Drivers and barriers to financial inclusion from the demand side in Mozambique. A multivariate analysis

Financial inclusion plays a crucial role in promoting economic growth and reducing inequality. Recognizing this potential, the Government of Mozambique has implemented initiatives to expand access to financial services, particularly through mobile money. Despite these efforts, levels of financial inclusion in Mozambique remain low. While previous studies have examined the determinants and barriers to financial inclusion, most adopt a multicountry panel approach that, although useful for cross country comparisons, often overlooks country specific dynamics. This study addresses that gap by analyzing the drivers of financial inclusion and exploring barriers to mobile money, which is increasingly regarded as a viable alternative to conventional banking in Mozambique. The analysis draws on Global Findex data covering 1000 individuals aged 15–95, applying a multivariate probit model and the Conditional Mixed Process (CMP). Results indicate that Mozambique shares certain features with other developing countries but also exhibits distinctive characteristics. The findings suggest that financial inclusion in Mozambique could improve as more services tailored to citizens’ circumstances are introduced and made accessible; however, sustained economic growth remains essential to ensure effectiveness. Stimulating the economy is therefore necessary to guarantee that individuals can both access and effectively use financial services.