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This paper analyses the role of governance quality in the relationship between the Internet and financial inclusion in Sub-Saharan African countries. The study uses data from the International Monetary Fund (IMF) database for indicators of financial inclusion, World Development Indicators (WDI) for Internet users and World Governance Indicators (WGI) for governance indicators from 2004 to 2020. Analyzing the data using the System Generalized Method of Moments (SGMM), the results show that the Internet can be effectively complemented with the quality of governance to improve financial inclusion. Thresholds of governance that are needed for the Internet to promote financial inclusion are provided. Policies aimed at reinforcing the quality of governance in SSA countries could help consolidate Internet infrastructure to promote Internet usage and, in turn, improve financial inclusion. Other policy implications are discussed. [ABSTRACT FROM AUTHOR]

A thriving literature exists about the role of financial inclusion in socio-economic development. Nevertheless, the environmental effects of financial inclusion are largely unknown in the literature, especially in sub-Saharan African countries. Therefore, this study explores the association between financial inclusion and CO2 emissions utilizing data from 23 sub-Saharan Africa for the period 2004–2019. Based on different estimation methods such as dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), canonical correlation regression (CCR), and an instrumental variable generalized-method of moment (IV-GMM), the results show that financial inclusion is responsible for a substantial increase in CO2 emissions. In addition, financial inclusion moderates economic growth, resulting in higher CO2 emissions. Alternatively, financial inclusion moderates renewable energy use to lower CO2 emissions. The outcomes also verify the presence of the Environmental Kuznets Curve hypothesis (EKC). This study proposes uniting financial inclusion and environmental policies as a strategy for reducing CO2 emissions in sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Development Studies is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Despite the growing literature on household wellbeing, little is known about the role of financial inclusion in explaining household wellbeing. Through the lenses of minority influence theory, this paper tested the power of financial inclusion (in terms of access, quality and usage) on household wellbeing using data from teachers in primary schools of central and western Uganda. By means of a questionnaire approach to collect data, the study adopted a cross-sectional research approach. 326 respondents were responsive from a sample of 377 which yielded 86.5% response rate. Quantitative data were analyzed using Statistical Program for Social Sciences (SPSS) and Analysis of Moment Structures (AMOS). Drawing on the survey results, the paper clearly demonstrates that financial inclusion underpinned informs household wellbeing significantly in Uganda. [ABSTRACT FROM AUTHOR]

The study was motivated by increased carbon emissions and high inequality in many of the countries in sub-Saharan Africa (SSA). In this study, we examine whether income inequality in SSA countries increases CO2 emissions, and also investigate empirically whether financial inclusion and institutional quality moderate this connection from the period 2000–2018. For the purpose of examining these links, two proxies for financial inclusion (FI) and an index of institutional quality (IQX) are used. Advanced econometric techniques such as cross-sectional augmented autoregressive distributed lags (CS-ARDL) and augmented mean group (AMG) techniques were used to account for robust, cross-sectional dependence and heterogeneity. The CD-ARDL results demonstrate that the inequalities in the short and long runs are essentially positive, indicating that environmental pollution would rise progressively as the wealth difference widened in the 32 selected SSA nations. The square of income disparity has a negative impact on CO2 emissions, albeit the magnitude varies in the short and long run. Income disparity continues to have a positive impact on CO2 emissions after interacting with financial inclusion in both the short and long run. The results of the interaction term (INEQ*IQX) show that institutional quality has a considerable negative effect on CO2, implying that institutional quality has a major impact on the inequality-CO2 nexus. The robustness of the models is tested using AMG, and the results are congruent with the CS-ARDL estimated results. Hence, based on our findings, we recommend several measures to reduce CO2 emissions in SSA countries. [ABSTRACT FROM AUTHOR]

Purpose: The main purpose of this paper is to establish whether trust plays a significant mediating role in the relationship between access to microcredit and survival of young women microenterprises in under-developed financial markets in sub-Saharan Africa. The main focus of this paper is to specifically test whether relational social capital built by young women from homogeneous and heterogeneous groups can be more effective in promoting economic exchange in under-developed financial markets since interpersonal trust has recently been found to harbor group collusion, especially among kins. Overall, the paper distinguishes trust among individuals based on their age, gender and ethnic diversity. Design/methodology/approach: This study used structural equation model to test whether trust significantly mediates the relationship between access to microcredit and survival of young women microenterprises using Analysis of Moments Structures (AMOS) based on recommendations by Hair et al. (2022) and Baron and Kenny (1986). Findings: The findings from this study revealed that trust significantly and positively mediate the relationship between access to microcredit and survival of young women microenterprises in under-developed financial markets in sub-Saharan Africa. Trust developed from relational social capital among young women from homogeneous and heterogeneous groups create a stronger basis for economic exchange in under-developed financial markets. Research limitations/implications: While this study generates a positive evidence on the impact of access to microcredit on survival of young women microenterprises, the results cannot be over emphasized and generalized because the data were collected from only a single developing country. Future research may extend the current study to include other developing countries to make a more justified comprehensive analysis. Practical implications: The findings from this study highlights the importance of using a blend of social policy guided by norms combined with formal regulations as an informal contract enforcement mechanism to achieve efficient economic exchange in under-developed financial markets. Relational social capital formed on the basis of informal norms among groups from diverse population can supplement formal laws to enforce contractual obligations in microcredit access, especially among youthful microentrepreneurs, who seems to have stronger relational behaviors than adults. Financial institutions such as banks should use informal contract enforcement system to increase the scope of financial inclusion of young microentrepreneurs, especially in unbanked rural communities in sub-Saharan Africa, Uganda inclusive where formal laws are weak and sometimes not functional. The findings also show that younger people have a stronger relationship behavior than adults. Therefore, policy should create structures that can promote social activities among youth. Governments in sub-Saharan Africa, Uganda inclusive through their respective Ministry of Gender, Labour and Youth Affairs should create youth clubs that can increase interaction and relational social capital among the younger population to derive economic empowerment. sub-Saharan African governments, Uganda inclusive should rely more on social policy based on relational social capital as a missing link to promote and achieve economic development. Originality/value: This paper provides an evidence on the unique role of age, gender and ethnicity in information sharing and exchange based on social policy in the financial market to limit group collusion. The authors indicate that diversity in relational social capital among young women microentrepreneurs prohibit strategic defaults, which promotes access to microcredit for survival of women micro small and medium enterprises (MSMEs) through socialization. High level of interaction among younger women microentrepreneurs from homogeneous and heterogeneous groups allow them to close the information gap to timely meet borrowing contractual obligations to derive economic benefits. The paper shows that younger women have more trust than older women while searching for economic value through socialization. In fact, social policy can wholly supplement formal policy to promote growth and survival of young women microenterprises, especially in sub-Saharan Africa, Uganda inclusive. [ABSTRACT FROM AUTHOR]

