The Interplay Between Mobile Money and Employment on Economic Growth in Sub- Saharan Africa- Moderated by Financial Stability

Abstract

The study aims to: (1) determine the effect of mobile money usage on economic growth; (2) assess the impact of employment levels on growth; (3) evaluate the interaction between mobile money and employment in enhancing economic outcomes; and (4) investigate how financial stability moderates the relationship between mobile money and economic growth. To achieve this, the study employs a quantitative research design, the study employs panel data from 38 SSA countries spanning 2000 to 2023. Key variables include a Mobile Money Index, Economic Growth Index, Employment Ratio, and a Financial Stability Index. The Generalized Method of Moments (GMM) estimation technique is applied to address potential endogeneity and ensure robust inference in a dynamic panel data context.  Results reveal that mobile money alone does not significantly drive economic growth and may have a marginally negative effect. However, when coupled with higher employment levels and supported by financial stability, its contribution to economic growth becomes significantly positive. Additionally, education, credit access, and inflation also influence growth outcomes, reinforcing the importance of broader economic policy integration. Originality/value – Policy interventions should adopt a holistic approach—combining mobile money development with job creation and macro-financial stability measures. Emphasis on financial regulation, inclusive employment strategies, and digital financial literacy will be crucial to maximizing the developmental impact of mobile money in SSA.