Jean pierre ntirenganya memoire

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DECLARATION
I, Jean Pierre NTIRENGANYA hereby declare that, the work presented in this dissertation
entitled “Assessing the Effects of Mobile Technology on Rural Household Incomes and
Access to Financial Services in Rwanda (A Case Study: MTN Mobile Money Services In
Muyogoro & Mutunda, Huye District)” is my own work and has not been presented elsewhere
for academic qualifications. Where other people’s works were used, it is indicated in the
bibliography.
Jean Pierre NTIRENGANYA
Student’s signature…………….
Date…………………………….

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CERTIFICATE
This is to certify that this work titled, Assessing the Effects of Mobile Technology on Rural
Household Incomes and Access to Financial Services in Rwanda (A Case Study: MTN
Mobile Money Services in MUYOGORO & MUTUNDA, HUYE DISTRICT) was done by
NTIRENGANYA Jean Pierre, Reg No 12113136 a student in the option of Monetary Economics
in School of Economics, College of Business and Economics at University of Rwanda/ in partial
fulfillment of the requirements for the award of the bachelor's degree of Economics under my
guidance and supervision.
Signature.....................................
Supervisor: Mr. BIRASA NYAMULINDA
Date................../……… /2015

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DEDICATION
This work is dedicated to the almighty God, to my dear mother, brothers and sisters and
relatives, who gave their support towards the success of this research work.
Dedicated to my supervisor Mr. Birasa NYAMULINDA for his knowledge, time and effort he
sacrificed for me.
This work is also dedicated to my classmates and childhood friends for their valuable advices
during the research and the wall my life.
Thank you all, may God reward you for your generosity and kindness.

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ACKNOWLEDGEMENT
My Heartfelt, gratitude thanks to almighty God, the essence and source of my life, wisdom and
abilities that make me to be what I am. God is the one who paved my way since I was born,
during my primary and secondary studies.
I owe much tribute to those who made this dissertation possible. My special thanks to my mother
Juliènne MUKARUSAGARA for her constructive advices in my life. Thanks to my brother Mr.
Jean Pierre BIZIMANA and her wife Mrs. Claudine UWABABYEYI, for being my role model
in life and financial support during my studies and during my research process. Thanks also to
Jean Pierre RUTAYISIRE and her wife BYUKUSENGE K. Christine for their financial support
during my university studies, they were like my new parents. Thanks also to my sister
NYIRANSHUTI Esther for being my childhood friend and for their financial support during my
studies.
I am also thankful my sponsor Miss Marry Clancy for her support in Compassion International
during my primary and secondary studies.
I am extremely grateful to my supervisor, Mr. Birasa NYAMULINDA from the School of
Economics for willingly accepting to guide me and for his care, knowledge support, advice
accorded to me throughout the research process and systematically for his valuable time to
supervise this work.
I am also greatly indebted to the UR in general and in particular to the College of Business and
Economics for their tireless work done during my studies. I am also grateful to the all primary
and secondary teachers for transforming me in who I am now.
Lastly, my thanks go to my classmates, my childhood friends, my citizens and especially to my
respondents during the research. I offer blessings to you all
God bless you all

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TABLE OF CONTENTS
DECLARATION ........................................................................................................................ i
CERTIFICATE.......................................................................................................................... ii
DEDICATION.......................................................................................................................... iii
ACKNOWLEDGEMENT......................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................v
LIST OF FIGURES ................................................................................................................ viii
LIST OF ABBREVIATIONS.................................................................................................... ix
ABSTRACT ............................................................................................................................. xi
CHAPTER ONE: GENERAL INTRODUCTION .......................................................................1
1.1 Background of the Study....................................................................................................1
1.2 Problem Statement.............................................................................................................3
1.3 Objectives of the Study .................................................................................................3
1.3.1 General Objectives ......................................................................................................3
1.3.2 Specific Objectives......................................................................................................3
1.4 Research Hypothesis.....................................................................................................3
1.5 Research Questions............................................................................................................4
1.6 Scope and Limitations........................................................................................................4
1.7 Significance of the Study ...................................................................................................4
1.8 Organization of the Study ..................................................................................................4
CHAPTER TWO: LITERATURE REVIEW...............................................................................6
2.1. Introduction ......................................................................................................................6
2.2 Definition of Key Concepts................................................................................................7
2.2.1 Definition of Mobile Technology ................................................................................7
2.2.2 Definition of Household Income..................................................................................7
2.2.3 Access to Financial Services in Rwanda ......................................................................7
2.2.4 Definition of MTN Mobile Money ..............................................................................8

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2.2.3 Using Mobile Money...................................................................................................9
2.3 Overview of MTN Mobile Money in Rwanda....................................................................9
2.4 Mobile Money and Financial Inclusion ............................................................................10
2.5 Impact of Mobile money services ....................................................................................11
2.6 Business models for mobile money..................................................................................12
CHAPTER THREE: RESEARCH METHODOLOGY..............................................................15
3.1. Introduction ....................................................................................................................15
3.2 Research Design ..............................................................................................................16
3.3. Study Population and Sample Selection ..........................................................................16
3.4 Sources of data ................................................................................................................17
3.4.1 Primary data..............................................................................................................17
3.4 .2 Secondary data .........................................................................................................17
3.5 Instruments and Techniques of Data Collection ...............................................................18
3.5.1 Library Research .......................................................................................................18
3.5.2 Questionnaires...........................................................................................................18
3.5.3 Interview Guide.........................................................................................................18
3.6 Data Processing and Analysis ..........................................................................................19
3.6.1 Editing ......................................................................................................................19
3.6.2 Tabulation .................................................................................................................19
3.7 Limitations of the study ...................................................................................................19
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION..........21
4.1 Introduction .....................................................................................................................21
4.2 Presentation of the area of the study.................................................................................21
4.3 Analyses of responses of respondents ..............................................................................21
4.3.1 Gender of the respondents .........................................................................................22
4.3.2 Age group of the respondents ....................................................................................23
4.3.3 Education level of the Respondents ...........................................................................24
4.3.4 Marital status of the respondents................................................................................25
4.3.5 Occupation of the Respondents..................................................................................26
4.3.6 The duration of having access to MTN Mobile Money services.................................27
4.3.7 Sources of financial services u before MTN Mobile money services accessibility......28

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4.3.8 The frequent transaction in Mobile Money Services ..................................................29
4.3.9 Appreciation about MTN Mobile Money services .....................................................30
4.3.10 Achievements after using MTN Mobile money........................................................31
4.3.11 The problems associated with the MTN mobile Money Services in rural areas .......32
4.3.12 The new financial opportunities created by MTN Mobile money services in rural
areas ..................................................................................................................................32
4.3.14 Advices for better using and distributing the MTN mobile money services in rural
areas ..................................................................................................................................33
4.3.15 Other comment about our discussion .......................................................................33
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
.................................................................................................................................................34
5.1 Summary of findings .......................................................................................................34
5.2 Conclusion.......................................................................................................................35
5.3 Recommendations............................................................................................................36
5.3.1. To the government....................................................................................................36
5.3.2 To the MTN Rwanda.................................................................................................36
5.3.3. To the rural population .............................................................................................38
REFERENCES .........................................................................................................................39
APPENDICE ............................................................................................................................41

