Does mobile money enable women-owned businesses to invest? Firm-level evidence from Sub-Saharan Africa

Women-owned businesses lag behind their male counterparts in many ways in Sub-Saharan Africa. Digital technologies such as mobile money can provide opportunities for women-owned businesses to bridge this gap. Our study finds that mobile money adoption increases the investment of women-owned business but not necessarily for men-owned businesses. This is especially the case for small and medium-sized enterprises. Part of the reason may be because mobile money allows women-owned businesses to build supplier and customer relationships and thus better access to liquidity. It also increases their demand for credit. Thus, the principal implication of this study is that policymakers should encourage the diffusion of digital technologies, especially to women entrepreneurs, to narrow the gender gap.