Mobile Phones promoting growth for Africa!
With so many young people procrastinating on Twitter, Instagram and YouTube, the claim that mobile phones could help to promote growth in Africa seems highly implausible. If anything, people would be distracted, much like the youth of developed nations today, and growth could in fact decline!
Many in Africa are excluded from accessing banks. This is mainly due to the fact that banks are located in towns and cities, yet most of Africa’s population live in rural areas. A lack of adequate infrastructure hinders the movement of these peoples to cities to take out loans and start saving. Indeed, this is compounded by a high incidence of financial illiteracy. Moreover, there is the further disincentive of using financial institutions because the minimum deposit in most areas is 50pc of per capita GDP, and so the very poor are excluded from using these facilities.