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LIST OF FIGURES
Figure 2.1 Global Mobile Money Deployment ..........................................................................12
Figure 2.2 Mobile Money Demand Curve .................................................................................13
Figure 2.3 Most and Least Expensive Remittance Corridors......................................................14
Figure 4.1 Gender of the respondents ........................................................................................22
Figure 4.2 Age group of the respondents ...................................................................................23
Figure 4.3 Education Level .......................................................................................................24
Figure 4.4 Marital Status of the respondents..............................................................................25
Figure 4.5Respondent’s Occupations.........................................................................................26
Figure 4.6 Duration of having access to mobile money services ................................................27
Figure 4.7 Sources of Financial Inclusion Before Having Access to MTN Mobile Money
Services ....................................................................................................................................28
Figure 4.8 Frequent transactions in mobile money services for the respondents.........................29
Figure 4.9 The appreciation of mobile money services ..............................................................30
Figure 4.10 The Achievements of the Respondents after using Mobile money...........................31

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LIST OF ABBREVIATIONS
CDMA: Mobile Code Division Multiple Access
DFID: Department for International Development
EAC: East African Community
GoR: Government
GPS: Global Positioning System
GSMA: Global System for Mobile Communications Association
ICD: Information and Communications for Development
ID: Identification Data
IFAD: International Fund for Agricultural Development
IFC: International Finance Corporation
KShs: Kenyan Shillings
LDCs: Least Developed Countries
MDGs: Millennium Development Goals
MFIs: Microfinance Institution
MNO: Mobile Network Operator
OECD: Organisation for Economic Co-operation and Development
PIN: Personal Identification Number
RURA: Rwanda Utilities Regulatory Agencies
SEEP: Small Enterprise Education and Promotion
SIM: Subscriber Identity Module
SMS: Short Message Service

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UN: United Nations
UNCTAD: UN conference on Trade and Development-
UNCTAD: United Nations Conference on Trade and Development

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ABSTRACT
Mobile technology plays a big role in economic development of the country. The purpose of this
study was to assess the effects of mobile technology on rural household incomes and access to
financial services in Rwanda, A Case Study: MTN mobile money services in MUYOGORO &
MUTUNDA, HUYE District. The study was guided by the objectives, demonstrating how rural
population can change rural population life style, knowing the problems associated with Mobile
money in rural areas and suggesting possible solution to some of these problems and lastly
identifying new financial opportunities that could be created in rural areas after accessing mobile
money services.
Mobile money in developing economies acts as an alternative infrastructure to existing financial
services; during the transition phase mobile money moves from an alternative infrastructure to a
complementary one. In the collaboration phase mobile money must fully integrate with the
financial infrastructure.
Mobile money service is currently promoted all over the world with their importance and roles
in the development of rural financial sector in their changes of socioeconomic activities like
promoting income generating activities in rural areas and changing rural population socio-
economic life style.
Mobile technology has a positive relationship on rural household incomes and access to financial
services in Rwanda as shown in this research conducted in Muyogoro and Mutunda, one of the
areas in which mobile money services are located. The study was conducted using qualitative
and quantitative research methodologies.
The result of the study revealed that mobile money service is highly correlated to rural household
incomes and access to financial services in Rwanda.
Rural populations recommend that the Government may put much emphasis in ensuring rural
household income and access to the financial services through the use of mobile money services.
They recommend to MTN Rwanda, to decentralize their services and increase the sensitization of
subscribing to the mobile money in rural areas. But rural population also must help the GoR by
concentrating themselves in IMIDUGUDU so that mobile money services distribution will be
easy.

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CHAPTER ONE: GENERAL INTRODUCTION
1.1 Background of the Study
The rapid rise in the growth of mobile technology throughout the world is a phenomenon that has been
particularly remarkable among poor people, largely because of the prepaid model. As a result, all classes
of society now have access to financial services as people become increasingly familiar with a mobile-
money system.
In fact, mobile technology, viewed as a payment or banking channel, has the potential to allow two
important questions to be addressed at the same time: on the demand side, it represents an opportunity
for financial inclusion among a population that is underserved by traditional banking services. On the
supply side, it opens up possibilities for financial institutions to deliver a great diversity of services at
low cost to a large clientele of the poorest sections of society and people living in remote areas.
Access to financial services is extremely limited in many parts of the world. In sub-Saharan Africa, less
than one in five households has a bank account, meaning deficient access to formal savings. Africans
also face substantial costs and risks when sending or receiving remittances: Africa includes the top five
most expensive remittance corridors in world. At the same time, the use of cell phones has been
dramatically changing the African landscape:
The first mobile money and digital currency held in Nairobi with Brian Muthiora. Brian joined the
local branch of GSMA, the telecom operator professional association, after 5 years
at Safaricom handling the regulation issues for MPesa, the mobile money system designed by the
Kenyan Telco. (Tonny K. Omwansa and Martin Pasquier, 2008)
M‐PESA was developed by mobile phone operator Vodafone and launched commercially by its Kenyan
affiliate Safaricom in March 2007.
M‐PESA (“M” for mobile and “PESA” for money in Swahili) is an electronic payment and store of valu
e system that is accessible through mobile phones. To access the service, customers must first register at
an authorized M‐PESA retail outlet. They are then assigned an individual electronic money account that
is linked to their phone number and accessible through a SIM card
resident application on the mobile phone.

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Customers can deposit and withdraw cash to their accounts by exchanging cash for electronic value at a
network of retail stores (often referred to as agents). These stores are paid a fee by Safaricom each time t
hey exchange these two forms of liquidity on behalf of customers. Once customers have money in their
accounts, they can use their phones to transfer funds to other M‐PESA users and even to non‐registered
users, pay bills, and purchase mobile airtime credit. All transactions are authorized and recorded in real t
ime using secure SMS.
M‐PESA is a small‐value electronic payment and store of value system that is accessible from ordinary
mobile phones. It has seen exceptional growth since its introduction by mobile phone operator Safarico
m in Kenya in March 2007.
East African countries, particularly Kenya led by M-PESA, have been the most successful users of
mobile money. Mobile money began in the Philippines in 2001. According to GSMA
(2012), in December 2011 there were 129 mobile money operators in the world with more than 100
million subscribers. In a survey of 52 mobile money operators, (GSMA) found that there were 141.8
million transactions in June 2011, 80 percent of which occurred in East Africa, with Kenya alone
accounting for 34 percent of transactions and 20 percent of the users. In 2011, 16 percent of adults report
having used a mobile phone to transfer money or pay a bill in Sub-Saharan Africa, as compared to a
global average of 5% (see Figure 1 for the split across type of usage).
While Rwanda started later than the other partner states in the EAC, its growth has been impressive.
Registered users reached around 1.2 million in 2012 (11.5 percent of the population), with close to 800
000 active in the month of October. However, it is still small compared to the markets in other East
African countries, particularly Kenya, where 67% of the population received transfers via mobile money
in 2011.
Mobile money describes financial transactions that are conducted using a mobile phone, where value is
stored virtually (e-money) in an account associated with a SIM card. Such transactions are compatible
with basic phones and do not require internet access. Mobile money systems have the potential of
extending the reach of financial services to populations not served by the traditional banking sector.
Mobile money has attracted more interest from the developing countries than from developed countries.

