DIGITAL INFRASTRUCTURE FOR INCLUSIVE GROWTH: MOBILE BANKING AND FINANCIAL TECHNOLOGY IN TOWNSHIP ECONOMIES

This paper develops a township-oriented diagnostic of digital financial inclusion, focusing on the gap between formal access and sustained use among township micro, small and medium-sized enterprises (MSMEs). A structured synthesis of 22 sources spanning scholarly, policy, regulatory, multilateral and industry evidence organised the findings across access, use, quality and enabling context. Mechanisms were classified as convergent when supported across at least two source categories. The evidence indicates that wider access to digital financial services does not consistently translate into repeated and meaningful use. Device and data costs, onboarding friction, transaction fees, unreliable serviceperformance and weak redress mechanisms may constrain routine use, particularly for small-value transactions. Limited digital capabilities, concerns about security and trust, and varying levels of financial literacy may further reduce adoption and continued engagement. Because direct township -level evidence remains limited, these mechanisms are treated as diagnostic propositions rather than estimates of prevalence or causal effects. The paper therefore proposes a framework for identifying where the transition from access to sustained use breaks down and translates this framework into measurable indicators for local diagnosis. Intervention priorities include affordable connectivity, proportionate onboarding requirements, reliable low-data payment solutions, transparent pricing, customer support and area-level monitoring systems. The framework is intended to support policymakers, regulators, financial service providers and development practitioners in designing interventions that address barriers to sustained usage. Further township-specific transaction data, survey evidence and field research are required to test the importance of these constraints and strengthen the evidence base for digital financialecosystems in South Africa.