<p>Description of study variables.</p>

Mobile money has emerged as a low-cost financial instrument with strong potential to improve livelihoods, particularly in economies with weak formal financial systems. This paper examines the welfare effects on women and youth in Mozambique, a fragile, post-conflict country exposed to climate shocks. Using 900 household observations from the 2019 FinScope Survey and an instrumental variable approach to address selection bias, the study provides robust evidence on welfare outcomes. Results show that mobile money improves household welfare, with effects driven by active usage rather than mere account ownership. Specifically, mobile money reduces reliance on own food production, indicating improved market integration and liquidity, while enhancing consumption smoothing and investment in human capital. Welfare gains are transmitted through remittances and financial inclusion, strengthening household resilience. Women benefit through increased financial autonomy, consistent with evidence that digital financial services improve women’s entrepreneurship, financial decision-making, and economic empowerment [33], while youth rely on remittances to stabilize consumption. However, the instrumental variable approach relies on the assumption that network availability affects welfare only through mobile money adoption, a claim that cannot be fully tested and should be interpreted with caution. These findings suggest that policies should prioritize active usage and ecosystem integration over access alone.