The impact of regulation on the spread and growth of mobile money in selected sub-Saharan African countries

Abstract

Several countries in sub-Saharan Africa (SSA) have implemented regulatory reforms in the mobile money sector since 2011. Therefore, this paper investigates the impact of mobile money regulation on mobile money spread and growth in 16 selected SSA countries from 2011 to 2018, a period allowing for an analysis of foundational regulatory effects before the confounding influence of recent global disruptions or major technological shifts. The baseline results from the estimated panel data fixed effects model indicate that more enabling mobile money regulatory frameworks promote mobile money spread and growth in the selected SSA countries. Further analysis shows that authorisation and know your customer requirements encourage mobile money spread, while consumer protection and enabling infrastructure and investment environment promote mobile money growth. Thus, policymakers and regulators, in their efforts to design regulations that protect financial system integrity and stability, should concurrently ensure mobile money regulation is more enabling to promote its widespread adoption and address the needs of the underserved.