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

Published online by Cambridge University Press:  14 September 2012

Richard Duncombe
Richard Duncombe*
Affiliation:
Institute for Development Policy and Management, The University of Manchester, Oxford Road, Manchester M13 9PL, United Kingdom
*
Email: richard.duncombe@manchester.ac.uk
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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.

Type
Research Article
Information
The Journal of Modern African Studies , Volume 50 , Issue 3 , September 2012 , pp. 369 - 395
Copyright
Copyright © Cambridge University Press 2012

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