Published in PLOS One on 2026-08-07, this study is presented as an attributed evidence briefing. The excerpts below are the original researchers’ words, reproduced under their Creative Commons Attribution licence. Health Signal has selected the abstract and, where needed, opening background paragraphs; the complete methods, results, limitations and references remain in the linked paper.
Original authors: Lwanga Elizabeth Nanziri, Martin Limbikani Mwale, Tony Mwenda Kamninga, Richard Wamalwa Wanzala
Source: PLOS One • DOI 10.1371/journal.pone.0343349
Read the complete primary study ↗ · Creative Commons Attribution licence
From the researchers
Abstract
Mobile money has emerged as a low-cost financial instrument with strong potential to improve livelihoods, particularly in economies with weak formal financial systems. This paper examines the welfare effects on women and youth in Mozambique, a fragile, post-conflict country exposed to climate shocks. Using 900 household observations from the 2019 FinScope Survey and an instrumental variable approach to address selection bias, the study provides robust evidence on welfare outcomes. Results show that mobile money improves household welfare, with effects driven by active usage rather than mere account ownership. Specifically, mobile money reduces reliance on own food production, indicating improved market integration and liquidity, while enhancing consumption smoothing and investment in human capital. Welfare gains are transmitted through remittances and financial inclusion, strengthening household resilience. Women benefit through increased financial autonomy, consistent with evidence that digital financial services improve women’s entrepreneurship, financial decision-making, and economic empowerment [33], while youth rely on remittances to stabilize consumption. However, the instrumental variable approach relies on the assumption that network availability affects welfare only through mobile money adoption, a claim that cannot be fully tested and should be interpreted with caution. These findings suggest that policies should prioritize active usage and ecosystem integration over access alone.
1. Introduction
Mobile money adoption in Africa has expanded rapidly, outpacing other regions and significantly advancing financial inclusion [1,2]. By facilitating fast, secure, and low-cost transactions, it allows households to save, make payments, and build credit histories [3–5]. Importantly, these services have been particularly transformative for marginalized groups such as women and youth, who face persistent barriers to formal financial systems [6,7]. Recent GSMA reports further show that Sub-Saharan Africa remains the global leader in mobile money adoption, with rapid growth in transaction volumes, account activity, and ecosystem development, reinforcing mobile money’s role as a driver of inclusive finance [8,9]. Evidence from countries including Ghana, Burkina Faso, and Cameroon links mobile money to improved economic empowerment and welfare outcomes [10–17]. More broadly, studies from Kenya, Tanzania, and Uganda consistently demonstrate that mobile money enhances household resilience through improved consumption smoothing, poverty reduction, savings mobilisation, and access to essential services. Nevertheless, much of this evidence has been generated in relatively stable institutional environments, raising important questions about whether similar welfare effects can be expected in countries experiencing persistent fragility, conflict, and climate-related shocks.
However, most existing studies focus on relatively stable economies such as Kenya, Ghana, and Uganda [18], leaving the welfare implications of mobile money in fragile and shock-prone settings underexplored [19–21]. This represents an important gap because the mechanisms through which digital financial services influence household welfare are likely to differ across institutional contexts. In stable economies, mobile money primarily facilitates financial transactions and market participation, whereas in fragile settings it may additionally function as a critical resilience mechanism by supporting emergency remittances, humanitarian assistance, and government-to-person (G2P) transfers when conventional financial institutions are disrupted [3,22,23]. Evidence from humanitarian settings further demonstrates that harmonized digital data systems and mobile-enabled cash transfer programmes improve the efficiency, coordination, and targeting of emergency assistance, thereby strengthening household resilience during crises [24]. Mozambique therefore, provides a critical case. As one of Africa’s most fragile states, the country has experienced overlapping crises – including armed conflict in Cabo Delgado, recurrent tropical cyclones, widespread displacement, and persistent poverty – that have weakened livelihoods, disrupted financial systems, and exacerbated socioeconomic vulnerabilities, particularly among women and youth [25,26,27–29]. Evidence from other fragile contexts, such as South Sudan, further suggests that conflict weakens financial infrastructure and constrains financial inclusion, highlighting the importance of digital financial services where conventional banking systems are disrupted [30]. These conditions make Mozambique a distinctive and policy-relevant setting for understanding whether mobile money can enhance household welfare where formal financial infrastructure is constrained and exposure to economic shocks is high.
Reading this evidence
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This briefing makes the source accessible within the wider financing & policy desk. It does not assess an individual patient or certify a product. When considering relevance to another health system, examine the original authors’ account of context and limitations, then seek local implementation evidence. The related reporting below provides other studies to read alongside this one; it is a topic connection, rather than a claim that their results are directly comparable.
© 2026 Lwanga Elizabeth Nanziri, Martin Limbikani Mwale, Tony Mwenda Kamninga, Richard Wamalwa Wanzala. Excerpts reproduced under CC BY. Selection, formatting and contextual notes by Health Signal. The researchers are the authors of the source study, not members of Health Signal’s staff.
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