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1.2 Problem Statement
The Rwandan rural population has remained largely unbanked. Recently, the telecommunication
companies offered their services across the country with the mobile phone service providers came up
with the new innovation of mobile money. Mobile money has attracted more interest from the
developing countries than from developed countries.
Usually, this lack of financial services is more evident in rural areas in Rwanda. The most common way
to access the finance services in rural areas is to have account in that service. In emerging economies,
however, mobile money is being used strategically to enable people without bank accounts to carry out
financial transactions and to increase their rural financial.
Despite the efforts made by the Government of Rwanda and the efforts made by the telecommunication
company in promoting Information Technology, Rural financial remain at a lower level than in city.
Given the potential for the transformative impact of such a service of mobile money in rural areas,
despite the known impact, most of rural Rwandans are still not utilizing the mobile money to the full
potential if used at all. The question that begs for answer and requires immediate intermediation is what
adoption of this type of service.
1.3 Objectives of the Study
1.3.1 General Objectives
The study is to assess the effects of mobile technology on rural household incomes and access to
financial services in Rwanda.
1.3.2 Specific Objectives
 To know how the income for rural people has been changed due to the use of mobile technology.
 To identify new economic opportunities created by mobile technology.
1.4 Research Hypothesis
Consistent with the above objectives, this study had one hypothesis stated in two senses.
Ho: Mobile technology doesn’t have significantly and positive impact on rural household income and
access to financial services in Rwanda.

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H1: Mobile technology has significant and positively impact on rural household income and access to
1.5 Research Questions
 What are the problems associated with the MTN mobile money services in rural areas?
 What are new opportunities created by MTN mobile money services?
 What is the effect of MTN Mobile Money Services on rural population day to day life?
 What is the change in rural financial for the people due to the use of MTN mobile money
services?
1.6 Scope and Limitations
My research will be conducted in Rwanda, specifically in HUYE District, MBAZI and HUYE Sectors,
MUTUNDA and MUYOGORO Villages and it will be concerned with researching the effects of mobile
technology on rural household incomes and access to financial services in Rwanda. Those 2 villages are
the one of newly rural areas in which mobile money services are applied in HUYE District.
1.7 Significance of the Study
This study is interested academically and scientifically, socially, and personally as other scientific
research. This study will be done as a part of the requirements for the award of bachelor’s degree in
economics at University of Rwanda and its result will be used by other researchers and any other
referential purpose.
1.8 Organization of the Study
The research work will be divided into five main chapters, chapter one will compose of the general
introduction, background of the study, statement of the problem, objectives of the study, research
questions, hypothesis, and identification of the study variables, scope, significance and interest of the
study.
Chapter two involves the review of relevant literature with reference to different sources of data,
definition of terms and concepts and framework of the study.
Chapter three concern with the methodology to be used in carrying out this study. Research designs,
techniques of data collection and methods used.

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Chapter four is the empirical study on the impact of mobile money service in increasing rural financial
and interpretation of the result
Chapter five concerned with Summary, Conclusion and Recommendations from the study.

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CHAPTER TWO: LITERATURE REVIEW
2.1. Introduction
Financial services provided through digital mobility technologies have multiple configurations, goals,
and characteristics. Depending on the combination of agents, technologies and objectives, they may
have banking features, which are known as mobile banking. They may also have transaction payment
features, which are recognized as mobile payments. Finally, they may also replicate the concept of
money with digital features, which is then called mobile money. However the definitions of these
concepts are not rigid and their delimitations are not very clear. In fact there is a considerable confusion
with regard to the terms which are often used freely, regardless of their original meanings. This is the
case with mobile payments: it may refer to bill payments, acquisition payments, or a transfer of financial
resources or money between economic agents, and still come into the banking domain. In certain
contexts, other concepts would be more appropriate, like mobile money, mobile transfer and/or mobile
banking. This confusion of terms is not restricted to mobile services, but also to their objectives. For
example, the term “bankarization” has been used as a synonym for financial inclusion or even economic
inclusion, although these concepts are quite distinct. The wide use of these inaccurate definitions led us
to establish an initial conceptual basis, to support the literature review. It should be stressed that the
definitions given below are not the results of the review carried out in this paper, but was prepared as a
preliminary phase on the basis of related work (Jenkings et al, 2008; Laukkanen et al., 2008; Shen,
2011).
Mobile banking is no different to other financial transactions like banks and money transfers, so
standards must be drawn to regulate it to protect the consumer,” (Syed Zain Khan, 2009).
This chapter covers the meaning of Mobile Money, the background of MTN Rwanda mobile money, the
use of mobile money for the unbanked, the brief history of Mobile Money, Evolution of Mobile Money,
role of Mobile Money, the regulation of Mobile Money in Rwanda, the contribution of Mobile Money in
the Economy.
The Literature review was taken mainly from books and other publications. It gives first a general brief
History of mobile money in Rwanda. Therefore it addresses issues regarding the mobile money services
in general. Finally, details about the mobile money services in Rwanda and in East Africa are given at
the end of this chapter.

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2.2 Definition of Key Concepts
2.2.1 Definition of Mobile Technology
According to the Wikipedia, Mobile technology is the technology used for cellular
communication. CDMA technology has evolved rapidly over the past few years. Since the start of this
millennium, a standard mobile device has gone from being no more than a simple two-way pager to
being a mobile phone, GPS navigation device, an embedded web browser and instant messaging client,
and a handheld game console. Many experts argue that the future of computer technology rests
in mobile computing with wireless networking. Mobile computing by way of tablet computers is
becoming more popular. Tablets are available on the 3G and 4G networks.
2.2.2 Definition of Household Income
The combined gross income of all the members of a household who are 15 years old and older.
Individuals do not have to be related in any way to be considered members of the same household.
Alternatively, household income is the combined income of all members of a household who jointly
apply for credit. Household income is an important risk measure used by lenders for underwriting loans.
Investopedia Explains 'Household Income' as Average household income is a frequently reported
economic statistic. Because many households consist of a single person, average household income is
usually less than average family income, another frequently reported economic statistic, because a
household consisting of a single person is not included in the average family income calculation.
Household income is a measure of the combined incomes of all people sharing a particular household or
place of residence. It includes every form of income, e.g., salaries and wages, retirement income, near
cash government transfers like food stamps, and investment gains.
2.2.3 Access to Financial Services in Rwanda
Access to finance is the ability of individuals or enterprises to obtain financial services,
including credit, deposit, payment, insurance, and other risk management services. Those who
involuntarily have no or only limited access to financial services are referred to as
the unbanked or under banked, respectively.

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Accumulated evidence has shown that financial access promotes growth for enterprises through the
provision of credit to both new and existing businesses. It benefits the economy in general by
accelerating economic growth, intensifying competition, as well as boosting demand for labor. The
incomes of those in the lower end of the income ladder will typically rise hence reducing income
inequality and poverty.
The lack of financial access limits the range of services and credits for household and enterprises. Poor
individuals and small enterprises need to rely on their personal wealth or internal resources to invest in
their education and businesses, which limits their full potential and leading to the cycle of persistent
inequality and diminished growth.
Access to finance varies greatly between countries and ranges from about 5 percent of the adult
population in Papua New Guinea and Tanzania to 100 percent in the Netherlands (for a comprehensive
list of estimated measures of access to finance across countries. (Demirgüç-Kunt, Beck, & Honohan,
2008, pp. 190–191).
2.2.4 Definition of MTN Mobile Money
Mobile money is a service in which the mobile phone is used to access financial services.
According to the Business Dictionary,
The use of a mobile phone in order to transfer fundsbetween banks or accounts, deposit or withdraw
funds, or pay bills. This term is also used for the broader realm of electronic commerce; it can refer to
the use of a mobile device to purchase items, whether physical or electronic.
According to the Law Dictionary, mobile money is a Transfer funds between banks or accounts, deposit
or withdraw funds, or pay bills by mobile phone. Purchase items, whether physical or electronic, by
mobile phone.
Mobile money is the use of cell phones for money transfers, payments and more sophisticated financial
activities such as credit, savings, and insurance is increasingly popular in East Africa.
Indeed, considering the time and convenience the cross border mobile money business is becoming an
option for people paying across borders, something looked at to boost the fragile cross border trade.

