Profile of Mobile Money and Financial Inclusion among Micro-Entrepreneurs in The Central Business District of Lusaka

Abstract

The aim of this paper is to profile the state of mobile money financial inclusion/exclusion among micro-entrepreneurs (traders) in the Central Business District. This paper uses a case study approach and is based on mono method quantitative approachAn assessment of mobile line ownership as a gateway to one aspect of financial inclusion shows that majority of micro entrepreneurs n = (88.4%) were Airtel subscribers and a minority n = 93 (31.6%) were Zamtel subscribers The number of lines in possession varied in the sample with n = 38 (12.9%) maintaining three lines being in the minority group and those maintaining two lines n = 161 (54.8%) were in the majority. There was no statistically significant difference in the number of lines in possession by gender as p was > 0.05 (0.397). Age as well did not show any significant difference as p was > 0.05 (0.682). Micro entrepreneurs were able to use mobile money services once in a week and almost every day. Use was influenced by the facts that was it less expensive to deal with the mobile money service provider, customer trust of the mobile money financial services provider was more than other service sources and the micro entrepreneurs had the money a priori to do business. The paper’s call to action is for the government  to institute holistic financial frameworks that would cover the micro level by ensuring that mobile money service providers make their products more accessible, user friendly, quality and continue to be less expensive for the usage of  not only micro entrepreneurs. There is need to expand the use of mobile money financial services technology to deliver financial services to enhance inclusion. This may require adding more features on mobile ups and firms owning mobile money financial services to consider franchising. We propose context specific products that could be appreciated by people in the Progress out of Poverty Index 1 and 2 categories that includes micro traders and this would require evidence based financial solutions. Hence more research is being proposed in this area.

Keywords: Profile, Mobile Money, Financial Inclusion, Micro Entrepreneurs, Central Business District

DOI: 10.7176/JESD/14-2-08

Publication date: January 31^st 2023