Financial inclusion and bank profitability in Sub‐Saharan Africa

2020 ◽  
Author(s):  
Yussif Issaka Jajah ◽  
Ebenezer B. Anarfo ◽  
Felix K. Aveh
Keyword(s):  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Bank Profitability ◽  
Sub Saharan

Shadow economy in Africa: how relevant is financial inclusion?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Shadow Economy ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Development Indicators ◽  
Panel Data Estimation ◽  
Sub Saharan ◽  
Data Estimation ◽  
Toda And Yamamoto

Purpose This study aims to investigate the possible relationship between financial inclusion and shadow economy in selected African countries. Design/methodology/approach The study uses panel data estimation technique and Toda and Yamamoto causality approach. The data of selected African counties over a period of 2005–2015 are sourced from World Bank Development Indicators, International Monetary Fund International Financial statistics database and International Country Risk Guide. Findings The results show that financial inclusion reduces the size of shadow economy. The causality results show that there is a unidirectional causality moving from financial inclusion to shadow economy. The results demonstrate that a country with lower level of corruption and higher level of growth can benefit more in reducing the size of shadow economy through financial inclusion. Originality/value This study provides the first evidence of the link between financial inclusion and shadow economy from the Sub-Saharan Africa perspective. The study suggests that financial inclusion may be useful in affecting the size of shadow economy in Africa.

scholarly journals Factors That Matter for Financial Inclusion: Evidence from Sub-Sharan Africa - The Zimbabwe Case

2021 ◽  
Vol 10 (6) ◽  
pp. 48
Author(s):  
David Mhlanga
Keyword(s):  
Smallholder Farmers ◽  
Multinomial Logistic Regression ◽  
Multinomial Logit Model ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Farm Income ◽  
Smallholder Farming ◽  
Hand Off ◽  
Sub Saharan ◽  
The Government

The study intended to investigate the factors that are important in influencing the financial inclusion of smallholder farming households in Sub-Saharan Africa with a specific focus on Zimbabwe. Motivated by the fact that there is an increase in the evidence of the importance of financial inclusion in fighting poverty and the fact that by merely having a bank account, financial inclusion cannot be guaranteed, the study went further to interrogate factors that influence smallholder farmers to have a transaction account, to borrow and to have insurance. Since the dependent variable of financial inclusion had more than two categories, with three unordered categories, transaction account, savings/credit account, and insurance, the multinomial logistic regression was used to estimate the determinants of financial inclusion from these three categories of the dependent variable. The multinomial logit model results, with insurance as the reference category, indicated that the size of the household, transaction costs, gender and agricultural extension service were the factors influencing the demand for a household to open a transaction account. On the other hand, off-farm income and age of the household were the only two factors significantly influencing households to borrow. Therefore, it is imperative for, the government of Zimbabwe to come up with more policies that encourage farmers to participate in the formal financial market as financial inclusion can help to fight poverty and the general developments of societies.   Received: 28 April 2021 / Accepted: 31 August 2021 / Published: 5 November 2021

Turning on the township: financial inclusion in South Africa

2019 ◽  
Vol 31 (3) ◽  
pp. 420-446
Author(s):  
Louise Whittaker ◽  
Graunt Kruger
Keyword(s):  
Financial Services ◽  
Service Providers ◽  
Financial Inclusion ◽  
Subject Position ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Strategic Actions ◽  
Starting Point ◽  
Sub Saharan ◽  
Economic Engagement

