An investigation into the impact of mobile money transactions on economic growth in Zambia

Kaliye Kawina and Mubanga Mpundu

Development Policy Review, 2026, vol. 44, issue 2

Abstract: Motivation The study investigates the impact of mobile money on Zambia's economic growth, noting its widespread use in sub‐Saharan Africa. It seeks to clarify whether mobile money directly influences gross domestic product (GDP) or whether other factors are more significant. Purpose This study investigates how mobile money payments affect Zambia's GDP growth from 2012 to 2024, including key macroeconomic variables for a comprehensive view. Approach and Methods It uses a quantitative time‐series approach with annual data from 2012 to 2024 (N = 13 observations) sourced from the World Bank World Development Indicators (World Bank, n.d.) and Bank of Zambia Payment Systems Statistics. Analysis was conducted using Stata software employing Prais–Winsten regression to address autocorrelation in the small‐N dataset. Findings The findings show that mobile money payments, despite increasing use, had no impact on GDP growth. Direct credits supported growth by aiding investment and business, whereas direct debits hurt growth, probably due to lower disposable income or money leaving the economy. Inflation hampers growth by reducing purchasing power and investment. The labour‐force participation rate also negatively affects GDP, indicating challenges in Zambia's labour market. These results, while robust to diagnostic tests, are interpreted cautiously due to the implications for statistical power of the small sample size. Policy Implications The findings emphasize the need for policies to promote mobile money payments, improve credit systems, and curb inflation. For mobile money to foster growth, its expansion requires institutional, regulatory, and infrastructure development.

Date: 2026
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