Innovation and Growth Dynamics in Sub-Saharan Africa

This paper examined the relationship between financial innovation (mobile banking) variables of sub-Saharan Africa. Mobile banking (also known as mobile money) is a major financial innovation in the sub-Saharan region, and the system serves a medium through the unbanked and underbanked residents get financial services. The overall importance of financial innovation in the current digital and knowledge-based economy, for that matter innovation development inspired this study. Using partial linear regression model, a dataset from the International Monetary Fund (IMF), World Bank National Economic data and the mobile banking data were explored from GSMA for the period between 2011 and 2017 were analyzed. A negative correlation was found between the mobile money variables and growth as well as financial development, however, a positive relationship was established between financial development and growth. This positive link again supports the position that financial development influences economic growth. It is encouraged that policymakers develop and implement the necessary policy instruments capable of facilitating this form of financial innovation, and thus link its benefits with the national economy in general.