Inclusion In Sub-Saharan Africa Research Articles

Digital technologies and financial inclusion in Sub-Saharan Africa

The study investigates the digital technology-financial inclusion nexus in 43 Sub-Saharan African countries between 2004 and 2019. The methodologies are the Generalized Method of Moment (GMM) to take care of double causality and country heterogeneity and IV-Tobit to take into account the limited range in the dependent variables. At all levels, digital technology measured by ICT indicators of the subscription rate of fixed and mobile telephone users, fixed broadband, internet users and a composite indicator of digitalization have positive significant effects on financial inclusion. A further robustness check is conducted by computing a composite indicator of financial inclusion to determine how it is affected by digital technology. The findings indicate that the rate of financial inclusion in Sub Saharan Africa rises with increasing digital technologies. There should be more investments in terms of promoting financial and technological infrastructures and also in the human capital sector since financial literacy can play an important part in promoting financial stability and inclusive finance in Africa.

The Synergy between Governance and Trade Openness in Promoting Female Economic Inclusion in Sub-Saharan Africa

The Synergy between Governance and Trade Openness in Promoting Female Economic Inclusion in Sub-Saharan Africa

The role of governance in the effect of the internet on financial inclusion in sub-Saharan Africa

The role of governance in the effect of the internet on financial inclusion in sub-Saharan Africa

Access to electricity and digital inclusion: evidence from mobile call detail records

Despite significant progress in mobile connectivity, a large number of individuals in Sub-Saharan Africa are at risk of being left behind, especially those living in rural areas and women. In this paper, we use an original data set of mobile call detail records from Senegal and exploit variations across plausibly similar rural municipalities to assess the impact of access to electricity on mobile connectivity. We find that access to mobile connectivity for rural users, measured by mobile telephony subscriptions or smartphone ownership, increases with access to electricity, with a stronger impact for women. The impact on usage is also positive, but stems from the increased volume of incoming communications: rural mobile users with access to electricity do not place more calls than those with limited access; rather, they receive more calls and text messages from urban areas, especially those with higher living standards. These findings suggest that access to electricity can be a significant driver of digital inclusion in Sub-Saharan Africa.

Financial inclusion and physical health functioning among aging adults in the sub-Saharan African context: Exploring social networks and gender roles.

It remains poorly understood how financial inclusion influences physical health functioning in later life in sub-Saharan African context and whether the association differs by gender and social relationships. We aim 1) to examine the associations of financial inclusion with functional impairment during older age in Ghana; and 2) to evaluate whether gender and social networks modify this association. The cross-sectional analyses are based on a sample (N = 1,201) of study participants aged 50 years and over (M = 66.5 years, SD = 11.9, 63.3% female) deriving from the 2016-2017 AgeHeaPsyWel-HeaSeeB Study. Ordinary least squares (OLS) regression analyses with interactions were performed to estimate the link between financial inclusion and functional health and how the association is modified by gender and older age social networks. The mean financial inclusion score was 1.66 (SD = 1.74) in women and 2.33 (SD = 1.82) in men whilst mean activities of daily living (ADL) score was 13.03 (SD = 4.99) and 14.85 (SD = 5.06) in women and men respectively. We found that financial inclusion was associated with decreases in ADL (total sample: β = -.548, p < .001; women: β = -.582, p < .001; men: β = -1.082 p < .001) and instrumental ADL (IADL) (total sample: β = -.359, p = .034; women: β = -.445, p = .026 but not in men). Social networks significantly moderated the association of financial inclusion with ADL such that the financially included who were embedded in a stronger constellation of social networks were 6% less likely to report ADL impairment compared to those with weaker social networks (β = -.062, p = .025). The study provides empirical evidence for a better understanding of the association between financial inclusion and physical health functioning in the context of later life social networks. Interventions for functional health through financial inclusion in sub-Saharan Africa should include improving interpersonal and social networks for older adult and also through gender lenses.

Shaping service delivery through faith-based service inclusion: the case of the Salvation Army in Zambia