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According to UNCTAD, Mobile money is there used loosely to refer to money stored using the SIM in a
mobile phone as an identifier as opposed to an account number in conventional banking. Notational
equivalent is in value issued by an entity (an MNO in this case) and is kept in a value account on the
SIM within the mobile phone that is also used to transmit transfer or payment instructions, while
corresponding cash value is safely held elsewhere, normally in a bank for the case of EAC. The balance
on the value account can be accessed via the mobile phone, which is also used to transmit instant
transfer or payment instructions.
2.2.3 Using Mobile Money
Mobile money applications are typically small pieces of software embedded on a SIM card or available
over a mobile network. A customer can use an inexpensive mobile to send value to someone else. To
change this digital value into cash, a user simply visits a retail agent who verifies the user’s identity and
makes the switch. In this way, money can cross enormous distances at the speed of a text message.
Consider a young Tanzanian who has moved to Dar es Salaam to find work. With mobile money, he can
send regular, small payments to his family at their rural home without needing to pay and trust a courier
or take it himself. His family can then exchange the digital value for cash at a local agent. (Davidson, N
and Leishman, P 2010).
2.3 Overview of MTN Mobile Money in Rwanda
MTN Rwanda has 3,556,497 subscribers as of December 31, 2013 and over Rwf 90 billion transactions
on its mobile money platform, giving it another shield from the growing competition from its rivals Tigo
and Airtel. (RURA Report, 2014).
Mobile money is the use of cell phones for money transfers, payments and more sophisticated financial
activities such as credit, savings, and insurance is increasingly popular in East Africa.
Indeed, considering the time and convenience the cross border mobile money business is becoming an
option for people paying across borders, something looked at to boost the fragile cross border trade.
According to the Independent on Monday, 18 August 2014 05:37, MTN Mobile Money in Uganda is
already showing impressive growth with a 47% increase representing 5.2 million registered subscribers
with transactions hitting UShs25 million (approx. Rwf 6.7 million) every month.

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In Kenya’s Safaricom M-Pesa increased the number of subscribers to 15.2 million towards the end of
the first half of 2013 up from 14.2 million in the same period in 2012, with revenues growing to
KShs10.43 billion while MTN Rwanda registered over Rwf90 billion transactions.
Moreover, the report by UNCTAD “Mobile Money for Business Development in the East African
Community: a Comparative Study of Existing Platforms and Regulations”, calls for keen coordination
and cooperation across various regulatory and market sectors, such as telecommunications, banking and
electronic commerce.
2.4 Mobile Money and Financial Inclusion
Mobile money adoption is currently lower in more developed countries, where most people have bank
accounts and the mobile phone is evolving as just another payment channel for existing financial
products and services and for customers with bank accounts. In emerging economies, however, mobile
money is being used strategically to enable people without bank accounts to carry out financial
transactions.
According to the World Bank(2008), financial inclusion, or broad access to financial services, is defined
as an absence of price or non-price barriers in the use of financial services. In a developing country, the
financial infrastructure is not well developed, with a limited number of payment instruments and a larger
unbanked population, because access to financial services is very costly. This results in a large
percentage of the population operating on a cash only basis and outside the formal banking system. In
some parts of the developing world, unemployment benefits and health insurance are not available, so in
difficult times, people rely on informal risk-sharing arrangements involving networks of friends and
family. In some cases, informal methods are also used to transfer money, which presents several risks.
Poorly developed transportation systems and expensive money-transfer services also help to make
mobile money more appealing. In rural areas, people have to travel long distances from their homes to
collect remittances; this represents a significant cost in addition to the already high transfer fees. Mobile
money may be the only viable alternative to cash.

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2.5 Impact of Mobile money services
According to data from the GSMA, most of the 100-plus deployments of mobile money systems have
been in developing countries, with around half in Africa alone (figure 2.1 below). Mobile money
systems can be made available wherever there is wireless phone service, helping to over-come distance,
as well as the lack of branch office s in rural areas.
Since mobile money is often linked to financial inclusion, it is vital to understand how and under what
conditions mobile money applications can extend financial services to the poor. Support for mobile
money initiatives from governments, nongovernmental organizations, and the international development
community needs to be justified by assessing the impact on development goals such as financial
inclusion, poverty reduction, increased productivity, and risk management.
Although the mobile money industry has achieved significant scale in only a handful of countries, a
growing number of studies are establishing its impact in a variety of areas. Its potential advantages
include benefits arising from the inherent characteristics of the services; benefits arising organically
from widespread usage and network effects; and benefits arising from purposeful and innovative
applications, either made by developers or created by people’s uses of mobile money services. (GSMA
Mobile Money Tracker 2012).

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Figure 2.1 Global Mobile Money Deployment
Source: GSMA Mobile Money Tracker 2012.
2.6 Business models for mobile money
Although it has received both direct and indirect support from the public sector, to date, mobile money
remains a private sector enterprise. To achieve profitability, mobile money providers have pioneered
three general business models: mobile-operator-led, bank-led, and collaborative. Because operators
control the mobile platform and have significant distribution capacity through their existing retail agent
networks, it is logical that mobile money deployments will often be initiated by operators who may
partner or collaborate with a bank. In some places, such as Pakistan, where the operator Telenor
purchased a 51 percent stake in Tameer Microfinance Bank, the boundaries between the two entities
may be blurred.
A variety of business models exist for mobile money. Although M-PESA popularized a model based
primarily on peer-to-peer transfers, mobile money systems elsewhere are quite different. For example, in
South Africa, WIZZIT is an independent mobile money provider that works over all mobile networks
and that has partnered with banks to provide customers with easily accessible accounts.

13
In Thailand, the two relatively successful mobile money operations have partnered with retailers from
the start and emphasize bill payment offerings.
According to the International Finance Corporation’s Mobile Money Study, in a given market, the
business case for mobile money will be driven by those players with the strongest incentive to develop
mobile money; the primary value proposition for targeted customers; and the regulation, demand, and
partnership requirements. Combining these variables, the Inter-national Finance Corporation has
developed mobile money demand curves that show how mobile money has different appeal in different
environments. (GSMA Mobile Money Tracker 2012)
Figure 2.2 Mobile Money Demand Curve
Source: IFC 2011

14
The black curve represents mobile money demand for developing economies. As developing countries
progress, financial infrastructure develops, and competition from banks, credit card companies, and
other financial institutions increases. The black curve becomes dotted because demand changes from
low-cost, low-speed, and infrequent to high-speed and high volume as represented by the blue curve.
The green curve starts off dotted because developed countries already have substantial financial
infrastructure, thus demand for low cost.
Low speed, infrequent transactions is low. The continuum is divided into three parts: alternative
infrastructure, transition phase, and collaboration. In developing economies mobile money acts as an
alternative infrastructure to existing financial services; during the transition phase mobile money moves
from an alternative infrastructure to a complementary one. In the collaboration phase mobile money
must fully integrate with the financial infrastructure.
Figure 2.3 Most and Least Expensive Remittance Corridors
Source: GSMA Mobile Money Tracker 2012.

