Drivers of financial inclusion in sub-Saharan Africa countries
Bibliographic Data
| ID | 22110724 |
|---|---|
| Authors | Abdikani Jama (Islamic Development Bank, corresponding author), Fassil Eshetu (0000-0002-3952-7796, Arba Minch University), Hussen Ali (Arba Minch University), H Mohammed Ali (0000-0002-0333-4757, Arba Minch University) |
| Year | 2025 |
| Volume | 11 |
| Issue | 1 |
| Publication date | 2025-12-31 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Cogent Social Sciences (JOURNAL) |
| Journal identifiers | ISSN: 2331-1886 • E-ISSN: 2331-1886 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/23311886.2025.2590235 |
| OpenAlex | W4416596798 |
| Language | EN |
| References cited | 32 |
This study examines the determinants of financial inclusion in sub-Saharan Africa (SSA), using formal borrowing, formal saving and bank account ownership as key indicators. Based on cross-sectional data from 36,062 individuals in the 2022 World Bank Global Findex dataset, a multivariate probit model was employed for analysis. Descriptive findings indicate that 42.2% of urban residents have formal financial accounts compared to 31.2% in rural areas. Formal saving remains low, with only 18.1% of urban and 12.4% of rural residents saving through formal institutions, suggesting limited savings culture and accessibility barriers. In rural areas, distance to financial institutions (27.2%) and lack of money (56.5%) are major obstacles, compared to 14.4% and 47.7% respectively in urban areas. Additionally, lack of documentation affects 26.7% of rural and 20.1% of urban populations. Regression results reveal that income, education, employment, remittances, mobile ownership, internet access and urban residency significantly and positively influence all three financial inclusion indicators. A non-linear relationship between age and financial inclusion supports life-cycle theory. The study concludes that reducing barriers to access, improving infrastructure, expanding mobile and digital financial services, diversifying income sources and promoting sustainable employment both on-farm and off-farm can enhance inclusive financial development in SSA
Digital Inclusion · Financial inclusion · Financial literacy · Loan · Mobile payment · Multivariate probit model · Probit model · Rural area · Savings account · Economic Growth and Development · Microfinance and Financial Inclusion · Poverty, Education, and Child Welfare
The Global Findex Database 2021
The determinants of financial inclusion in Africa
FinTech and financial inclusion in emerging and developing economies
Determinants of Financial Inclusion in Africa
Determinants of Financial Inclusion
Socio‐economic determinants of financial inclusion
The role of financial inclusion in achieving finance-related sustainable development goals (SDGs)
| Citation velocity | historical |
|---|---|
| Highly cited | No |