Jonathan, Mantai Mamello Florence2020-12-042020-12-042020https://hdl.handle.net/10539/30304A research submitted in fulfilment of the requirements for the degree of Masters of Management in Finance and Investment (MMFI) to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2020The purpose of this study is to assess the effect that the growth of mobile financial services hashad on financial inclusion in Lesotho. The research focused on the two leading mobile network operators (MNOs), Econet Lesotho and Vodacom Lesotho, who launched the country's two Mobile Money services. Over the years, Mobile Money services have increased rapidly, largely replacing the traditional way of banking in the everyday lives of Basotho people. The study aimed at examining the reasons for this transition and how this new development has affected Lesotho in general. The report contains arguments that Mobile Money was indeed an invention that most people welcomed. The study found that most individuals prefer the use of mobile financial services to that of banks for various reasons: some indicated that bank charges are too costly for them; many who reside in rural areas do not have access to bank branches as they are usually located in the city; many also complained about the extensive documentation required to open a bank account. Although the government of Lesotho has implemented various means and strategies in the past in an attempt to increase financial inclusion in Lesotho, this has not been successful. The study used quantitative methods to examine the effect of mobile financial services on financial inclusion. Primary data was collected through the distribution of self-administered structured questionnaires on a sampled population of 114 individuals. For rigorous empirical testing of the data, secondary data was used to unravel the extent of the impact of mobile financial services on financial inclusion. However, both primary and secondary data were essential for reaching the final conclusions and findings of the study. Therefore, after all the analyses and evaluations, it was concluded that, despite its challenges, Mobile Money has improved the financial inclusivity of the many unbanked residents of Lesotho.enFinancial InclusionMobile MoneyFinancial ServiceM-PesaEco-CashUnbankedMNOsTraditional bankingSDG-8: Decent work and economic growthDissertationUniversity of the Witswatersrand, Johannesburg