inclusion. The paper considers the lessons learned from previous financial inclusion initiatives and provides examples of where some of the risks associated with these initiatives have been mitigated through the use of Big Data to access underserved rural communities or overcome obstacles such as gender bias when designing financial products and services. The paper will also look at options for future activity that could help to overcome some of the challenges created by financial exclusion. The paper will look at specific case studies from mobile money in Africa to female empowerment initiatives globally, including how the COVID-19 pandemic exacerbated existing problems for vulnerable communities but also acted as a catalyst for new and appropriately responsive activity. From working in collaboration, to improved regulation, the need for increased equality across access to digital financial services and the relevant literacy training required, this paper seeks to review what the previous landscape of financial inclusion technology looked like and how it can evolve.

Global variations in barriers to exercise for individuals with intellectual and developmental disability

BackgroundIntellectual and developmental disabilities (IDD) comprise lifelong limitations of intellectual, physical, or emotional development. Individuals with IDD face a mean reduction in lifespan of 12·7 years, a 5-times increase in the rate of type 2 diabetes, and a 2-times increase in the rate of cardiovascular disease versus the general public. Exercise can alleviate morbidity and mortality faced by individuals with IDD; however, the barriers to exercise for this population are not well elucidated. We aimed to understand the global variations in barriers to exercise for individuals with IDD. MethodsThis retrospective review examined data collected by the Special Olympics Healthy Athletes Program across 193 countries, separated into seven regions, between February, 2007, and January, 2020. We included 5135 participants (aged 0–80 years) with IDD who reported having no regular activity programme. The primary outcome was which of nine barriers to exercise participants reported, totaling 6368 responses. χ2 tests were used to test significance, at p<0·0001. Participants and guardians provided written informed consent and the study was approved by the author's institutional review board. Findings5135 participants were enrolled, with a mean age of 22·9 years (SD 12·9); 1998 (38·9%) were female. 672 participants lived in Africa, 985 in Asia Pacific, 269 in east Asia, 1135 in Europe and Eurasia, 859 in Latin America, 83 in the Middle East and north Africa, and 1132 in North America. The primary outcome had 6368 responses. For each region except the Middle East and north Africa (p=0·002), there was statistically significant variation in the frequency of reported barriers (all p<0·0001). In east Asia, Europe and Eurasia, and North America, the most frequently cited barrier to exercise was no interest (48·3%, 44·6%, and 56·4% respectively; all p<0·0001). By contrast, no exercise facilities was the most frequently cited barrier in Africa, Asia Pacific, and Latin America (25·1%, 74·9%, and 26·0% respectively; all p<0·0001). For all nine barriers there was regional variation in the frequency each barrier was cited (all p<0·0001). No interest was most often cited as a barrier in North America (56·4%), no exercise person to help in east Asia (11·8%), no equipment or clothes in Africa (5·2%), no person to exercise with in east Asia (9·2%), no transportation in Africa (22·1%), no money in Africa (23·5%), no exercise facilities in Asia Pacific (74·9%), and not safe in Latin America (3·6%). InterpretationBarriers to exercise for individuals with IDD vary depending on the region of the world. Although there are limitations to self-reported data and retrospective review, to our knowledge this is the largest study examining barriers to exercise for individuals with IDD to date. This analysis could help to inform health policy and target interventions to the needs of specific IDD communities to mitigate the effects of their disabilities on chronic conditions and mortality. FundingNone.

A Moral Contribution to the Discourse: Pastor and Money in Africa

A Moral Contribution to the Discourse: Pastor and Money in Africa

5 - A Human Economy and Mobile Money in Africa: Lessons from South Africa

5 - A Human Economy and Mobile Money in Africa: Lessons from South Africa

Consumer acceptance and continuance of mobile money

This research provides empirical results on context-based factors that determine the use of mobile money in Africa by employing a unique secondary data which provides a new perspective on the technology acceptance model (TAM) application. The hypothesised research model tests the context-based constructs to determine how these constructs affect peoples' intentions and attitudes towards the continued use of mobile money. Exploring these constructs provides an understanding of the insights into the marketing campaigns and growth of mobile money providers. The empirical results suggest that the availability of electricity is an important factor for mobile phone functionality and ongoing use of mobile money in the long run. There is also a correlation between regulations that are perceived to be enabling and the intentions of individuals to continue using mobile money. However, there is a negative correlation between rural dwellings and the intentions of individuals to adopt the use of mobile money which finds its basis in the inadequate mobile networks and national grid systems in rural areas.

Asymmetric effects of exchange rate changes on the demand for money in Africa

ABSTRACTIn order to account for currency substitution, the exchange rate is included in the demand for money. More recent studies have demonstrated that exchange rate changes could have asymmetric effects on the demand for money or domestic currency. In this paper, we consider the experiences of 18 African countries and show that in most countries, indeed exchange rate changes have short-run asymmetric effects on the demand for money. However, short-run effects translate to long-run asymmetric effects only in a limited number of African countries.

