Effects of mobile money agent business on socioeconomic welfare. a case study of Kalaki sub-county, Uganda

Abstract

Mobile money services have become a transformative force in developing nations, offering essential financial services through mobile phones. A recent study in Kalaki Sub-county investigated these services' impact on socioeconomic welfare. The research, encompassing 50 respondents from various parishes, unveiled critical insights. Higher income levels correlated positively with increased socioeconomic welfare. Moreover, education levels, employment opportunities, and technological development also significantly influenced the welfare of individuals. Surprisingly, localities showed no significant impact on socioeconomic welfare, indicating a nuanced relationship. Mobile money agents in Kalaki Sub-county faced challenges such as network issues, fraud, high charges, and intense competition. Agents recommended solutions: improved network connectivity, regulated operators, and reduced charges. Policymakers were urged to create fair regulations, fostering a stable environment for mobile money businesses to flourish. Telecom companies were encouraged to enhance network infrastructure, addressing a major concern for agents and users alike. The study's implications are substantial. Policymakers can use these findings to formulate regulations ensuring fairness in the mobile money sector. Investments in infrastructure and education were identified as crucial strategies to enhance socioeconomic welfare. Businesses, especially telecom companies, were advised to improve network connectivity, addressing a significant challenge faced by mobile money agents. Entrepreneurial initiatives focusing on digital literacy and financial management can empower communities. For future research, the study suggested exploring the long-term effects of improved network connectivity and reduced charges on agents and users. Sector-specific impacts, particularly in agriculture and small-scale businesses, warrant in-depth analysis. Furthermore, understanding the social and cultural factors influencing mobile money adoption in different localities within Kalaki Sub-county could provide nuanced insights. Addressing these areas will contribute significantly to the ongoing discourse surrounding the socioeconomic implications of mobile money services in developing regions.