THE IMPACT OF DIGITAL PAYMENT SYSTEMS ON FINANCIAL INCLUSION AND ECONOMIC GROWTH IN SUB-SAHARAN AFRICA
Micah Ezekiel Elton Mike, Saidu Ibrahim Halidu and Bello Sambo Sanusi
Volume 5 Issue 1
Abstract
This study investigates the impact of digital payment systems on financial inclusion and economic growth in SubSaharan Africa, emphasizing the transformative role of mobile money services. Sub-Saharan Africa has witnessed significant progress in financial inclusion due to the widespread adoption of mobile payment platforms such as MPesa, enabling millions to access formal financial systems. The research highlights how mobile payments have contributed to economic growth by enhancing access to financial services, fostering entrepreneurship, and improving efficiency in key sectors like agriculture and government payments. Despite these advances, challenges such as poor digital infrastructure, financial illiteracy, and regulatory barriers persist, limiting the broader adoption of digital payment systems. Case studies from countries like Kenya, Tanzania, and Uganda reveal a strong correlation between mobile money adoption and economic development, with notable contributions to GDP and job creation. The study concludes with policy recommendations, advocating for improved infrastructure, regulatory reforms, and financial literacy programs to maximize the potential of digital payment systems. These measures aim to enhance financial inclusion and drive sustainable economic growth across the region. Keywords: Digital Payment Systems, Financial Inclusion, Mobile Money, Sub-Saharan Africa, Economic Growth, Mobile Payments.
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