Effects of mobile money usage on rural consumers’ livelihoods in Zimbabwe

Abstract

Mobile financial services have posed as a potential remedy to the financial inclusion challenge for disadvantaged communities. This study demonstrates how mobile money service usage impacts on the livelihoods of rural consumers in Zimbabwe. Out of a population of all rural households using mobile money. The study is based on a survey of 351 household heads selected from the Kwekwe rural district, using a multi-stage random sampling approach. We employ structural equation modelling technique in two stages, where the first step entails the estimation of the measurement model through confirmatory factor analysis and the second step involve estimation of the structural model by examining the structural relations as hypothesised in the model. Both the measurement model and proposed structural model fit the data satisfactorily, thus providing a basis to conclude on the study hypotheses. Most of the relationships in the structural model are found to be statistically significant at 95% confidence interval. Overall, the study concludes that mobile money has potential positive impacts on the rural livelihoods as demonstrated by the positive effects of the factors in the structural model. The study provides evidence on how mobile financial services impact on rural livelihoods. Therefore, policymakers can craft policies (financial inclusion) that will promote and improve access and delivery of financial services to the rural people especially with the savings and provision of credit through mobile money.