Agriculture plays a vital role in driving economic output and employment in SubSaharan African (SSA) countries. Despite some progress, agricultural productivity in SSA still lags behind other regions. Limited access to finance remains a significant impediment to improving agricultural productivity in Sub-Saharan Africa. This paper investigates the effect of financial proximity on agricultural productivity in Sub-Saharan African countries. The study primarily employs the system GMM estimator, chosen to address the endogeneity issue typical in macro panel data. This method is also wellsuited to our study because it accommodates a high number of cross-sections relative to the number of periods within each cross-section. Additionally, the IV-2SLS method is employed to check the robustness of the findings. The study uses an unbalanced panel for the 36 African countries with data for the period 2004-2019. Our findings show that increasing the financial proximity favors agricultural productivity in SSA countries. Specifically, the number of commercial bank branches (CBB) and the number of automated teller machines (ATM) per 100 000 adults, as indicators of financial proximity, have positive and significant effects on agricultural value added per worker in SSA. Additionally, our findings show that rainfall, arable land, and institutional quality are robust determinants of agricultural productivity. The positive effects of the number of CBB and the number of ATM are even more pronounced on agricultural productivity when coupled with strong institutional quality. Our findings suggest that improving financial services' accessibility in rural areas, coupled with enhanced institutional quality, regular rainfall, ample arable land, and increased access to water and land, are pivotal steps for achieving sustainable enhancements in labor productivity. This, in turn, leads to increased returns through value-added growth and expanded employment in the agricultural sector. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of financial inclusion on inclusive human development in a panel of 35 countries in sub‐Saharan Africa for the years 2011, 2014 and 2017 from a gender perspective. Different methods, including fixed effect and random effect models, Tobit and quantile regressions, are used for the estimates. We find that financial inclusion improves inclusive human development. In addition, the effect of women's financial empowerment is stronger than that of men. Moreover, we find a complementary effect of financial account ownership and mobile money usage in the achievement of inclusive human development. Furthermore, the increasing effects of financial inclusion are greater in countries with lower inclusive human development than those with higher inclusive human development. African governments should therefore improve financial inclusion, particularly female financial inclusion, to achieve higher inclusive human development. [ABSTRACT FROM AUTHOR]

In semi-arid Northern Ghana, smallholder farmers face food insecurity and financial risk due to climate change. In response, the Village Savings and Loan Association (VSLA) model, a community-led microfinance model, has emerged as a promising finance and climate resilience strategy. VSLAs offer savings, loans, and other financial services to help smallholder farmers cope with climate risks. In northern Ghana, where formal financial banking is limited, VSLAs serve as vital financial resources for smallholder farmers. Nevertheless, it remains to be seen how VSLAs can bridge financial inclusion and climate resilience strategies to address food insecurity. From a sustainable livelihoods framework (SLF) perspective, we utilized data from a cross-sectional survey of 517 smallholder farmers in northern Ghana's Upper West Region to investigate how VSLAs relate to food insecurity. Results from an ordered logistic regression show that households with membership in a VSLA were less likely to experience severe food insecurity (OR = 0.437, p < 0.01). In addition, households that reported good resilience, owned land, had higher wealth, were female-headed, and made financial decisions jointly were less likely to experience severe food insecurity. Also, spending time accessing the market increases the risk of severe food insecurity. Despite the challenges of the VSLA model, these findings highlight VSLAs' potential to mitigate food insecurity and serve as a financially resilient and climate-resilient strategy in resource-poor contexts like the UWR and similar areas in Sub-Saharan Africa. VSLAs could contribute to achieving SDG2, zero hunger, and SDG13, climate action. However, policy interventions are necessary to support and scale VSLAs as a sustainable development and food security strategy in vulnerable regions. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Business Administration & Social Studies is the property of Aves Yayincilik Ltd. STI and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines the relationship between financial inclusion, institutional quality, and bank stability in sub-Saharan Africa. Using a sample of 48 countries from 2002 to 2021, the study employs the Prais-Winsten and Hansen (2000) panel threshold estimation techniques. The findings suggest that financial inclusion, measured by account ownership, ATMs, borrowers, depositors, and bank branches, positively impacts bank stability, except for bank branches which have a negative effect. Institutional quality is found to have a significant and positive impact on bank stability, indicating its importance in reducing transaction costs and addressing asymmetric information. The study also explores the moderating role of institutional quality, revealing that the presence of institutions enhances the positive effects of ATMs, borrowers, and depositors on bank stability, while negatively impacting the relationship between bank branches and stability. Moreover, the study identifies threshold effects, with certain indicators showing different impacts on bank stability below and above specific thresholds. Policy recommendations include the need for strong institutions to promote bank stability, fostering financial inclusion in the presence of institutions, and implementing strategic reforms to increase the number of ATMs, borrowers, and depositors. Regulators are urged to focus on developing more robust institutions to enable the positive impact of borrowers and bank branches on bank stability in sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