Purpose While service inclusion principles raise the awareness of scholars to service that improves holistic well-being, little research explicitly investigates the spiritual dimensions of service inclusion. This study, therefore, aims to explore faith-based service inclusion in sub-Saharan Africa. Design/methodology/approach A qualitative case study of the Salvation Army’s Chikankata Services in Zambia was undertaken. Semi-structured interviews with the organization’s leaders and professionals were analyzed thematically. Findings Service inclusion pillars evince contextualized meaning and priority. In resource-constrained, vulnerable communities, faith-based service inclusion prioritizes two additional pillars – “fostering eudaimonic well-being” and “giving hope,” where existence is precarious, fostering (hedonic) happiness is of low priority. Findings reveal that pillars and processes are mutually reinforcing, harnessed by the individual and collective agency to realize transformative outcomes from service inclusion. Research limitations/implications This paper provides unique insight into faith-based service inclusion but acknowledges limitations and areas warranting further research. Practical implications The study yields important managerial implications. Service providers can use the framework to identify the contextual priority and/or meaning of service inclusion pillars and relevant reciprocal processes. The framework emphasizes the harnessing potential of individual agency and capability development for transformative well-being. Social implications Faith-based service inclusion, predicated on inclusion, human dignity and holistic well-being, has important implications for reducing the burden on scarce resources while building resilience in communities. Originality/value By examining a faith-based service in sub-Saharan Africa, this paper provides a holistic framework conceptualizing pillars, processes, agency and outcomes to extend Fisk et al.’s (2018) service inclusion pillars and to better understand the shaping of service delivery for service inclusion.

Information Technology and Gender Economic Inclusion in Sub-Saharan Africa

ABSTRACT This study investigates how ICT affects gender economic inclusion via gender parity education channels. We examine the issue using data from 49 countries in sub–Saharan Africa for the period 2004–2018 divided into: (i) 42 countries for the period 2004–2014; and (ii) 49 countries for the period 2008-2018. Given the overwhelming evidence of negative net effects in the first sample, an extended analysis is used to establish thresholds of ICT penetration that nullify the established net negative effects. We found that in order to enhance female labor force participation, the following ICT thresholds are worthwhile for the secondary education channel: 165 mobile phone penetration per 100 people, 21.471 internet penetration per 100 people and 3.475 fixed broadband subscriptions per 100 people. For the same outcome of inducing a positive effect on female labor force participation, a 31.966 internet penetration per 100 people threshold, is required for the mechanism of tertiary school education. These computed thresholds have economic meaning and policy relevance because they are within the established ICT policy ranges. In the second sample, a mobile phone penetration threshold of 122.20 per 100 people is needed for the tertiary education channel to positively affect female labor force participation.

Are Mobile Money and Financial Accounts Complementary? Evidence from the WAEMU Region

The recent mobile money innovation has experienced strong development and has been a key tool for financial inclusion in sub-Saharan Africa. Even holders of formal financial accounts have adopted it widely. Based on a sample of 6,891 households in the West African Economic and Monetary Union (WAEMU), we study complementarity between the use of mobile money and financial accounts. Our empirical results show that households generally perceive mobile money and financial accounts as substitutes. We also found that individuals for whom the two accounts are complementary have a high level of education and live in countries where formal financial and mobile money services are more accessible. Moreover, contrary to previous works, we show that among those holding two complementary accounts, almost 50% find that the formal financial account is a complement of mobile money. We attribute this preference to a very low use of financial services such as formal savings and borrowings in WAEMU.

The Impact of the Mobile Money on People’s Use of Financial Services in Sub-Sahara Africa

Abstract This paper details the impact of mobile money financial technology on financial inclusion in Sub-Saharan Africa. The research methodology used was descriptive research design with the use of secondary information sources to collect panel data. The research model had Financial Technology as the independent variable and the dependent variable was Financial Inclusion. The analysis of data was done using Stata 15. From the interpretation of the findings using the panel data on the 14 selected Sub-Saharan countries, it was found that the increase in the number of registered mobile money agents per 100,000 adults led to an increase in the total number of people using the financial services per 100,000 adults in Sub-Sahara Africa. Furthermore, the relationship between the registered mobile money agents per 100,000 adults and the total number of people using financial services was proven to be significant at a 5% level of significance.

Post-Covid-19 Recovery and Resilience: Leveraging Reforms for Growth and Inclusion in Sub-Saharan Africa

Covid-19 has exacerbated economic and social vulnerabilities across Sub-Saharan Africa (SSA). There is a risk that growth could be lower for longer, with a setback to development. Post-pandemic reforms thus become even more important, especially with constrained scope for fiscal and monetary stimuli. Reforms could boost per capita growth by an additional 0.3-1.3 percentage points, relative to the 1.9 percent average since 2010. Such growth would reduce per capita income doubling time from 37 years to about 22 years. Low-income countries stand to gain the most from reforms. The largest gains come from governance, products markets, and factor accumulation. Importantly, these reforms can be implemented in the post-pandemic environment characterized by weaker social and distributional outcomes.

