Mobile Money for Financial Inclusion in Rwanda : Application of Endogenous Switching Regression Model

As in many developing countries, mobile money was justified as a significant tool of financial inclusion in Sub-Saharan Africa. This study attempts to identify the factors motivating Rwandans to use the mobile money using the FinScope 2016 survey data collected from a random sample of 12,480 individuals. Considering that adopting and using mobile money is optional, the maximum likelihood method was used to estimate an endogenous switching regression model to account for sample selection and endogeneity. The results put forward the role of socioeconomic factors, wealth and productive assets on saving promotion. Mobile money contributes significantly on saving promotion; it is thus a factor to boost the financial inclusion and a leverage point of socioeconomic development through the enhancement of inclusive growth. Based on the research findings, it is recommended that exploring the mechanisms and strategies to put in place a cashless economic system would improve the socioeconomic transformation in Rwanda. [enter Abstract Body]