This study assesses the role of mobile money innovations on income inequality and gender inclusion in 42 sub-Saharan African countries from 1980 to 2019 using interactive quantile regressions. It finds that, first, income inequality unconditionally reduces the involvement of women in business and politics. Second, mobile money innovations interact with income inequality to have a positive impact on women in business and politics. Third, the net effects of mobile money innovations on gender inclusion through income inequality are consistently negative. Fourth, as the positive conditional or interactive effects and negative net effects are consistent across the conditional distribution of gender inclusion, thresholds at which mobile money innovations can completely dampen the negative effect of income inequality on gender inclusion are provided. Therefore, policymakers should work toward improving conditions for mobile money innovations. They should also be aware that reducing both income inequality and enhancing mobile money innovations simultaneously leads to more inclusive outcomes in terms of gender inclusion. [ABSTRACT FROM AUTHOR]

This research aims to investigate how financial inclusion affects the expansion of the economy in sub-Saharan Africa. It was conducted through a quantitative research design to analyse the interactive effects of financial inclusion and human capital on this growth. The research was conducted in 47 African countries between 2010 and 2020. The study found that financial inclusion and economic growth were positively correlated using a Driscoll Kray error estimate approach. Financial inclusion has a beneficial effect on economic growth through human capital. To boost economic growth in sub-Saharan Africa, the agenda for financial inclusion must be continuously improved, and human capital development must be furthered. [ABSTRACT FROM AUTHOR]

This study analyzes how fintech credit affects bank lending in Sub-Saharan Africa (SSA) and how this relationship is influenced by financial inclusion measured by bank branch networks. We utilized the system GMM to examine data spanning 19 SSA economies from 2013 to 2019. This study finds that fintech credit has a mixed effect on bank lending in SSA, depending on how it is measured. When fintech is measured by total alternative credit (fintech and Bigtech credit), there is a negative and significant relationship between Fintech and bank lending in SSA economies, suggesting that some borrowers are shifting towards fintech options. However, we observe a positive and significant relationship when we focus solely on fintech credit, suggesting that fintech can complement traditional bank lending, potentially by expanding access to financial services. Furthermore, this study underscores the importance of the presence of physical banks. Fintech lending growth has a negative net effect on bank lending when traditional banks reduce their branch network. This suggests that physical branches remain crucial for financial inclusion, particularly in areas with a limited digital infrastructure. These insights offer valuable guidance for policymakers and industry leaders seeking to promote financial inclusion and stability in SSA's evolving financial landscape. Impact statement: This study investigates the impact of credit provided by fintech players on lending activities of traditional banks and the moderating effect of financial inclusion proxied by bank branch density on this nexus. Using data from 19 sub-Saharan African economies and GMM for estimation, the study identified a mixed effect of fintech on bank lending. When fintech is measured by total alternative credit (fintech and Bigtech) the results show that fintech tends to reduce bank lending, suggesting that some borrowers are shifting towards fintech products potentially competing with traditional banks. However, fintech credit alone show a positive effect, suggesting a complimentary effect of fintech activities to enhance financial access. The study also shows that fintech lending negatively affects bank lending when banks reduce branch networks, emphasizing the importance of continued physical bank branches. Overall, this research highlights the complex interplay between fintech and traditional banking in Sub-Saharan Africa, providing valuable insights for policymakers and industry leaders seeking to promote financial inclusion and stability in the region. [ABSTRACT FROM AUTHOR]

This document is a compilation of research articles and papers that examine the impact of financial inclusion and technology on tax performance and economic growth in Sub-Saharan Africa. The studies analyze various factors such as institutions, colonialism, gender, digital financial inclusion, taxation, revenue mobilization, income inequality, and the use of information communication technology in tax administration. The research suggests that improving financial inclusion and technology can have positive effects on tax revenue and economic development in the region. However, further research is needed to fully understand the complexities and potential challenges associated with these factors. [Extracted from the article]

This study analyzes the factors that account for the difference in access to financial account between women and men. To do so, a probit model and Fairlie's ([2005]. An extension of the Blinder-Oaxaca decomposition technique to logit and probit models. Journal of Economic and Social Measurement, 30(4), 305–316. ) decomposition method were applied to survey data collected in 2021 in 25 sub-Saharan Africa countries. The results show that, on average, 43.73% of men have access to a financial account compared to only 32.7% of women. The analysis shows that the contribution of factors to the difference varies according to country's level of development. The difference is explained more by observable characteristics in high-income countries (79.6%) than in low-income countries (65%). Secondary school education is the most decisive factor but the contribution varies according to country development level. In terms of implications, financial inclusion policies for women need to be adapted according to country realities. Thus, in order for women to benefit from financial inclusion policies, it is important to encourage the education of women at least at secondary level by reducing or even abolishing school fees, and also creating a conducive environment to keep women in the education system for as long as possible. [ABSTRACT FROM AUTHOR]

The effects of financial inclusion and institutional quality on living standard in developing countries are documented in the empirical literature but results are inconclusive. This study examines the interaction effect of financial inclusion and institutional quality on living standard in sub-Saharan Africa. Using panel data on 45 Sub-Saharan African countries from 2004 to 2021, the study employed the two-step system Generalized Method of Moments for the analysis while quantile regression was deployed to assess the reliability of the GMM estimations. Two interaction variables (control of corruption interacting with number of ATMs, and regulatory quality interacting with number of ATMs) were used. The empirical results indicate that the interaction between control of corruption and number of ATMs have a significant and negative effect on living standard; while the interaction between regulatory quality and the number of ATMs have a significant positive effect on living standard in subSaharan Africa. The results are robust to the alternative estimation technique employed. The study therefore, advocates that governments in various Sub-Saharan African countries should initiate and implement measures aimed at curtailing corruption and improve regulatory quality in order to enhance financial service inclusivity and through that improve the living standard in the region. [ABSTRACT FROM AUTHOR]