Environmental degradation and female economic inclusion in sub-Saharan Africa: Effort towards Sustainable Development Goal 5

ABSTRACT The paper examines how environmental degradation affects female economic inclusion. Using Generalised Least Squares (GLS) and Instrumental Variable Approach in Two-Stage Least Squares (IV-2SLS), a panel of 22 countries in sub-Saharan Africa was analysed for the period 1990–2013. We observe that CO2 emission (metric per capita), CO2 emissions from electricity and heat, CO2 emissions from liquid and fuel consumption, and CO2 intensity (emission from solid fuels such as wood, charcoal, and coal) appear to negatively affect female economic inclusion. This implies that environmental deterioration disproportionally affects the labour force participation of women. The paper recommends that policies that are designed to mitigate environmental pollution should also incorporate measures to address gender exclusion. This effort will not only reduce environmental vulnerability but will also create a window for women empowerment in vulnerable situations. This focus holds the potential for the attainment of SDG 5 in SSA.

Mobile money for financial inclusion in Rwanda Application of endogenous switching regression model

As in many developing countries, mobile money was justified as a significant tool of financial inclusion in Sub-Saharan Africa. This study attempts to identify the factors motivating Rwandans to use the mobile money using the FinScope 2016 survey data collected from a random sample of 12,480 individuals. Considering that adopting and using mobile money is optional, the maximum likelihood method was used to estimate an endogenous switching regression model to account for sample selection and endogeneity. The results put forward the role of socioeconomic factors, wealth and productive assets on saving promotion. Mobile money contributes significantly on saving promotion; it is thus a factor to boost the financial inclusion and a leverage point of socioeconomic development through the enhancement of inclusive growth. Based on the research findings, it is recommended that exploring the mechanisms and strategies to put in place a cashless economic system would improve the socioeconomic transformation in Rwanda. [enter Abstract Body]

The Synergy between Governance and Economic Integration in Promoting Female Economic Inclusion in Sub-Saharan Africa

The debate on the need for Sub-Saharan African (SSA) countries to increase female participation in the economic sector has intensified the coming into force of the African Continental Free Trade Area (AfCFTA) and good governance. This study investigates the joint effects of governance (comprising of political, economic and institutional governance) and economic integration on female economic participation in sub-Saharan Africa (SSA). The study employs panel data of 42 countries in SSA spanning 1996-2020 for the analysis. The empirical strategy uses the dynamic System Generalized Method of Moments (SGMM) estimation technique. The findings reveal that the single effect of economic integration on female economic participation is necessary but not sufficient. Hence, complementing economic integration with good governance further enhances female economic participation in SSA. In general, the joint effect of economic integration and good governance should be a concern for policymakers to promote female economic inclusion.

Post-COVID-19 Recovery and Resilience: Leveraging Reforms for Growth and Inclusion in Sub-Saharan Africa

Covid-19 has exacerbated economic and social vulnerabilities across Sub-Saharan Africa (SSA). There is a risk that growth could be lower for longer, with a setback to development. Post-pandemic reforms thus become even more important, especially with constrained scope for fiscal and monetary stimuli. Reforms could boost per capita growth by an additional 0.3-1.3 percentage points, relative to the 1.9 percent average since 2010. Such growth would reduce per capita income doubling time from 37 years to about 22 years. Low-income countries stand to gain the most from reforms. The largest gains come from governance, products markets, and factor accumulation. Importantly, these reforms can be implemented in the post-pandemic environment characterized by weaker social and distributional outcomes.

Institutional Environment and Financial Inclusion in Sub-Saharan Africa

The purpose of this study is to analyze the effect of institutional factors on financial inclusion through the lens of the integration of mobile money. To achieve this objective, a multiple regression model is chosen, justified by the acceptance of the null hypothesis that the specified endogenous regressor, in our case GDP per capita, can indeed be treated as exogenous. The estimation of this model by Ordinary Least Squares (OLS) using data from the World Development Indicators (WDI) and the World Governance Indicators (WGI) databases reveals that the quality of regulation is, a priori, the only institutional factor affecting financial inclusion since it is a driver of financial inclusion in SSA. This result, which corroborates the theory of financial liberalization, makes it possible to identify economic policy implications supporting the implementation of incentive-based regulation in the banking system and the regulation of the mobile money sector.

Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria

Purpose—This research discusses emerging trends in financial inclusion, barriers and factors influencing mobile banking as an innovative solution for increasing financial inclusion in sub-Saharan Africa (SSA) with a specific focus on Nigeria. Design/methodology/approach—Using a qualitative meta-synthesis (QMS), an interpretivist research paradigm, authors provide an analytical tool for understanding the subject of inquiry by integrating findings from previous studies and relevant data from the reports of the Central Bank of Nigeria on emerging trends in financial inclusion. Findings—Three major factors emerged as drivers of mobile banking in Nigeria: (a) the ease of using mobile devices for personal banking transactions including prompt information about users’ financial transactions (savings and withdrawals) immediately through SMS (short message service) alert (easy management of my account); (b) the security/safety concerns of theft and cyber fraud; (c) social influence of friends, relatives, policy makers and social trends. Implications—In contextualizing mobile banking in SSA and in Nigeria in particular, this paper contributes to exploring the growth in the use of mobile banking by linking it with the “value in use” (VIU) perspective. This approach of the service dominant logic involves three sub-constructs (experience, personalization, and relationship), which all validate and support the proposed assertion that mobile banking is adopted by users because of utility expectancy (perceived usefulness), effort expectancy (perceived ease of use), and social influence expectancy (opinions of friends/relatives). Originality/value—This research, although qualitative in nature, validates information technology (IT) adoption theories/perspectives and enriches the “value in use” approach.

