Evaluation of the Factors Affecting Mobile Money Operators’ Credit Access: A Case Study of Lusaka Central Business District

Background: The government of the Republic of Zambia had long emphasized the significance of fostering economic growth through enhanced access to financial services. However, the persistent issue of income inequality and sluggish economic expansion underscored the need for targeted interventions. In response, the emergence of Mobile Network Operators (MNOs) in the financial sector, offering a diverse range of services including credit access, represented a concerted effort to address these challenges. Despite these advancements, a comprehensive understanding of the determinants of MNOs' credit access remained lacking, particularly in the specific context of the Lusaka central business district. Consequently, the primary purpose of this study was to rigorously evaluate the various factors that influenced mobile money operators' access to credit within the Lusaka central business district of Zambia. Method: This research employed a case study research design to investigate the factors that influenced credit access for Mobile Network Operators (MNOs) in the Lusaka central business district. A mixed-methods approach was adopted, combining quantitative and qualitative data collection methods. The study's sample consisted of 125 MNOs, which were selected through a combination of simple random sampling and purposive sampling to ensure a representative cohort of respondents. This approach facilitated a holistic exploration of the various factors that impacted credit access among MNOs. Results: The study's findings highlight several key determinants of credit access among mobile money operators. Demographic factors, such as age, emerge as influential, with youths aged 20-34 demonstrating both technical proficiency and a better grasp of credit information. Education levels also prove to be correlated with mobile money service operation, as respondents with higher education levels exhibit greater ease in accessing and understanding mobile money credit services. Network availability emerges as a pivotal factor driving the adoption of mobile money services. However, a notable proportion of respondents expressed challenges in accessing credit through mobile networks. Trust and security concerns are identified as significant barriers deterring potential users from engaging with mobile money services. Conclusion: In light of the study's findings, it is recommended that comprehensive awareness programs be implemented within central business district schools. These programs aim to equip budding entrepreneurs with the knowledge and skills necessary for responsible engagement with mobile money services. By targeting the youth demographic, these initiatives seek to instil soundfinancial habits from an early age, thereby contributing to improved financial access, reduced income inequality, and enhanced economic growth in the Republic of Zambia.