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CHAPTER THREE: RESEARCH METHODOLOGY
3.1. Introduction
The chapter contains the steps and methods that were employed so as to obtain information. It consists
of the procedure, research design, data sources and collection, instruments, survey population. This
chapter further highlights data analysis and limitations of the study.
According to Wallis and David, the Research Methodology refers to the detailed procedure to be
followed to realize the research objectives. Another definition of research methodology is given by
Creswell, 1963, who states "Research methodology is a process of steps used to collect and analyze
information to increase our understanding of a topic or issue". It consists of three steps: Pose a question,
collect data to answer the question, and present an answer to the question
According to Red Man and Mary (1190:23) research is systematic effort to gain a new knowledge.
Methodology is the set of methods and principles that Ares used when studying a particular kind of
work (Kothari 1190:10)
This chapter presents, explains and justifies the methodology will be used in order to fulfill the goals of
the study, explains the research design, sampling procedures, sources of data, data collection methods
and tools and analysis methods and tools.
This chapter in details gives all the procedures that are used in conducting the study. The study consider
“Assessing the Effects of mobile technology on rural household incomes and access to financial services
in Rwanda, Case Study of MUYOGORO in Huye Sector and MUTUNDA in Mbazi Sector”
The strategy concludes the methods used to gather and analyse the data, how the research objectives
were achieved and how the problems encountered during the research was tackled (Kerlinger, 1973:
300).

16
3.2 Research Design
A research was investigated through cross sectional survey design across the two sectors (Huye and
Mbazi). This is because there are many people who use MTN Mobile Money and the MTN Mobile
Money Agent who have potential investment are found in those areas. Research design can again be
described as an overview, plan specifying the procedures that are to be employed in searching the
answer to the question.
Research design normally does describe ways showing how to collect process and analyze the data in
the area of the study. The data was obtained by the use of questionnaires; in addition, face interviews
were also conducted. Secondary data was collected from the MTN Publications (Various Libraries and
Internet Websites as indicated).
This study is carried out in MUYOGORO Cell in Huye Sector and MUTUNDA Cell in Mbazi Sector;
both sectors are located in Huye District, in Southern Province. Those sectors present all characteristics
of rural area and significant signals of development and a number of households use MTN Mobile
Money Services in few years ago connected and those who use MTN Mobile Money Services formerly
which make it a relevant case study of analysis. The study will use survey research design as it presents
oriented methodology to investigate connected households sample units in MUYOGORO and
MUTUNDA Cells. This will provide numeric description of some part of the population, describe and
explain how MTN Mobile Money Services in those sectors is accessed and how it will contribute in the
rural financial in those sectors.
3.3. Study Population and Sample Selection
To determine the sample size, the researcher based on the theory of (Jard and Richard 1995), the closer a
particular population is too homogeneity, the smaller the sample to be taken. Under normal
circumstances, the whole population will be used to get the information for the study. But due to
constraints of time and financial resources, a sample was chosen to present the whole population. The
selection of respondents was systematically done using random and non- random sampling techniques
for the purpose convenience, reliability and good quality data.
The researcher used simple random sampling and purposive sampling technique. Simple random
sampling is a technique where a sample is selected at random from the whole population. Simple
random avoids a bias in sample selection.

17
Bailey (1978:83) explains purposive sampling as a method of sampling whereby the researchers use
their own judgment about which participant to choose, and pick only those who best meet the purpose of
the study.
According to the theory of alain bouchard said that when all population is between 5000 and 100 the
sample size will be: n*63/n+63
N=number of total population
63 from the formula
Then the sample size is 1024*63/1024+63=59.34
Approximately 60 mobile money subscribers in both sectors.
3.4 Sources of data
Source is one of the materials the research uses for collecting information during the investigation. The
sources of data are both primary and secondary data.
3.4.1 Primary data
“Primary data is the type of data that is collected to help the research solve the specific problem when
carrying out the study”. “Primary data is when other one is carrying out a good research analysis and
when is unable to get and process the secondary data to reach at satisfactory information of the study”
Joel R. Evan and Barry Berman (1995:20).
The main techniques of primary data collection were interviews and questionnaires given to the MTN
Mobile Money subscribers and users across those two sectors.
3.4 .2 Secondary data
Extensive study and review of published and unpublished documents, reports, journals, magazines and
policy reports relevant to the study were used.
Secondary data is “a data gathering method that makes use of pre-existing data”. Richard M.Grinmell
and Margaret Williams, (1990:228). This method is important because it helps to review the literature.

18
The secondary data collection focused on reading related textbooks, reports; relevant exist journals,
business newspapers and internet articles.
3.5 Instruments and Techniques of Data Collection
A research instruments is a type of data collection device or procedure, system designed to gather data.
The major instrument and techniques that were used in this research for data collection include:
3.5.1 Library Research
This is a collection of techniques involved reading books and other documents relevant to the study
(documentations). Documentation is the study process and analysis of data that already exists in boxes,
in some organizations. In this research, the researcher based on documentation method as secondary
source of information to collect data from MTN Rwanda publications.
3.5.2 Questionnaires
A questionnaire can be defined as a list of well structured opened ended questions chosen and easy to be
understood and answered by various respondents whose answers are expected to be meaningful to the
research to reach at the objective of the study. Therefore, questionnaire structure was employed as an
instrument to gather information on different aspects of the case study.
The researcher used one questionnaire containing structure questions. These questions require
predetermined responses in asking the respondents to give the views about the phenomena. The
questionnaire was addressed to a sample of the customers and the people who are around the MTN
mobile Money Agent.
The research used covering letter explaining the overview of the study and the questionnaire and the
recipients were asked to fill the forms provided. The whole process was confidential for no recipient’s
confidentiality would be assured and no names that were require.
3.5.3 Interview Guide
This method assumed that the respondents to be interviewed should be the subscribers and users of
MTN Mobile Money Service. It is system of data collection where by the interviewees are asked

19
questions about what they thought assessing the effects of mobile technology on rural household
incomes and access to financial services in Rwanda.
The questions that were asked were easy to understand and every respondent was able to answer in his
or her own view.
3.6 Data Processing and Analysis
Data processing and analysis is defined as the link between data collection, processing and analysis. It is
all about transforming the findings collected from the field.
During data processing, all the data that was relevant to the study was taken and then processed into
meaningful information in a quite easy way to be interpreted for better understanding. Thus was done
though:
3.6.1 Editing
This involves checking for interviewer mistakes in case they appear (Roger 1991:483).questionnaires
are always edited at least twice before being submitted for data entry. Editing refers to going through the
questionnaire making certain collections.
3.6.2 Tabulation
This is another technique that was employed to process the collected data during the study. This is all
about transforming the collected data in form of statistical tables like percentages and frequency
appearance of the asked questions and responses.
3.7 Limitations of the study
Language barrier is a limitation the research faced in the process of compiling the data in respect of this
research. A case in point is that most of the questionnaires were written in English thus limiting to
respondents to only those who are capable of reading and writing English. However the research used
his multi-lingual capabilities to translate and clarify for the respondents in either French or
Kinyarwanda.
The element of cost was another limitation the research faced, in the sense that some of the selected
respondents could not be found during the time of collecting questionnaire. This obliged the research to

20
go and come back several times. However the research managed to collect the necessary data through
visits.
Researcher had limited time, since he had to combine studying and doing research, these could not allow
him to exhaustively accomplish these tasks. Through advice given by the supervisor, and the self
sacrifice, more effort and time was committed to completing this study.

21
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION.
4.1 Introduction
This chapter dealt with the analysis and interpretation of data collected for achievement of study
objectives. It involved the presentation of data, discussion of the major findings of the study and their
interpretation.
Percentages and frequencies were used as a means of analyzing and interpreting the data. The analysis
was made on the responses of 60 respondents; we have households that constitute the total sample of
respondents. Basically, primary data analyzed was collected from respondents drawn from population of
MUYOGORO and MUTUNDA Cells in HUYE District.
4.2 Presentation of the area of the study
This study was conducted on the assessing the effects of mobile technology on rural household incomes
and access to financial services in Rwanda, in MUYOGORO and MUTUNDA Cells in HUYE District.
4.3 Analyses of responses of respondents
This analysis is based on responses provided by 60 members of households subscribed in MTN Mobile
Money Services to questions asked to them through the questionnaire. The responses and their analysis
are indicated below by use of table.