Energy is a crucial resource which can contribute towards the development and growth of a nation. Therefore, energy poverty can significantly undermine economic, environmental, and social progress of a country. Sub-Saharan Africa (SSA) is the most deprived electricity region across the world, and hence, the energy poverty situation is more severe here compared to other regions. This paper intends to examine the determinants of energy poverty in SSA region considering data from 2004 to 2019. The study specifically focuses on the role of financial inclusion and education in eradicating energy poverty of this region with trade openness, economic growth, and natural resources being used as control variables. The study employs advanced econometric techniques such as pooled OLS, fixed effect model and Driscoll–Kraay standard error methodology. The findings demonstrate that financial inclusion and education significantly reduce energy poverty as both variables increase access to electricity and access to clean cooking fuel and technologies. Trade openness and natural resources have been found to be increasing energy poverty in SSA, while economic growth tends to alleviate it. Based on the above findings, the study provides several policy directions for effective elimination of energy poverty by the means of financial inclusion and education improvement in SSA region. [ABSTRACT FROM AUTHOR]

There is no consensus on the key drivers of financial inclusion due to variation in the socioeconomic features of countries, use of indicators and research methods. The main objective of this study is, therefore, to empirically examine the key drivers of financial inclusion across 26 selected Sub-Saharan African (SSA) economies for the period between 2000 and 2019, using a system generalized method of moments (GMM). A principal component analysis (PCA) is applied to construct a composite index of financial inclusion to address the multi-dimensional nature of the variable. The findings of the study indicate that both the macroeconomic and microeconomic factors influence the level of financial inclusion of the SSA countries. Specifically, the lag effect, economic growth, financial stability, inflation, financial deepening, liquidity, profitability, and bank efficiency are important drivers of financial inclusion in the SSA region. It is therefore important for policy makers and regulators to consider these factors while developing policies and strategies that foster access to financial products and services and ensure financial inclusion in the region. [ABSTRACT FROM AUTHOR]

The purpose of this study is to complement extant literature by examining how mobile money innovations can moderate the unfavorable incidence of female unemployment on female doing of business in 44 countries from sub-Saharan Africa for the period 2004 to 2018. The empirical evidence is based on interactive quantile regressions. The employed doing business constraints are the procedures a woman has to go through to start a business and the time for women to set up a business, while the engaged mobile money innovations are: (i) registered mobile money agents (registered mobile money agents per 1000 km2 and registered mobile money agents per 100,000 adults) and (ii) active mobile money agents (active mobile money agents per 1000 km2 and active mobile money agents per 100,000 adults). The hypothesis that mobile money innovation moderates the unfavorable incidence of female unemployment on business constraints is overwhelmingly invalid. The invalidity of the tested hypothesis is clarified, and the policy implications are discussed. [ABSTRACT FROM AUTHOR]

The threat posed by climate change has become a reality in the public sphere. This research looks at how financial inclusion affects carbon dioxide emissions in Sub-Saharan Africa (SSA) countries from 2004 to 2017. The panel autoregressive distributed lag and panel granger causality approaches are used to determine if financial inclusion reduces CO2 emissions in Sub-Saharan African countries. The PARDL results demonstrated that, over time, financial inclusion, GDP per capita, industrialization, and trade openness have a substantial beneficial influence on carbon emissions in SSA countries. The result suggests that these considered variables contribute significantly to CO2 emissions while urbanization and energy intensity reduce CO2 emissions in SSA. Financial inclusion and other control variables have no significant impacts on carbon emission in SSA in the short run. The findings of the granger causality test further confirm the direction of causality, revealing that financial inclusion, GDP per capita, industrialization, energy intensity, and trade openness, granger cause carbon emission in SSA countries. Meanwhile, carbon emission does not granger cause any of the considered factors. The study concludes that financial inclusion increases carbon emission in SSA countries, given the poor state of financial inclusion. Our findings advocate for a policy framework that would focus efforts on connecting financial inclusion measures with environmental legislation across SSA nations. [ABSTRACT FROM AUTHOR]

Executive Summary: The study examines the role of economic freedom in the relationship between financial inclusion and stability in sub‐Saharan African economies. By employing the System General Method of Moment and data from 39 sub‐Saharan African countries between 2004 and 2017, the study examines whether economic freedom (i.e., financial and business freedom) conditions the effect of financial inclusion on stability. Results from the study show evidence of a positive impact of financial inclusion on financial stability in sub‐Saharan African economies. Again, the results depict that financial inclusion could better enhance financial stability in economies with a high level of economic freedom (i.e., financial and business freedom). The results suggest that policymakers should allow financial institutions to operate with the level of freedom required to provide services at the lowest possible price. Further, it is recommended that policymakers should ensure that administrative requirements are minimal, bureaucracy costs are lesser, and licensing regulations for startups and expansion of existing firms are friendly. With this, associated increases in business and financial freedom would have promising implications for the relationship between financial inclusion and stability. Managerial Implications of the Study: This research is very vital for firms in both the financial and nonfinancial. Specifically, managers of firms in the financial sector can embrace the level of financial freedom that would be allowed by the government, to come up with new and inclusive financial products, while putting in measures not to endanger the stability of the financial sector. Managers in the business sector could also take advantage of the business freedom that would be allowed by the government to diversify business operations, increase profitability and avoid causing nonperforming loan problems to banks. Originality/Value: The study provides the first insight into how economic institutions condition the effect of financial inclusion on financial stability, which has not been previously studied. [ABSTRACT FROM AUTHOR]

This study examined the impact of AML regulations on financial inclusion in Sub-Saharan Africa (SSA). Again, the study assessed whether the level of AML regulatory effectiveness determines the impact of AML regulations on financial inclusion. The study employed the Systems Generalized Methods of Moments (SGMM) estimation technique to assess the influence of AML regulations on financial inclusion for a panel of 44 SSA countries from 2012–2019. Data is sourced from the World Development Indicators and the Basel Institute on Governance. The study showed that AML regulations negatively impact accounts ownership and the number of commercial bank branches whereas AML regulations have a positive impact on the number of commercial bank depositors, the number of commercial bank borrowers, and the number of ATMs. Further, the study provided evidence that AML regulations positively impact the number of commercial bank branches and the number of borrowers in low-effectiveness countries (countries with AML regulations below the mean). In contrast, the study reported that AML regulations have a negative impact on accounts ownership for high-effectiveness countries (countries with AML regulations above the mean), while AML regulations have a positive influence on the number of depositors, the number of commercial bank borrowers and number of ATMs above the mean. The findings of the study imply that the impact of AML regulations on financial inclusion depends on the proxy of financial inclusion and also the extent of AML regulations in SSA countries. The uniqueness of this study is its specific focus on assessing the impact of AML regulations on financial inclusion in SSA. [ABSTRACT FROM AUTHOR]

