Factors Influencing Financial Inclusion for Social Inclusion in Selected African Countries

Abstract

The study investigated the determinants of financial inclusion in selected African countries. Researchers have found an extraordinarily strong positive association between social inclusion and financial inclusion; financial inclusion is the key to eradicating poverty and social exclusion as it presents an opportunity for people to benefit from financial services. A single data set was formed by combining four samples from the Democratic Republic of Congo, Eswatini, Kenya and South Africa. Data were obtained from surveys done by FinScope. FinScope Consumer Survey is a probability survey with an end-user focus (individual or household) on financial services and products. The FinScope Consumer Survey, done by the FinMark Trust, is uniquely aimed at increasing understanding of the informal financial product/service market. Probit regression models were estimated to find significant factors influencing financial inclusion in selected African countries. The linear probability model was used for the robustness check. The study found that age, education, marital status, bank branch accessibility, location, internet, salary, income, proof of residence, social networks, financial advice, gender and connectivity were significant in influencing financial inclusion. Governments must implement policies that enhance financial inclusion, in particular, ethnic groups, small communities and minorities. These policies will also lead to the reduction of poverty and the attainment of the UN Sustainable Development Goals.