22
4.3.1 Gender of the respondents
Figure 4.1 Gender of the respondents
Source: Primary data (2015)
Figure 4.1 indicates that out of 60 Subscribers in MTN Mobile money asked, 24 are male which
represents 40% number of respondents and 36 are female which represents 60% of respondents. This is
due to the fact that women spend more time at home rather than men and during the research women
was easily accessible at home rather than men. During the research, the researcher visited households
and the Mobile Money services centers during working hours and these women was in majority asked
because they spent more time at home in accomplishing domestic activities. In contrary men are outside
of homes in their respective jobs.

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4.3.2 Age group of the respondents
Figure 4.2 Age group of the respondents
The figure 4.2 and this table show that 31.67% of the respondents are between 16 and 31 years old, 30%
of the respondents are between 31 and 46 years old, 26.67% of the respondents are between 46 and 61
years old and 11.67% of respondents are above 60 years old.
This means that all group of age like to use mobile money services, as we consider the frequency of
group of age is located in youth group which occupies 31.67% because in developing countries, many
populations are in the youth group and there is positive relationship between them and the mobile
technology and the mobile money using.
There is no distinction of age group about mobile money services accessibility because no one is
excluded in those services, they have positive relationship.

24
4.3.3 Education level of the Respondents
Figure 4.3 Education Level
The figure 4.3 and this graphical above show that 5.0% of respondents have not got any study, 43.3% of
respondents have got only primary level studies, 30.0% completed their secondary studies, 10.0%
completed the vocational training and 11.7% has completed a university degree. This is asked to
determine if there is any relationship between the level of education and the desire of being subscribed
to the mobile money services and enjoying positive effects of mobile technology.
This also helps the researcher to determine the influence of mindsets of people on mobile money and the
researcher found that some population have accessed mobile money services because they know it
importance and other ignore that importance and deny to subscribe themselves on MTN Mobile Money
Services.

25
4.3.4 Marital status of the respondents
Figure 4.4 Marital Status of the respondents
The figure 4.4 and this graphical represent the marital status of respondents showing that 41.67% of
respondents are single, 35% of respondents are married, 6.67% of respondents are divorced, 3.33% of
respondents are widow and 13.33% of respondents are widowers.
Many of them are single; it means that in rural areas the single group likes to use mobile money services
in their financial transaction services and the other marital status such as married, divorced, widow and
widower like also to use mobile money services in order to make improvements on their income.

26
4.3.5 Occupation of the Respondents
Figure 4.5Respondent’s Occupations
The figure 4.5 above show that 18.333% of respondents live as students, 41.666% as farmers and 5% as
industry, 13.333% as services and 21.66% are unemployed people.
So many of them are in agriculture labor and as we know, the Rwandan agriculture is applicable in rural
area, the mobile money services safe money transfers, particularly to those who live in rural areas, is
obvious; and the benefits have been much discussed in field. However, by extending functionality and
thinking laterally, MTN Mobile Money has been expanded to further serve the unbanked of
MUYOGORO and MUTUNDA.
Sellers of agriculture products need mobile money services for saving their daily payments, As you can
think, these who need more MTN Mobile Money services in order to send, to rend and to spend money
for those who live in agriculture labor.
The above table shows in that areas, the unemployed people subscribed in that service in order to
familiar with the supporters in terms of money transfers.

27
As mentioned above, the mobile money services don’t consider the occupation of respondent because it
facilitates to access the financial services in their dairy activities.
4.3.6 The duration of having access to MTN Mobile Money services
Figure 4.6 Duration of having access to mobile money services
Figure 4.6 above shows that 13.33% of respondents have accessed MTN mobile money services in
between one month and three years ago, 66.7% of respondents have accessed MTN Mobile Money
services between three and six years ago and 20% accessed MTN Mobile money services in above six
years ago. This show that MTN Mobile Money services in MUYOGORO and MUTUNDA cells is done
recently which is the reason why so many populations have not yet subscribed in those services.

28
4.3.7 Sources of financial services u before MTN Mobile money services accessibility
Figure 4.7 Sources of Financial Inclusion Before Having Access to MTN Mobile Money Services
In figure 4.7 above show that 10% of respondents have account in Bank as sources of financial before
accessing MTN Mobile Money services, 15% of respondents have account in Tigo Cash in their
financial services before MTN Mobile Money Services, None of respondent created account in Airtel
Money as source of financial services before MTN Mobile Money Services and 75% of respondents
were unbanked and they started to subscribe in MTN Mobile Money Services before other
telecommunication companies. Some of respondents show that the reason is that MTN started before
other telecommunication companies, it has the network across the country, it is used by the local
authority, it makes low costs by sending and receiving money and it make the confident to their
customers
But now, those respondents use above one source of financial inclusion because there are no barriers for
entry.

29
4.3.8 The frequent transaction in Mobile Money Services
Figure 4.8 Frequent transactions in mobile money services for the respondents
Before asking the frequent transaction in mobile money services, all the respondents argue that there are
important transactions in mobile money services, it means that 100% like that.
In the figure 4.8, it shows that 20% of the respondents like to depose their money, 48.33% of the
respondents like doing the transaction of withdrawing, 16.67% of the respondents like to send their
money with mobile money services, 8.33% of the respondents like to buy airtime with mobile money
services and 6.67% of the respondents like to buy the cash power by using mobile money services.
As mentioned in the above table, many of the respondents like withdrawing transaction because, the
deposers in mobile money services, the senders or receivers of the money from MTN Mobile money,
both like to withdraw their money.
Each mobile money transaction has positive relationship on rural household income and access to the

30
So, the MTN Rwanda must sensitize to household to make efforts of using mobile money services for
buying cash power, buying airtime and to innovate other financial transaction via mobile money services
or via by telephone because it saves money, time and energy.
4.3.9 Appreciation about MTN Mobile Money services
Figure 4.9 The appreciation of mobile money services
The figure 4.9 showing that 25% of the respondents appreciate that MTN Mobile money services are
very good, 68.3% of the respondents appreciate that MTN Mobile money services are good, the 5% of
the respondents appreciate that MTN Mobile money services are bad and the last 1.67% of the
respondents argue that MTN Mobile money services are very bad.
As mentioned in above table 4.9, most of them argue that MTN Mobile money services have positive
impact in financial transactions and can contribute on rural development household income.

31
4.3.10 Achievements after using MTN Mobile money
Figure 4.10 The Achievements of the Respondents after using Mobile money
The figure 4.10 shows that 5% of the respondents build a house from the money which are in terms of
mobile money services, 56.67% of the respondents bought domestic animals, 78.33% of the respondents
bought other properties like: radio, mattress, bicycle, and other equipments, 85% of the respondents
were able to pay school fees for children by using mobile money services, 75%of the respondents were
able to pay insurance, 65%were able to save by using mobile money services, 51.67of the respondents
received money via MTN Mobile money and make financial transaction for buying the food, 90% of the
respondents used money for other financial reasons and 3.33 did not achieved none of product by using
MTN Mobile money.