The goal of this study is to analyse the role of financial inclusion, governance, and remittances on growth in Sub-Saharan African countries (SSA), as well as the moderating influence of the role of financial inclusion on the remittances-growth nexus, using panel data spanning 1996-2020. Data were collected through secondary sources, including World Bank and IMF reports for the period 1996-2020. By using a principal component analysis method, we constructed composite FI indexes to measure the degree of FI. Cross-sectional dependence, slope homogeneity, and pooled mean grouping (PMG) are employed to evaluate the stated objectives. The study findings showed that remittances have a significant positive relationship with economic growth, and that positive financial inclusion moderates the remittance-growth nexus in SSA countries. Given the findings that the level of governance has an adverse influence on growth, hence stakeholders should improve financial infrastructure, which provides the underlying instrument for financial inclusion, and protect customers by instituting controls and procedures for reporting, fairness, and resorting to SSA countries. Governments should also promote the larger global remittances agenda, which includes leveraging remittances for better consumer and business financing, and exposure to global financial markets through refinancing and the issue of diaspora bonds. [ABSTRACT FROM AUTHOR]

Many earlier development finance studies have attempted to assess the relationship between financial inclusion and economic growth. However, the findings of these studies vary from economy to economy and region to region due to various social and economic factors. We, therefore, deemed it pertinent to examine the relationship between financial inclusion and economic growth while further identifying the direction of causality between the two variables in twenty-six (26) Sub-Saharan African (SSA) economies using annual secondary data over the 2000–2019 period. In our paper, we used the principal component analysis (PCA) technique to develop a single composite index to proxy financial inclusion while adopting panel unit root, system generalised method of moment (GMM), and ARDL cointegration tests to assess the stationarity properties, assess the factors that affect economic growth, and examine the long-run relationships between financial inclusion and economic growth, respectively. In addition, a Granger non-causality test is used to verify the direction and magnitude of causality. Our study revealed that financial inclusion and economic growth share a strong long-run relationship and that there is bi-directional causality, indicating synergy between these two variables. In order to ensure sustainable economic growth, we thus recommend that developing countries develop macroeconomic policies that will promote financial inclusion while enhancing the functioning and regulation of the domestic financial markets to ensure that all citizens are catered for in the available instruments, products, and service offerings. Within the same policy framework, efforts must be made to further support productive sectors of the economy to ensure economic growth. [ABSTRACT FROM AUTHOR]

Financial inclusion has garnered global attention due to the detrimental effect that financial exclusion has on tackling socioeconomic challenges such as poverty. Using a dynamic panel approach, our study examines the drivers of financial inclusion in the context of Sub-Saharan Africa (SSA) over the period 2000 to 2017. We discover that financial globalization and literacy rates positively and significantly drive financial inclusion. We also find that rural population growth has a profound adverse impact on financial inclusion. The study further reveals that bank profitability, bank stability, and economic growth have a negative albeit insignificant effect on financial inclusion. The positive effect of financial globalization on financial inclusion has important policy implications for Sub-Saharan African countries. In this respect, the integration of the local financial system with global financial markets will facilitate efforts to achieve financial inclusion in the region. [ABSTRACT FROM AUTHOR]

The main aim of this paper is to determine the impact of financial inclusion on energy poverty alleviation. It also interrogates whether institutional quality and climate change risk significantly influence the financial inclusion-energy poverty alleviation link using balanced panel data from 34 Sub-Saharan African countries from 2004 to 2021. Evidence from Discroll-Kraay Fixed Effects and Two-Step Instrumental Variable Generalized Method of Moments (2SIV-GMM) depicts heterogeneous energy poverty-alleviating impact of financial inclusion, demonstrating that financial inclusion is more instrumental in lower-income than lower-middle-income countries. Also, the results indicate a significant positive moderating role of institutional quality and a detrimental effect of climate change risk on financial inclusion-energy poverty alleviation nexus. Nevertheless, Dynamic Panel Threshold Regression results reveal threshold effects of financial inclusion, institutional quality, and climate change risk on energy poverty alleviation. The paper professes that financial regulations in allocating green resources would aid in alleviating energy poverty in Sub-Saharan Africa. • Investigates the impact of financial inclusion on energy poverty alleviation. • Financial inclusion reduces energy poverty, with fundamental impact in lower-income countries. • Institutional quality amplifies positive financial inclusion-energy poverty alleviation link. • Climate change risk is detrimental on financial inclusion-energy poverty alleviation nexus. • Effective financial regulations would aid in alleviating Sub-Saharan Africa's energy poverty. [ABSTRACT FROM AUTHOR]

Financial inclusion has been identified as an essential tool for sustainable development in Sub-Saharan Africa (SSA). The low level of financial inclusion in SSA has been attributed to various factors such as low income, high level of poverty, low literacy rate, and inadequate infrastructure. This research investigates the long-run and short-run relationships between financial inclusion and sustainable development in SSA using a panel vector error correction model (VECM) regression method. The study uses cross-sectional data from 48 countries in SSA, covering the period from 2000 to 2021. The model considers the number of Bank branches per 100,000 adults, automated teller machines (ATMs) (per 100,000 adults), and borrowers from commercial banks (per 100,000 adults) as proxies of financial inclusion, while the sustainable development is proxied by human development index (HDI). In addition, the model controls for the influence of GDP per capita and health expenditure. The regression results show that financial inclusion has a positive and statistically significant association with the level of sustainable development in the SSA region. In the long run, a 1% increase in financial inclusion is associated with a 0.62% increase in sustainable development, while the short-run Wald test indicates that each of lagged values of all independent variables jointly Granger causes changes in HDI, suggesting that financial inclusion variables help predict short-run deviation in HDI. This study's findings reveal significant statistical evidence of financial inclusion variables in promoting sustainable development. Policymakers can use this information to develop policies that aim to increase GDP per capita, improve access to healthcare services, and financial institutions to promote sustainable development. [ABSTRACT FROM AUTHOR]

