THE IMPACT OF FINANCIAL INCLUSION ON ECONOMIC GROWTH IN UGANDA: A CASE STUDY OF SELECTED DISTRICTS IN CENTRAL UGANDA

Abstract

The study was conducted to establish the impact of financial inclusion on economic growth in Uganda basing on selected districtsfrom Central Uganda which was the main objective. The other objectives of the study included; to establish a relationship between financial access and income inequality and to examine the role of quality financial services in poverty reduction in Uganda. A cross-sectional survey design was adopted,both quantitative and qualitativeapproaches were used in data collection and analysis. The study used purposive samplingtechniques to select a total of 194 respondents. Findings revealed that there is growing financial inclusion in Uganda and it has had an impact on economic growth, access to affordable financial services has promoted equitable distribution of income and growth benefits andquality financial services has led to poverty reduction in Uganda.The study recommends that more efforts should be geared towards expanding the coverage of financial services especially in the rural areas in order to shield the households from being exposed to income inequality and poverty. For financial services to reach scale, distribution networks have to be built in rural areas where there is a critical mass of customers needed for financial inclusion.