Mobile Phone Ownership: Bridging Financial Access for the Unbanked

Saidi Bizoza and Gildas Irakoze

Working Papers from African Economic Research Consortium

Abstract: The effectiveness of financial inclusion as an instrument to address income inequalities and social inclusion is no longer questionable, given its contribution to the SDGs agenda (SDGs 1, 2, 3, 9, and 10). However, in Burundi, financial inclusion remains low with major causes being social exclusion and physical distance. Half of the adult population lives more than 8 km from the nearest financial institution, and 44% need more than 60 minutes to get there. Financial services are concentrated in Bujumbura, with 37.5% of bank branches located there, exacerbating accessibility challenges for those in rural areas. Moreover, only 30% of the total banks and microfinance accounts are held by women. The latter disparities have obvious negative consequences in terms of household welfare. Many efforts to address the issue of financial inclusion failed as they relied on classical banking approaches, themselves depending on costly and unaffordable infrastructure in the context of Burundi. Mobile money (MM) has demonstrated significant potential in advancing financial inclusion, particularly in underserved areas such as rural communities and low-income households. Globally, it is celebrated as a transformative tool for bridging the financial inclusion gap and addressing disparities, including the gender gap. However, in Burundi, the adoption and impact of mobile money remain relatively underexplored. This necessitates a critical assessment to identify effective strategies tailored to Burundi's unique context. Drawing direct inferences from other countries without localized evaluation risks policy misalignment and potential failure.

Date: 2025
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Note: African Economic Research Consortium
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