A large body of research shows that mobile money through its agent networks can potentially increase financial inclusion, especially in the unbanked rural regions of the developing world. This study intends to establish whether agent liquidity has a significant moderating effect in the relationship between mobile money services and financial inclusion of the unbanked poor population in rural sub-Saharan Africa. The data were collected from mobile money users through a cross-sectional approach using a semi-structured quantitative questionnaire and Analysis of Moment Structures was used to test for the moderating effect of agent liquidity between mobile money services and financial inclusion. The results revealed a significant moderating effect of agent liquidity in the relationship between mobile money services and financial inclusion of the unbanked poor population in rural sub-Saharan Africa with data collected from rural Uganda. Agent liquidity enhances access to and usage of mobile money services by 27 percentage points to spur financial inclusion among the unbanked rural poor population. Similarly, agent liquidity has a direct significant effect on access to and usage of mobile money services among the unbanked rural poor population. Overall, the results showed that agent liquidity plays a significant and positive moderating role between mobile money services and financial inclusion. The findings from this study can help mobile money providers to increase cash float amounts to boost agent liquidity to meet instant cash-in and cash-out demands of customers. Besides, regulations on mobile money agents should be loosen to allow more village "dukas" (small village shops) to offer mobile money financial services to crowd-in more unbanked rural poor population. [ABSTRACT FROM AUTHOR]

The purpose of this current study is to provide a new framework for assessing the impact of financial inclusion on environmental quality in Sub‐Saharan Africa countries. To this end, the impact of economic growth, education, natural resource usage, and remittances on carbon emissions, as well as financial inclusion, is evaluated over the 2004–2020 period using second generation panel data methods, namely, CS‐ARDL and the following findings are found. Firstly, financial inclusion leads to enhanced carbon emissions. Secondly, economic growth leads to an increase in carbon dioxide emissions. Thirdly, an improvement in education promotes the quality of the environment. Fourthly, the depletion of natural resources has a harmful effect on the environment. Fifthly, remittances result to an increase in carbon emissions. On the basis of these findings, policy recommendations are made to assist the aforementioned countries in achieving their sustainable development goals. [ABSTRACT FROM AUTHOR]

Monetary policy ensures the financial system stabilization. Financial inclusion, characterized by the access and use of available financial services (credit, savings, payments, insurance at a low cost), by a broader population, may explain the effectiveness of the monetary policy, especially in developing countries. The objective of this study is to carry out a comparative analysis between the countries of Sub-Saharan Africa (SSA) and the countries of Latin America and the Caribbean (LAC), on the causal relationship between financial inclusion and monetary policy, as well as to assess the impact of financial inclusion over monetary policy. To support our study, we applied the panel vector autoregressive (PVAR) methodology, simple panel data models, and a feasible generalized least squares (FGLS) model. Results provide strong evidence of the existence of reverse causality between financial inclusion and monetary policy in both SSA and LAC, with monetary policy facilitating financial inclusion in both regions. Financial inclusion increases the effectiveness of monetary policy in SSA, while for LAC financial inclusion improves the efficiency of monetary policy. Thus, increased access to and use of financial services increase the efficiency of monetary policy in controlling inflation. Governments are encouraged to design or enhance policies that expand financial services, as well as to promote investment in financial inclusion in developing countries, to maintain the monetary system stability. [ABSTRACT FROM AUTHOR]

Several factors determine the stability of a financial system. The main objective of this study is, thus, to empirically examine the key drivers of financial stability in the Sub-Saharan African (SSA) economies for the period of 2000 to 2019 using a dynamic panel Generalised Method of Moments (GMM). As financial inclusion and institutional quality broadly comprise of multiple individual measures, we constructed a composite index to proxy and represent each variable, respectively, which was then used later in the regression model to assess their effect on financial stability in the sampled economies. The findings of the study indicated that the lag effect and financial inclusion are the major positive drivers of financial stability in the SSA economies. Institutional quality, financial technology adoption and global financial crises also reflected a negative impact on the stability of a financial system in the region. Other variables seem to have no impact in the region. These findings underpin the need for policy makers and regulators to formulate and adopt macroeconomic policies that include more people in the financial system and markets, so that risks are spread over a greater populous, thereby sustaining financial stability. In addition, our scholarly contribution is that we highlight the possibilities of a trade-off between financial regulation, inclusion and digitalisation versus financial stability, which is an underresearched phenomena in financial studies. [ABSTRACT FROM AUTHOR]

Growing evidence suggests that credit constraint or the inability of rural farmers to access financial instruments remains a binding constraint to enhanced productivity in sub-Saharan Africa. We complement this evidence by exploring the contribution of credits to agricultural development with a particular emphasis on the structure of the credit market, captured by agricultural credits, credit to households and firms engaged in agricultural production, and domestic credit to the private sector. Employing advanced panel data estimation techniques to account for endogeneity and cross-sectional dependence in a panel of West African countries, we find evidence supporting the supply leading and demand following hypotheses. We argue that targeted policy reforms that increase agricultural credits and credit to firms engaged in agricultural activities might be more effective in increasing agricultural productivity. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of financial inclusion on banks' profitability in Sub‐Saharan Africa. The paper employed the system generalized method of moments (GMM) dynamic pooled estimator for the computation of the parameters using data spanning from 1990 to 2017. The results show that there is an affirmative relationship between financial inclusion index (FINDEX) and bank profitability in Sub‐Saharan Africa. This suggests that financial inclusion is a significant driver of banks' profitability in Sub‐Saharan Africa. The policy implication of this study is that for banks in Sub‐Saharan African countries to increase their profitability and get optimum results from financial inclusion they must formulate policies aimed at promoting financial inclusion. This suggests that banks in Sub‐Saharan African countries must be creative and innovative in pursuing financial inclusion policies. Such policies should be targeted at increasing the number of bank branches and ATMs. Banks should also make effort at finding ways of making opening of bank accounts much easier for the vulnerable and marginalized in society by relaxing the requirements for customer identification in specific situations where they may hamper financial inclusion goals and efforts. [ABSTRACT FROM AUTHOR]

