NOVAFRICA Publication in The Review of Economics and Statistics: “Is Mobile Money Changing Rural Africa? Evidence from a Field Experiment”

“Is Mobile Money Changing Rural Africa? Evidence from a Field Experiment”

By NOVAFRICA Scientific Directors, Professors Cátia Batista and Pedro C. Vicente.

This paper evaluates the introduction of mobile money in rural Mozambique through a randomized field experiment, providing causal evidence on how it increased out migration from rural villages by reducing remittance transaction costs.

Key Findings:

• Mobile money led to increased out migration from rural villages.

• Agricultural activity and investment declined in areas where mobile money became available.

• Remittances to rural households increased, particularly in response to georeferenced floods and idiosyncratic household shocks.

Conclusion:

Mobile money accelerates urbanization and structural change in sub-Saharan Africa by lowering the costs of remittances and enabling households to better manage risks.

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