Mobile Money Usage and Financial Inclusion among Rural Households: Empirical Evidence from Bukombe District, Tanzania

Dionysius Joseph Msilikare
Tanzania Public Service College, Tabora Campus
Email: dionymsilikare@gmail.com

Abstract: This study examined the influence of mobile money usage on financial inclusion among rural households in Bukombe District, Tanzania. Specifically, it explored how mobile money enhanced access to savings and financial services, facilitated access to credit, and influenced household financial decision-making and resilience. Guided by Financial Capability Theory, the study employed a qualitative case study design. Data was collected from 25 purposively selected participants, including rural household members and mobile money agents, using focus group discussions and semi-structured interviews. The data were analyzed using thematic analysis. The findings revealed that mobile money was widely used for daily financial transactions, improved convenience and reduced reliance on cash. It enhanced access to savings by providing a secure and flexible platform for storing funds and supports access to financial assistance through quick transfers and informal credit. Additionally, mobile money improved household financial planning and strengthened resilience by enabling timely responses to economic shocks. However, its effectiveness was influenced by gender roles, financial literacy, and user confidence. The study concludes that mobile money significantly promoted financial inclusion, though its full potential depended on improved financial education and access.