Does mobile money enable women-owned businesses to invest? Firm-level evidence from Sub-Saharan Africa

Asif Islam and Silvia Muzi

Small Business Economics, 2022, vol. 59, issue 3, No 21, 1245-1271

Abstract: Abstract This study connects two important findings in Sub-Saharan Africa. First, digital technologies such as mobile money have become widespread and have increased investment by businesses, especially in East Africa. Second, women-owned businesses in the region significantly lag behind their male counterparts in capital investments. Using data for 16 Sub-Saharan African economies, the study finds a positive relationship between mobile money use and investment by women-owned firms; the relationship is statistically insignificant for men-owned firms. This relationship is stronger for women-owned small and medium-sized enterprises. Potential channels are explored. Women-owned firms that use mobile money to transact with suppliers are more likely to invest. Mobile money use is also associated with a greater provision of customer credit and generally greater demand for more credit by women-owned firms. Such patterns are not observed for men-owned firms.

Keywords: Gender; Mobile money; Financial development; Investment; Firms; Africa; J16; E22; G2; L25; O16 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11187-021-00562-w

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