32
4.3.11 The problems associated with the MTN mobile Money Services in rural areas
Problems with mobile money agents, all registered of mobile money users experienced agent-related to
the problems of lack of enough skills. The top three problems were the same across all providers: the
agent are not enough in the rural areas, the agents do not have any enough e-float and they do not have
any have enough cash to make well transaction. Very few registered users filed a formal complaint,
making it difficult for providers to track and address the problems. Six in ten rural registered users told
me that agent related issues. Lack of mtn mobile money agent
Lack of advertissment about MTN Mobile money services in rural areas because many of the
respondents said that they do not well perfom some essential MTN Mobile money transactions like
buying airtime and cash power.
Lack of capital, some MTN Mobile money agent don’t have the sufficient funds in order to make all the
withdrawing transaction remmitances.
Lack of sufficient towers and the problem of network connection: Some times the mobile money
transactions fail because of connection and other problems related to the insufficient of towers.(Primary
Data, June 2015).
4.3.12 The new financial opportunities created by MTN Mobile money services in rural areas
Mobile money represents a tremendous opportunity for social impact through enabling customers to
access services which can help them to manage their daily lives and improve their livelihoods. It also
represents an important commercial opportunity, and as such many of our members have built
mobile money into their core strategy for achieving future revenue growth.
Selling airtime for those who use MTN Mobile money services.
Selling SIM Cards in order to increase the MTN mobile money services.
Subscription in MTN mobile money services.
Selling telephones.
Charging the telephone battery.
The business creations in the rural areas such as Alimentation, Restaurants and other products.

33
All those above new financial opportunities make financial benefits for the user of mobile money
services. (Primary Data, June 2015).
4.3.14 Advices for better using and distributing the MTN mobile money services in rural areas
Increasing MTN Mobile money agents in the rural areas in order to distribute well the MTN mobile
money services across the country.
Increasing marketing and advertisement in order to encourage rural household income to use mobile
money services.
Increasing the competent technicians in terms of network and towers managements in order to avoid the
lack of connection which is the barrier of MTN Mobile money services.
Innovating the new financial transactions by using MTN Mobile money services.
To make the rewards and promotions in terms of bonus for those who make more MTN Mobile money
services in their financial transactions in order to encourage their customers. (Primary Data, June 2015).
4.3.15 Other comment about our discussion
Mobile money users (the subscribers of mobile money services) are more active users of financial
services than households with no mobile money users. Households with mobile money users also
engage in a wider variety of financial operations, and are more likely to try to reduce risk through
insurance or by saving money.
Households with at least one mobile money user are four times more likely to report sending or
receiving remittances in the past six months than households that have no m-money users. This is
possibly a reflection of the fact that households with m-money users are more likely to be urban, banked
and relatively well-off. Households with m-money users are almost three times more likely to report
sending or receiving a non remittance payment compared with households with no m-money users.
Finally, households with m-money users are more likely to store money and own insurance compared to
households with no m-money users.
Many respondents in the rural areas thank for MTN Group for their services of mobile money. (Primary
Data, June 2015)

34
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings
In this work entitled “Assessing the Effects of Mobile Technology on Rural Household Incomes and
Access to Financial Services in Rwanda”
Begins with describing the matter to be researched; the problem statement mainly shows how the MTN
Mobile money services are mostly needed to improve rural population life style in terms of financial
services in Rwanda. The hypothesis was predicted as the mobile technology can play a considerable role
on rural household income and access to financial service in Rwanda.
Many writers have tried to describe the relationship between Mobile technology has significant and
positive impact on rural household income and access to financial services in Rwanda and they found
controversial decisions. Some of them has shown that Mobile money services are vital for rural
economic development because it contribute in financial inclusion, capital formation, small business
development, saving and social development. But some others stipulate that mobile money services are
costly than the bank services and it does not directly contribute to rural economic development because
it increases costs in households especially when they try to withdraw their money. So, those
controversial ideas of writers have been my motive to undergo this research.
I used different techniques and methods to collect data and generally to conduct this research. The main
methods used in this work were the interview and questionnaire. Many techniques like sampling and
survey was been used to make this research as it is. These all methods were used to get useful
information for accomplishing this research.
Many answers given by respondents through the questionnaire were concerned mainly to the role of
mobile technology on rural household incomes and access to financial services in Rwanda can improve
rural population welfare.
Rural population agreed that before accessing the MTN mobile money services, 75% were unbanked
because many financial services are located in the cities, other respond that Mobile technology has
decreased the costs of transport to access the financial services because they spent time, money and
energy before accessing those services which are unfound in the rural areas. Mobile technology also

35
permitted rural population to create new financial activities like airtime selling, SIM Cards selling,
Subscription in Mobile money services, telephone selling, charging the telephone’s battery and trade
development.
The mobile technology play a significant role to rural population new life facilities like mobile money
services, development of entertainment to rural population through Social Medias like radio,
development of communications through mobile phones because there are other social medias found in
mobile applications like facebook, WatsApp which develop social network relationship in the society.
The supply of mobile money services in Rwanda has an impact on the rural development in Rwanda
because 100% of respondents confirmed that it develops the rural population in their financial services
and they appreciate the supply of mobile money services in rural areas.
Others findings meet in this research are problems associated with mobile money usage in rural areas.
Those include the problem of theft, poor services from some mobile money services agents, high costs
price of withdraw, lack of historical data of transaction for your account and the problems of network.
And finally the researcher wants to know what the respondents think about the policy of increasing the
mobile money services, respondents argued that the government and MTN Rwanda may always play a
considerable role, and the citizens collect their contributions to help the government to achieve its
mission of improving the accessibility of financial services to all Rwandans, they suggested that MTN
Rwanda must improve their services, The RURA must well supervise the telecommunications
companies especially MTN Rwanda and lastly reducing the price of withdraw and the problem of
network. The research ended by concluding that Mobile technology has significant and positive impact
on rural household income and access to financial services in Rwanda.
5.2 Conclusion
The availability of mobile money services supported development of rural areas in Rwanda. There is a
direct link between arrival of mobile technology and rural household income and access to financial
services such as establishment of new activities, economic growth, and expansion in the rural areas in
Rwanda. The study findings of this research revealed that there is a possibility of rapid emergence and
development of small business in rural areas if the rural financial services supplied should be available,
reliable and affordable to most of rural area.

36
It is believed that with time, it is possible that rural communities would be able to take advantage of the
opportunities provided by the introduction of mobile money services by establishing more income
generating activities and use MTN mobile money more productively.
The rural household income, access to the financial services in Rwanda have high positive relationship
with mobile technology, to mean that under my hypotheses saying that the mobile technology has a
positive impact on rural household income and access to the financial services in Rwanda, based on the
responses from the population I worked with, my hypothesis has been confirmed.
5.3 Recommendations
5.3.1. To the government
The Government must encourage their people to use mobile money services as a secured way to access
the financial services In Rwanda in order to avoid the risk of thieves.
The mobile money supply in rural area may be encouraged: The government can sensitize to the MTN
Rwanda agent to supply mobile money services in rural areas in order to facilitate people to get access to
the financial services.
The Government must well supervised all the financial transactions concern the MTN Mobile money
services in order to protect the customer’s rights.
The GoR must increase the power energy in terms of electricity in the rural area in order to improve
some MTN Mobile money services bulk payments mobile money ATM withdrawal mobile money
online payments mobile money bank integration.
5.3.2 To the MTN Rwanda
MTN Rwanda must decentralize their services in rural areas; the people must be encouraged in
implementing the policy of settlement for subscription in Mobile money services easily. The policy of
settlement has to be enforced in order for the Government of Rwanda to distribute electricity in way that
it reaches to everyone.

