Structural Change in Rural West Africa: Does Mobile Banking Have a Role to Play?

Arouna Kouandou and Sophie Legras

Journal of Development Studies, 2026, vol. 62, issue 8, 1454-1474

Abstract: Non-farm entrepreneurship plays a vital role in mitigating climate shocks and strengthening household resilience in rural sub-Saharan Africa, yet liquidity constraints often hinder business creation. This study examines whether mobile banking promotes rural non-farm entrepreneurship in seven WAEMU countries—Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. Using panel data from the 2018/19 and 2021/22 waves of the Enquête Harmonisée sur les Conditions de Vie des Ménages (EHCVM), we address potential endogeneity in mobile banking adoption through correlated random effects models, entropy balancing, and instrumental variable estimation. Across all specifications, mobile banking users are significantly more likely to operate non-farm enterprises. Mechanism analysis shows that mobile banking enhances financial inclusion by increasing access to formal financial institutions and participation in informal savings groups, such as ROSCAs. These findings underscore the role of mobile banking in promoting rural structural transformation and improving economic resilience in WAEMU countries.

Date: 2026
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DOI: 10.1080/00220388.2025.2577319

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