Purpose The purpose of this paper is to explore practitioner and academic conceptualisations about what drives individuals (who are the target of financial inclusion efforts) to adopt and use financial services. It compares this with individual’s personal subjectivities to understand how the similarities and differences might contribute to problems in financial inclusion efforts. Design/methodology/approach To uncover such conceptualisations, a Foucauldian discourse analysis of three texts is conducted. Findings The analysis uncovers the ways in which financial subjects are produced. Important points of discontinuity are evident between texts, pointing to potential failures within financial inclusion constructs. Distilling aspects of continuity between texts shows up three kinds of subjects produced predicated on the site of economic engagement as owners of bodies, tangible property and intangible property. These subjects are shown to all share concerns with income and expense management. The analysis shows that subject positions and strategic actions (including the use of financial service providers) are mutually reinforcing, and that therefore financial subjects will engage only to the extent that the product or service enacts their subject position. With the financial subject as the starting point, it is possible to understand the use or rejection of particular financial products and services. Research limitations/implications Asset building is proposed as a field of activity not currently considered part of mainstream financial inclusion, questioning the terms on which individuals are to be financially “included”. Originality/value Approximately 2 billion people globally, and 66 per cent of adults in sub-Saharan Africa, are excluded from the formal financial system. While financial inclusion is considered beneficial, many projects face significant challenges. This suggests insufficient understanding of what drives individuals to adopt and use financial services. This paper makes a contribution by exploring the gap between academics, practitioners and individuals using a method that has not previously been applied in this field, and uncovering differences in understanding that have not previously been explored. The insights into financial inclusion in provided in this paper are original in the literature.

Financial Inclusion and Gender Inequality Reduction: Evidence from Sub-Saharan Africa

2019 ◽  
Vol 67 (3-4) ◽  
pp. 367-372
Author(s):  
Sylvester Ohiomu ◽  
Evelyn Nwamaka Ogbeide-Osaretin
Keyword(s):  
Gender Inequality ◽  
Financial Services ◽  
Negative Impact ◽  
Estimation Method ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Sub Saharan ◽  
The Government ◽  
And Gender ◽  
The Impact

Reduced inequality and gender equality are parts of the sustainable development goals (SDGs) towards global development, but the financial sector appears daunted in respect of financial inclusion for these noble goals. Concerns are more on gender inequality in the area of full utilisation of financial and human resources. Hence, this study investigated the impact of financial inclusion on gender inequality in sub-Saharan Africa. The study employed the generalised method of moments (GMM) estimation method on panel data on some countries in sub-Saharan Africa. The result of the study revealed that financial inclusion substantially reduced gender inequality. Financial inclusion access was found to drive down gender inequality more than usage. Female educational levels were found to have a substantial but negative impact on gender inequality. This study recommends that there is a need for an increase in commercial bank branches to increase accessibility to financial services. The government should increase its expenditure, and this should be channelled towards financial development and higher levels of education for females to improve financial literacy.

What determines financial inclusion in Sub-Saharan Africa?

2017 ◽  
Vol 8 (1) ◽  
pp. 8-18 ◽  
Author(s):  
Sydney Chikalipah
Keyword(s):  
International Development ◽  
World Bank ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Data Set ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Sub Saharan ◽  
Ssa Countries

Purpose The purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA). Design/methodology/approach The paper uses the World Bank country-level data from 20 SSA countries for the year 2014. Findings The empirical findings in this study indicate that illiteracy is the major hindrance to FI in SSA. The findings provide useful information to government agencies and international development organisations. Also, the findings can help accelerate and strengthen FI strategies among SSA countries. Research limitations/implications Some countries were excluded from the final analysis due to lack of data. Practical implications In the last two decades, there has been renewed interest in fighting financial exclusion in Africa. Therefore, this study provide evidence which clearly shows that enhancing literacy levels in a country can immensely contribute towards building the financially inclusive societies in the SSA region. Originality/value To the best of the author’s knowledge, this is the first study to empirically test the determinants of FI in SSA using the World Bank FI data set. Furthermore, this is the first attempt to estimate the determinants of FI with a combined data of SSA countries.

scholarly journals The Determinants of Commercial Bank Profitability in Sub-Saharan Africa

2009 ◽  
Vol 09 (15) ◽  
pp. 1 ◽  
Author(s):  
Valentina Flamini ◽  
Liliana Schumacher ◽  
Calvin A. McDonald ◽  
◽  
◽  
...  
Keyword(s):  
Commercial Bank ◽  
Sub Saharan Africa ◽  
Bank Profitability ◽  
Sub Saharan
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