Mobile money reduces hunger by up to 13% for rural Mozambican families

Mobile money led to a 6% reduction in a vulnerability index (measuring episodes of hunger, lack of water, medicines, or school supplies) and an 8–13% decrease in vulnerability to hunger for communities affected by economic shocks, including floods, according to new research from Nova School of Business and Economics (Nova SBE).
Access to mobile money is transforming rural economies across Africa, driving migration, improving welfare, and reshaping traditional livelihoods.
Nova SBE’s Professors of Economics, Cátia Batista and Pedro Vicente conducted the first large-scale randomized field experiment on the topic in Mozambique, tracking households in 102 villages over three years. Their findings revealed that mobile money—sending and receiving payments and transfers via mobile phones—does more than just facilitating transactions: it can trigger structural and social change in developing economies.
Mobile money fundamentally changed how rural communities responded to economic shocks. Households with access to mobile money were better able to cope with floods, health crises, and other emergencies. They reported reduced hunger, improved access to education and healthcare, and increased remittances from migrants in other areas.
“Our results show that mobile money changed core behaviours of rural households, which became more likely to send migrants to earn income elsewhere and to receive remittances in times of need,” say the researchers.
The study found that easy access to mobile money led to a decline in agricultural activity and investments, suggesting that mobile money may gradually driving rural populations away farming, toward new paths to employment.
Batista and Vicente argue that these insights have broader relevance. “Our findings are likely relevant in the context of poor countries where large portions of the population remain engaged in subsistence agriculture and where mobile money is not yet available. The expansion of mobile money services should be a priority for policy in these countries accelerate economic development and strengthen resilience against shocks.” the researchers conclude.
The research highlights how a simple technological innovation—access to mobile payments—can trigger structural and social transformation, offering both opportunities and challenges for policymakers across the developing world.
/ENDS

For more information, please contact Lucy at @lucy@bluesky-pr.com