Thresholds of income inequality that mitigate the role of gender inclusive education in promoting gender economic inclusion in sub-Saharan Africa

PurposeThis study aims to provide the thresholds of inequality that should not be exceeded if gender inclusive education is to enhance gender inclusive formal economic participation in sub-Saharan Africa.Design/methodology/approachThe empirical evidence is based on the generalised method of moments and data from 42 countries during the period 2004-2014.FindingsThe following findings are established. First, inclusive tertiary education unconditionally promotes gender economic inclusion, while the interaction between tertiary education and inequality is unfavourable to gender economic inclusion. Second, a Gini coefficient that nullifies the positive incidence of inclusive tertiary education on female labour force participation is 0.562. Second, the Gini coefficient and Palma ratio that crowd-out the negative unconditional effects of inclusive tertiary education on female unemployment are 0.547 and 6.118, respectively. Third, a 0.578 Gini coefficient, a 0.680 Atkinson index and a 6.557 Palma ratio are critical masses that wipe out the positive unconditional effects of inclusive tertiary education on female employment. The findings associated with lower levels of education are not significant.Practical implicationsAs the main policy implication, income inequality should not be tolerated above the established thresholds for gender inclusive education to promote gender inclusive formal economic participation. Other implications are discussed in the light of sustainable development goals.Originality/valueThis study complements the existing literature by providing inequality thresholds that should not be exceeded for gender inclusive education to promote the involvement of women in the formal economic sector.

Digital finance as a mechanism for extending the boundaries of financial inclusion in sub-Saharan Africa: A general methods of moments approach

To address the Sustainable Development Goals of poverty eradication, hunger elimination, unemployment and inequality reduction, it is pertinent to pursue a sustainable all-inclusive financial growt...

Information Technology and Gender Economic Inclusion in Sub-Saharan Africa

This study investigates how ICT affects gender economic inclusion via gender parity education channels. We examine the issue using data from 49 countries in sub-Saharan Africa for the period 2004-2018 divided into: (i) 42 countries for the period 2004-2014; and (ii) 49 countries for the period 2008-2018. Given the overwhelming evidence of negative net effects in the first sample, an extended analysis is used to establish thresholds of ICT penetration that nullify the established net negative effects. We found that in order to enhance female labor force participation, the following ICT thresholds are worthwhile for the secondary education channel: 165 mobile phone penetration per 100 people, 21.471 internet penetration per 100 people and 3.475 fixed broadband subscriptions per 100 people. For the same outcome of inducing a positive effect on female labor force participation, a 31.966 internet penetration per 100 people threshold, is required for the mechanism of tertiary school education. These computed thresholds have economic meaning and policy relevance because they are within the established ICT policy ranges. In the second sample, a mobile phone penetration threshold of 122.20 per 100 people is needed for the tertiary education channel to positively affect female labor force participation.

Inequality thresholds, governance and gender economic inclusion in sub-Saharan Africa

ABSTRACTInequality and gender economic exclusion are major policy concerns facing sub-Saharan Africa in the post-2015 development agenda. This paper identifies ‘thresholds’ of inequality that should not be exceeded if governance is to promote gender economic participation. The research focuses on 42 countries in sub-Saharan Africa using annual data from 2004 to 2014. The empirical work utilises the Generalized Method of Moments. The following findings are established. First, inequality (i.e. the Gini coefficient) levels that completely nullify the positive effect of governance on female labour force participation are 0.708 for political stability, 0.601 for voice & accountability, 0.588 for government effectiveness, 0.631 for regulatory quality, 0.612 for the rule of law, and 0.550 for corruption-control. Second, inequality thresholds at which female unemployment can no longer be mitigated by governance channels include: 0.561 for political stability and 0.465 for the rule of law. Third, inequality levels that completely dampen the positive impact of governance on female employment are 0.608 for political stability, 0.580 for voice & accountability, 0.581 for government effectiveness, and 0.557 for the rule of law. As the main policy implication, for good governance to promote gender economic inclusion, inequality levels should not exceed such thresholds.