Does mobile banking matter for the adoption of modern agricultural technology? Evidence from Côte d'Ivoire

Arouna Kouandou and Rawaa Laajimi

Development Policy Review, 2025, vol. 43, issue 2

Abstract: Motivation The adoption of yield‐enhancing agricultural inputs can improve rural livelihoods. Lack of savings is widely believed to be one of the main barriers to the adoption of agricultural technology in sub‐Saharan Africa. That may be changing, as the spread of mobile phones in many African countries has facilitated access to new financial technologies, such as mobile money and mobile banking. Purpose How does access to mobile banking affect the adoption of yield‐enhancing inputs in Côte d'Ivoire? In particular, how does mobile banking affect the uptake of inorganic fertilizers and phytosanitary products to protect crops against weeds, pests, and diseases? Approach and methods Drawing on data from the Harmonized Survey on Household Living Conditions (Enquête Harmonisée sur les Conditions de Vie des Ménages, EHCVM 2018–2019) for Côte d'Ivoire, we use regression analysis to estimate the factors affecting adoption. The decision to have a mobile bank account may be endogenous, so we use instrumental variables to address potential bias. Findings Having a mobile bank account is associated with a 14% greater likelihood of investing in modern agricultural inputs. The impact is particularly high for investments in chemical or inorganic fertilizers, where having a mobile account makes adoption 30% more likely. Policy implications Many governments in sub‐Saharan Africa rely heavily on costly subsidies to encourage the adoption of improved farm technologies. Access to mobile banking offers a cheaper way to promote the adoption of technology. The potential of mobile banking to serve as an effective savings tool and transform the lives of smallholder farmers will depend on government policy. While the government of Côte d'Ivoire has made greater efforts than its neighbours to increase the availability of mobile banking technology, much remains to be done.

Date: 2025
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