This study examined the impact of financial inclusion on economic growth disaggregated into traditional finance and digital finance with its sub-dimension for 29 Sub-Saharan African countries, 2012–2020. The study employed the panel feasible generalised least squares and panel system generalised method of moment procedures, and the panel vector autoregression Granger causality test. The results revealed that for the full sample; (1) Both the traditional and digital financial inclusion have positive and significant impact on economic growth, (2) The impact of the traditional financial inclusion in magnitude is more than that of the digital financial inclusion which also is replicated in the access sub-dimensions, (3) Unlike the access sub-dimensions the relative impact of the usage sub-dimension shows no large difference between the traditional and the digital finance. For the sub samples divided into low-income and middle-income countries; (4) The impact of traditional and digital financial inclusion is different across income levels. Both traditional and digital finance are positive and significant in middle income countries while only digital finance is significant in low income countries, (5) Economic growth Granger caused more of traditional finance than the traditional finance Granger caused economic growth, (6) The access sub-dimension to financial services Granger caused more of economic growth than the usage sub-dimension, (7) Digital financial inclusion is neutral in middle-income countries but not in low-income countries. The study recommends that even as digital finance is the new concept in the context of a developing economy, the traditional banking structures should not be neglected. [ABSTRACT FROM AUTHOR]

This study examines the impact of financial inclusion on economic growth using panel data of 22 sub-Sahara African (SSA) countries during the period spanning from 2012 to 2018. The study employs the system Generalized Method of Moments (GMM). Using a composite index of financial inclusion as well as individual financial inclusion indicators, we discovered that the availability dimension of financial inclusion, penetration dimension of financial inclusion and composite financial inclusion (all indicators put together) significantly and positively impact economic growth while the usage dimension of financial inclusion improves economic growth but not significantly. Also, bank branches and ATMs have positive and significant impact on economic growth, deposit accounts and outstanding loans promote economic growth but not significantly while outstanding deposits adversely affects economic growth. In addition, findings for mobile money indicators from 2012 to 2018 revealed that mobile money agents weaken economic growth while mobile money accounts and mobile money transactions foster economic growth but not significantly. This implies that financial education policies which help Africans better understand the potential benefits of the usage of banking services should be pursued. [ABSTRACT FROM AUTHOR]

This paper empirically examines the quantitative relationship between financial inclusion and inclusive growth in sub-Saharan Africa using a panel of 46 countries for the period 2004–2018. The evidence suggests that usage of financial services, among other covariates, has a quantifiable and discernible impact on inclusive growth compared with availability and knowledge of financial services. Precisely, a unit increase in the usage of financial products and services improves inclusive growth by 0.03 units in sub-Saharan Africa. The paper contributes to literature by initially constructing a broader index of inclusive growth and subsequently estimating the separate quantitative effects of three categories of financial inclusion indicators on inclusive growth by employing the Arellano–Bover/Blundell–Bond system Generalized Method of Moment estimator. The findings underscore the need for policymakers to develop innovative, sustainable and inclusive financial systems capable of distributing growth benefits equitably. This can be achieved through moderate lending rates and transaction charges, improved access to retail and corporate loans, mortgages, overdrafts, credit cards, letters of credits and user-friendly financial technologies. [ABSTRACT FROM AUTHOR]

Unlike the bulk of empirical studies that focused on the effect of financial development, our study investigates rather the impact of direct access and use of formal financial services on human development in sub-Saharan Africa. The paper draws a sample of 28 sub-Saharan African countries from different sources (WDI, GFDD, WGI and UNDP databases) for the period 2004-2017 for the analysis. It adopts a two-stage fixed effect instrumental variables and a system GMM estimations to extract the exogenous effect of financial inclusion on human development. The findings of the baseline model suggest that greater financial inclusion through improved access and usage of formal financial services affects positively and significantly human development in sub-Saharan Africa. The findings are robust to the use of an alternative method of estimation (dynamic panel estimation) and a control for outliers (a different sample). The study suggests that sub-Saharan African countries can leverage financial inclusion to improve human development in the region. Therefore, policymakers and commercial banks should promote access and use of financial services in sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

Rising poverty levels in Sub-Saharan Africa requires a better understanding of inclusive growth determinants to develop effective policy responses. Using panel data from 44 Sub-Saharan African countries for the period 1990–2018, we compute measures of inclusive growth based on gender and the rural–urban divide. We account for endogeneity, cross-sectional dependence, and heteroscedasticity, and estimate an inclusive growth model using the instrumental variable generalized method of moments (IV-GMM) estimator. The empirical evidence indicates that the impact of informality on inclusive growth depends on the measure of informality and inclusiveness. Our results show that financial inclusion exhibits an inverted-U-shaped relationship with inclusive growth. Also, we find that the moderating role of financial inclusion in the informality–inclusive growth nexus is mixed. Our results are robust to alternative model specifications and highlight the importance of financial inclusion and informality in influencing inclusive growth in Sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

