Use of Mobile Phones for Economic Development in Cameroon

Abstract

Research concerning mobile phones and economic development in Africa has undergone rapid growth in recent years. This paper evaluates the rate at which Cameroonians use mobile phones to carry out their day-to-day business transactions and to a larger extent, investigate the type of business development brought about by mobile phones. It measures the extent to which mobile phones have enhanced business transactions among traders. In all, 100 questionnaires were administered on a face-to-face basis to business people in Buea, capital of the South West Region. The findings reveal that traders in Molyko rely mostly on mobile phones for business transactions (99%). Mobile phones have improved on their businesses by creating more business contacts (25.2%) and have brought trade closer to both producers and consumers. The data equally reveal that the use of mobile phones in business is an effective communication tool among traders (36.4%). Conclusively, the study reduces the gap between traders and consumers, which is a clear reality on the ground despites the challenges accompanying mobile phone use. Consequently, it recommends the full integration of this communication device (mobile phone) in all business transactions in Molyko in particular and other parts of Cameroon in general.

The Impact of Mobile Money on the Financial Performance of the SMEs in Douala, Cameroon

“…This innovation can help to reach those who do not have access to banking services and thus improve financial inclusion [22]. Ngange and Beng [19] and Chimaobi and Chizoba [31] demonstrated that mobile commerce facilitates communication between users. The later scholars went further to show that the platform improves the efficiency of the business operations.…”

“…In Cameroon, it is the State that made an effort by opening a bank for the SMEs in July 2015 [44]. However, even if the MNOs cannot offer microcredit in Cameroon, it is perceived by many scholars that the mobile money services facilitate the commercial dealings for SMEs [19,31]. According to Ngaruiya et al [10] and Amponsah [21], the rapid diffusion of mobile money transfer is seen as a potentially vital tool for facilitating financial transactions.…”

“…The findings of a study which was conducted by Chimaobi and Chizoba [31] revealed that SMEs in Nigeria, which traded using mobile systems, were able to shorten their delivery times significantly. Both Ngange and Beng [19] and Chimaobi and Chizoba [31]-maintain that using mobile money services facilitates communication between users and improves relationships between buyers and sellers. Effective communication has also significantly reduced the effects of the phenomenon which is known as asymmetric information or information failure between users, which results from one user in a transaction having significantly more information on it than the other.…”

“…The system enables the SMEs to receive payments directly from customers and also to make payments directly to suppliers through mobile telephones [17], without being obliged to leave or close their premises for lengthy periods. Accordingly, it provides a viable means for people or SMEs who do not have access to bank accounts to make financial transactions with ease, have access to funds when they are needed, without incurring additional charges such as transport and opportunity cost, and significantly improve the performance of their businesses as a consequence [18,19].…”

“…Although a considerable amount of research has been conducted concerning the effects which mobile money has had upon the performance of SMEs in Africa, particularly in Kenya, the topic has not been examined in Douala, Cameroon. The studies that delved in this area include Ngange and Beng [19] that studied the impact of mobile phone usage in economic development in Molyko. Covering a much bigger area, Ojong [26] looked at informal mobile remittances and socioeconomic factors in the North-West Region.…”