A Time and a Place: Non-Profit Engagement in the Creation of Markets and Industry Emergence

This paper sheds light on how non-profit organizations can aid economic development by supporting the emergence of markets and industries in developing country contexts. We qualitatively examine archival data on the development of two industries: grain-storage metal silos in Central America during the late 1900s where nonprofits “seeded” new firms, and mobile money in Africa during the early 2000s where non-profits “transplanted” an established firm into Africa. Our comparison of these cases reveals two key findings. We find that either non-profits or firms can accomplish some activities, while other activities are undertaken only by non-profits. We also find that both nonprofits and firms circumvent institutional voids–that is they devise solutions that allow the focal industry to function while not necessarily providing a solution for the economy as a whole. We highlight opportunities for integrating institutional theory, organizational economics, and theories of industry and technology evolution to better understand how nonprofits and firms can work together to develop industries in underserved regions that have traditionally lacked strong institutions.

Mobile Money in Sub-Saharan Africa and its Implications

Africa is currently rising as a major area where mobile money is spreading. According to the 2015 global index report by the World Bank, the 13 countries whose penetration rate for mobile money accounts was over 10% were all located in sub-Saharan Africa. The example of Africa’s mobile money diffusion is assessed as meaningful creation of new services from local African demand.The mobile money of Africa was known as first serviced in South Africa in the year 2000, and its full-fledged expansion is recognized as subsequent to the great success of Kenyan mobile communication operator Safari.com due to M-Pesa in 2007. Mobile money is currently supplied centering in the East Africa region including Kenya, Tanzania, Somalia, and Sudan, and also displays a high penetration rate in Cote d'Ivoire and South Africa.The background to the fast spread of mobile money in Africa includes low financial access, quickly diffusing mobile communications infrastructure, and the quick response of corporations to local demand. The proportion of the adult population who can use orthodox financial institutions excluding mobile finance in sub-Saharan Africa is just 24%, but the diffusion of mobile communications is 70%. Multinational corporations like Vodafone paid attention to the informal financial dealings between individuals in Africa and released a new service that could replace them.The mobile money system, M-Pesa, which began in Kenya, is a typical example of success and pioneering, which has had a ripple effect on not only countries nearby but also other sub-Saharan countries, although there are examples of mobile money diffusion failure like Nigeria. In the case of Nigeria, a cash-oriented economic structure and the excessive regulations of the government are pointed out as the biggest causes for the failure of diffusion.The diffusion of mobile money in Africa display differing aspects according to region and country. Mobile money was a success in the East Africa region including Kenya because of the complex functioning of several factors including the efficient institutions of each government, the peculiarity of the financial environment, and consumer demand.Local market analysis must precede to revitalize FinTech domestically and enter overseas markets. As you may see from the case of Africa, the diffusion of mobile money, unlike a top-down transmission of technology, tends to begin with local demand, so a close analysis on the demand and institutions of the local market must be preceded.

Africa's Money in Africa

AbstractWorkers' remittance and compensation of employees received in Sub‐Sahara Africa (SSA) increased from USD 1.398 billion in 1980 to USD 4.834 billion in 2000 and soared to USD 21.101 billion in 2010. The impact of remittance on recipient economy requires further empirical investigation as there has not been consensus on whether remittance induces “financial prodigality” or investment in Africa. Differing from extant studies, this study employed rule of law, regulatory quality and government effectiveness as indicators of institutional quality. This is with a view to exploring how institutional quality and financial depth interact with remittance to influence investment in 44 African countries (1995‐2010). The major finding from the study, inter alia, is that institutional quality and financial depth play complimentary role in influencing remittance for investment in Africa. This study concludes that the impact of Africa's money in Africa will be enhanced in the presence of reliable institutional quality and viable financial sector. Thus, the side effect of “financial prodigality” that might be associated with remittance can be ameliorated.

Economic Uncertainty, Monetary Uncertainty, and the Demand for Money in Africa

Due to economic and monetary uncertainty individuals are expected to allocate their portfolio towards holding money and alternative forms of assets. Following the literature on money demand, we test the impact of economic and monetary uncertainty on the demand for money in 21 African nations. By relying upon quarterly data, GARCH-based measures of uncertainty, and bounds testing approach we find that the impact of both measures are mostly transitory in many of the African countries and do not last into long run. Furthermore, by including the two uncertainty measures we found that the demand for money in every African nation is stable. JEL Classification: E41

Liberalisation, policy reform and the demand for money in Africa

Liberalisation, policy reform and the demand for money in Africa