Digital Financial Services and Economic Resilience in Sub-Saharan Africa: Evidence from Mobile Money Adoption

Abstract

This paper examines the relationship between digital financial services adoption and economic resilience across 28 Sub-Saharan African countries from 2010 to 2023. Using panel data analysis and difference-in-differences estimation exploiting staggered mobile money rollouts, we find that a 10 percentage point increase in mobile money adoption enhances household resilience to economic shocks by 18%, measured through consumption volatility and asset retention following adverse events. The effects are strongest in rural areas and among female-headed households, suggesting that digital financial services disproportionately benefit economically vulnerable populations. These findings have important implications for financial inclusion policies and development strategies in resource-constrained environments.