37
MTN Rwanda must improve their customers’ services by increasing the number of technicians to assist
people in cases of network interruption or any other problems related to the connection in rural areas so
that the subscribers have to use efficiently the mobile money services.
MTN Rwanda must give more training to their customers to how they may know their terms and
conditions about MTN Mobile money services.
MTN Rwanda must deal with other eastern Africa country’s telecommunications company with
favorable facilities in mobile money services across the country in order to improve the financial
services and the business field in general.
MTN Rwanda also has to improve mobile money services with high capital in rural areas and encourage
people to use efficiently the mobile money services in promoting small business.
MTN Rwanda must give more training to their agents about the mobile money services, and those
agents must well check the identification of the customers before doing any withdrawing service in
order to avoid the risk.
MTN Rwanda must doing a research about the wishes of their customers in order to improve its services
and it should diversifies its services by introducing new financial services done in the bank like saving
account and cash credit services.
MTN Rwanda must set a menu showing the historical transaction done in mobile money to their
customers in order to avoid the risk of thieves.
MTN Rwanda also has to make sure if the effort made in distributing their services goes in the same rate
with the efforts made in supplying new agents of mobile money in rural areas because increasing MTN
services accessibility without increasing mobile money services in rural areas may decrease their
customers and mobile money services becomes useless to many population. So, the reductions in terms
of promotions given for using airtime should be applicable for the user of mobile money services.
(Primary Data, June 2015).

38
5.3.3. To the rural population
Despite the all-out resolve of the government and the international willingness to support the financial
sector, major challenges still lie ahead on the way to increased access for rural populations. The
topography of Rwanda landscape makes power extension expensive. Despite subsidies by the
government, the capacity of the population to pay for connection and consumption is still a major
setback for low-income households. So in order to overcome those blocks rural population may:
Have to dwell in villages called “IMIDUGUDU” so that the supply of mobile money services will be
easy and accessible to all population.
To invest their money in MTN Mobile money services and other products related to mobile technology.
Have also to use efficiently the mobile money services in different financial services like deposit their
money, money transfer and buying cash power because it is more secure than holding money in hand.
Form cooperatives to put together their quota share so that they may help the government to support
them in order to make investment in mobile money services. (Primary Data, June 2015).

39
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 Claire Pénicaud and Arunjay Katakam (2014), “State of the Industry 2013: Mobile Financial
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 African Mobile Observatory/GMSA (2011), “Driving Economic and Social Development
through Mobile Services. London: GSMA”.
 Ernst & Young(2010), Mobile Money: an overview of global telecommunications operators.
 Hughes, Nick and Susie Lonie (2009). “M‐PESA: Mobile Money for the Unbanked.”
Innovations, special edition for the Mobile World Congress 2009 (Boston, MA: MIT Press).
 Claire Pénicaud and Arunjay Katakam (2014), “State of the Industry 2013: Mobile Financial
Services for the Unbanked”
 Safaricom (2009). “M‐PESA Key Performance Statistics” and various financial reports
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 JENKINGS, Beth (2008). Developing Mobile Money Ecosystems. Washington, DC, IFC and the
Harvard Kennedy School, 2008.
 BESHOURI, Chris; CHAIA, Alberto; COBER, Beth; GRAVRÅK, Jon (2010). Banking on
mobile to deliver financial services to the poor.
 DAHLBERG, T, N MALLAT, J ONDRUS, and A ZMIJEWSKA (2008). “Past, present and
future of mobile payments research: A literature review.” Electronic Commerce Research and
Applications 7 (2): 165-181.
 DINIZ, E.; BIROCHI, R.; POZZEBON, M. (2011) Triggers and barriers to financial inclusion:
The use of ICT-based branchless banking in an Amazon county. Electronic Commerce Research
and Applications,

40
 BOATENG, Richard (2009). Mobile Phones and Financial Services in Developing Countries: A
Review Of Concepts, Methods, Issues, Evidence And Future Research Directions, Third World
Quarterly, 30 (7): 1237-1258.
 JENKINGS, Beth (2008). Developing Mobile Money Ecosystems. Washington, DC: IFC and
the Harvard Kennedy School, 2008.
Reports
 Global Financial Inclusion. McKinsey & Company‟s Social Sector office.
Diniz, Albuquerque and Cernev Mobile Money and Payment: a literature review
Proceedings of SIG GlobDev Fourth Annual Workshop, Shanghai, China December 03, 2011
 Vodacom and M-PESA Tanzania. (2010). www.vodacom.co.tz Vodacom and M-PESA
Tanzania;
 Safarikom and M-PESA Kenya. (2010). www.safaricom.co.ke TanzaniaInvest. (2009) “Tanzania
Finance Welcomes Suggestions for SMEs”.
 Dar es Salaam Report Porteus D. (2008), Is M-banking advancing access to basic financial
services in Africa?
Internet sources
 http://www.independent.co.ug
 http://www.mtn.co.rw
 http://www.mobilemoney.com
 http://www.safaricom.co.ke

42
QUESTIONNAIRE FOR DATA COLLECTION
TOPIC: ASSESSING THE EFFECTS OF MOBILE TECHNOLOGY ON RURAL
HOUSEHOLD INCOMES AND ACCESS TO FINANCIAL SERVICES IN RWANDA (A CASE
STUDY: MTN MOBILE MONEY SERVICES IN MUYOGORO & MUTUNDA, HUYE
DISTRICT)
I, Jean Pierre NTIRENGANYA a student in bachelor degree in School of Economics at University of
Rwanda/ Huye campus and am carrying out my research about Assessing the Effects of Mobile
Technology on Rural Household Incomes and Access to Financial Services in Rwanda (A Case
Study: MTN Mobile Money Services in Muyogoro & Mutunda, Huye District. This is one of the
requirements to get this degree.
Please kindly help me in this study by answering the following questions in a way you feel appropriate.
Your response will be only for academic purpose and will be treated confidential.
TO THE MTN MOBILE MONEY SUBSCRIBERS
SECTION I
1. Gender
a) Male b) Female

43
2. Age Group
18-35 35-45 45-55 55-65 Above 55
3. Education level
None Primary Secondary Vocational University
4. Marital status of the interviewee (tick a correct answer)
a) Single b) Married c) Divorced
d) Widow e) Widower
5. Occupation of the interviewee: a) Student b) Farmers
c) Industry d) Services e) Unemployed
SECTION II
1. For how long have you accessing to the MTN Mobile Money services?
a) Less 1 year b) Between 1 and 3 years c) Between 3 and 5 years
d) Above 5 years
2. Before accessing to the MTN Mobile Money Services, Did you have any other account?
a) Bank b) Tigo Cash c) Airtel Money d) None

44
3. Is there any important financial service done by MTN Mobile Money?
Yes No
If yes, what is your frequent transaction in Mobile Money Services?
a) Deposit Money b) Sending Money c) Withdrawing Money
d) Buying an Airtime e) Buying Cash Power
4. How do you appreciate about the MTN Mobile Money Services?
a) Very good b) Good c) Bad d) Very Bad
5. Indicate your achievements gained after using MTN Mobile Money Services
ACHIEVEMENTS YES
Build a house
Bought a domestic animals
Bought other properties like: radio, mattress, bicycle, and other equipments.
Able to pay school fees for children
Able to pay insurance
Able to save
Bought the food
Others (Specify)………………………………………………………………
None

45
6. Would you wish to still a Mobile Money Subscriber?
Yes No
If not or not, what do you need to be improved in MTN Mobile Money Services?
........................................................................................................................................................................
........................................................................................................................................................................
....................................................................................................................................
7. What are the problems associated with the MTN mobile money services in rural areas?
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………
8. What are new financial opportunities appeared in this cell after getting access to MTN mobile money
services in your area?
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………
9. What are your advices for better using and distributing the MTN mobile money services in rural
areas especially in your village?
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………
10. Is there any other comment about our discussion?
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………

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