This paper applies a finite mixture model to a sample of 28 sub-Saharan African countries to analyse the impact of financial inclusion on income inequality between 2004 and 2016. We hypothesise that the effect of financial inclusion on income inequality differs across groups of countries with similar but unobserved characteristics. We find that the impact of financial inclusion on income inequality varies across two distinct classes of countries. Furthermore, we prove that countries with high institutional quality are more likely to be in the class where financial inclusion reduces income inequality. The results pass a battery of robustness checks. These findings highlight the need for sub-Saharan African countries to develop better democratic environments and institutions if they expect to reap the benefits of financial inclusion. • The impact of financial inclusion on income inequality in sub-Saharan Africa. • The sample covers 28 countries over the period 2004–2016. • We find that the impact of financial inclusion on income inequality differs across two different classes of countries. • Moreover, we find that the impact of financial inclusion is negative in countries with high good institutions. [ABSTRACT FROM AUTHOR]

Despite the rapid economic growth recorded since the 1990s, inequality, poverty and unemployment levels remain high in most African countries. As such, achieving socio-economic goals has been the major focus of policymakers. The objective of this study is to examine the effect of financial inclusion on human development in Sub-Saharan Africa (SSA). Access to and usage of financial services may encourage business start-ups, allow individuals to invest in health and education, manage risk and lessen the burden of financial shocks, and therefore, impact positively on human development. The study employs the panel data approach and utilises the Generalised Method of Moments (GMM) technique. The results show that financial inclusion has a positive effect on human development. Therefore, it is recommended that policymakers implement measures that reduce the costs of access to and usage of financial services, such as investments in infrastructure, and raise awareness of the available financial services. [ABSTRACT FROM AUTHOR]

Financial technology offers convenience, security, and affordability. In sub-Saharan Africa, mobile money is the flagship offering hypothesized to promote financial inclusion. Nonetheless, the persistent complaints from end-users about the cost associated with mobile money usage in the sub-region have gone under the radar. Therefore, using the semi-systematic review of news articles and blogs' in direct content analysis, we explore the cost of mobile money usage in the sub-region. We examine the state of mobile charges and how it potentially reverses the original purpose of FinTech. Results indicate that governments and other stakeholders find mobile money charges to be high. The imposition of mobile money tax and the regressive structure of mobile money charges affect the poor. The effort of policymakers to reduce the cost of mobile money in the sub-region is ineffective because the FinTech market is dominated by few foreign-owned telecommunication companies. Thus, the creation and promotion of a domestic FinTech market are necessary to promote greater financial inclusion. [ABSTRACT FROM AUTHOR]

The topic of financial sustainability in microfinance institutions has become more important as an increasing number of Microfinance Institutions (MFIs) seek operational self-sufficiency, which translates into financial sustainability. This study aims to identify factors that drive operational self-sufficiency in microfinance institutions. To accomplish this, 416 MFIs in sub-Saharan Africa are studied and several drivers for operational self-sufficiency are empirically analyzed. Results indicate that these drivers are return on assets, and the ratios total expenses/assets and financial revenues/assets. The results imply that MFIs should encourage cost-management measures. They also reveal that there may not be a significant tradeoff in self-sufficiency and outreach. These findings will enable microfinance institutions worldwide to sharpen their institutional capabilities to achieve operational self-sufficiency and also provide policymakers with more focused tools to assist industry development. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

In the past decade inclusive growth, that is job-rich growth, has topped the policy agenda in developing countries. This paper investigates how the access to finance affects employment in small and medium-sized enterprises (SMEs) in Sub-Saharan Africa. It first presents a model where firm creation requires entrepreneurial search and paying the start-up costs, while the firm's size in terms of employment depends on the access to credit. Under the financial market imperfections, access to credit can be a binding constraint on firm entry and employment even when the banks have sufficient liquidity. Using an impact evaluation-based approach on firm-level data from 42 African countries, we show that SMEs with access to formal financing create more jobs than firms without access, with employment in firms having access to more affordable and larger loans growing the fastest. The impact of access to finance is stronger for firms in manufacturing than in services, pointing to sectoral targeting of finance as a possible policy supporting industrialization. [ABSTRACT FROM AUTHOR]

The growing digital consumerism in modern society is associated with higher expectations of customer experience, and as such the business environment is expected to co-evolve by developing more consumer-centric, sharing-based and fast--paced business models. This calls for deeper understanding of consumer aspirations and preferences in a given local context. Therefore, this paper explores the co-evolutionary dynamics of digital financial inclusion of Generation Z against a backdrop of limited understanding of the dynamic complexity of the financial business environment in the digital age. A case study of a digital financial ecosystem in Zambia within sub-Saharan Africa is then employed herein to reveal the co-evolutionary dynamics of financial inclusion of Generation Z within the framework of complex adaptive systems. For this purpose, a system dynamics modelling tool of Causal loop analysis is used to visualise the co-evolutionary dynamics. The paper has demonstrated that digital financial inclusion occurs within a continuum of co-evolutionary dynamics in which the financial institutions build consumer demand for digital financial services based on the participatory accountability and financial capability of the clientele. The paper concludes that digital financial inclusion is an emergent outcome of the complex adaptive behaviour of a financial business ecosystem in the increasingly digitising society. Therefore, development of inclusive financial business models must embrace the digital consumerism of the clientele, particularly in sub-Saharan Africa where there is a demographic boom of Generation Z with a growing propensity for digital consumerism. [ABSTRACT FROM AUTHOR]

Survey literature on mobile money and its contribution in promoting financial inclusion and development, with a focus on sub‐Saharan Africa. We use taxonomic, descriptive and analytical methods to evaluate the state of knowledge in the area. We analyse how mobile technology in general may contribute to economic development and financial inclusion in theory and practise. We explain the mechanics of mobile money using Kenya's M‐Pesa as a canonical example; and consider whether the literature has fully established the potential economic impact of mobile money especially its contribution to financial inclusion. We also consider market structure, pricing and regulatory implications of mobile money. We conclude by highlighting issues that require further investigation: the take‐up of mobile money; mobile money and financial inclusion; substitutability between mobile money and conventional finance; and regulatory structures for institutions providing mobile money services. [ABSTRACT FROM AUTHOR]