Financial Inclusion and Economic Growth in the Central African Economic and Monetary Community

Abstract

This chapter investigates the effect of financial inclusion on economic growth in the Central African Economic and Monetary Community (CEMAC). The generalized moments method (GMM) was used to capture the effects of financial inclusion on growth indices. The results show that financial inclusion has relative effects on growth. The final public expenditure (information and communication technologies and education) of government is significant and has a relative effect on the level of growth. Trade in goods contributes significantly to improving the level of growth in the Central African Economic and Monetary Community. Digitalization policy must be intensified for more trades. To do this, new tools based on the use of mobile telephony and information and communication technologies (the digitalization of financial services) would be some avenues to explore in the short and medium-term for the amelioration of economic growth. The CEMAC institutions should review the whole regulatory system to provide clear direction, firm control, and confidence in the system using gender analysis.