Publications /
Paper in Academic Journals

Back
Unveiling the drivers of Africa’s digital financial inclusion journey
Authors
Zakaria Elouaourti
January 31, 2024

This Paper was originally published on onlinelibrary.wiley.com

This study aimed to unveil the evolving landscape of digital financial inclusion in African countries during the post-COVID-19 era. We examined factors influencing the access and usage of digital financial services and identified population segments facing increased exclusion due to the digital divide. First, by applying principal component analysis to data collected at the country level from 39 African countries in 2014, 2017, and 2022, we developed a digital financial inclusion index. Second, the empirical research utilized a microlevel dataset of 29,042 adults from 29 countries, sourced from the World Bank's Global Findex 2021 database, employing the instrumental variable probit methodology. Comparative analysis showed improvements in digital financial inclusion rankings for Kenya, Lesotho, and Botswana, while Egypt, Sudan, Tunisia, and Niger experienced declines, indicating limited access. Our empirical findings suggest that certain groups, such as women and individuals with limited education and lower incomes, encounter obstacles in accessing digital financial services. Factors such as education level, labor market participation and access to technology and internet infrastructure emerged as crucial in promoting digital financial inclusion. Our sample's representative nature enhances the study's practical implications, guiding public policies and international institutions to accelerate digital financial inclusion in Africa.

RELATED CONTENT

  • Authors
    December 15, 2017
    The In-focus session about Jobless Growth during the Atlantic Dialogues on December 14th led to a passionate debate on the future impact of jobless growth on Africa as well as the world economy. « Jobless growth » was coined by the American economist Nick Perna (Yale) in the early 1990s. The causes of this phenomenon are highly discussed. For instance, automation is seen as the main source of jobless growth by some economists while others argue that it falls into a « Luddite Fallac ...
  • December 14, 2017
    Moderator: André Caillé, Board Member, Junex - Eric Festa, Senior Vice President, LNG Business Development, Total - R. Andreas Kraemer, Founder & Chairman, Ecologic Institute - Thione Niang, Co-Founder of Akon Lighting Africa - Simone Tagliapietra, Research Fellow, Bruegel ...
  • December 14, 2017
    Moderator: Jordi Bacaria, General Director, Barcelona Centre for International Affairs - Newai Gebre-ab, Executive Director, Ethiopian Development Research Institute, former Chief Economic Adviser to the Prime Minister of Ethiopia - Paulo Neves, President, Institute for the Promotion of...
  • December 13, 2017
    Moderator: Alan Kasujja, Presenter, BBC News - Uri Dadush, Senior Fellow, OCP Policy Center - Yang Guang, General Director, Institute for West-Asian and African Studies, the Chinese Academy of Social Sciences - Laoye Jaiyeola, CEO, Nigerian Economic Summit Group - Miguel Angel Moratinos...
  • December 13, 2017
    As a significant complement to the Atlantic Dialogues conference, the Atlantic Currents publication allows a deeper and further extension of the analytic contribution provided by the “Dialogues”.The goal being to enlarge the discussion pertaining to economic, political and security dimensions of a wider Atlantic area, favoring a new geopolitical construction of this strategic region. OCP Policy Center is proud of the role it has played in extending the transatlantic debate to embrac ...
  • December 13, 2017
    Le rapport Atlantic Currents 2017 sort en marge de la 6ème édition des Atlantic Dialogues, conférence de haut niveau organisée annuellement au Maroc par l’OCP Policy Center et ayant comme mission de promouvoir le dialogue transatlantique entre toutes les parties prenantes de cet espace géostratégique (Afrique, Caraïbes, Europe, Amérique latine et États-Unis), un dialogue devenu nécessité vu les changements rapides survenus de tous les côtés de l'Atlantique au cours des dernières ann ...
  • December 12, 2017
    Infrastructure development is a key factor for growth and an essential catalyst for sustainable and socially inclusive development. The emergence of a large middle-class on the African continent is driving the demand for socio-economic infrastructure including access to water and sanita...
  • Authors
    Will Martin
    December 5, 2017
    The second United Nations Sustainable Development Goal (SDG2) includes the goal to: “End hunger and achieve food security and improved nutrition” by 2030. While such an ambitious goal will clearly involve a wide range of policies and actors, this policy brief focuses on the role of trade policies in affecting food and nutrition security. Extensive and frequently contentious, debate swirls about whether trade in agricultural products is beneficial or detrimental for food security, pa ...