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Post‐COVID‐19 recovery for African economies: Lessons for digital financial inclusion from Kenya and Uganda

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  • Regean Mugume
  • Enock W. N. Bulime

Abstract

As coronavirus disease‐2019 (COVID‐19) and other restrictions intensified, individuals, businesses and governments turned to mobile digital platforms to reduce the financial costs and mitigate the risk of spreading the virus within the population. Drawing on lessons from Kenya and Uganda, our study examines the drivers of digital financial inclusion as a pathway for financing post‐COVID‐19 recovery. We find that digital financial inclusion is higher in middle‐aged male digital users with more SIM cards registered in their names. Results also show that users who trust mobile money agents were likely to use more digital financial platforms than others. Based on these results, we recommend the need for government to strengthen the National Identification Systems and consumer protection policies to increase trust in digital financial services. Additionally, financial sector players such as mobile network operators and commercial banks need to innovate and roll out customized digital financial products for the marginalized/unbanked population such as women, the elderly and the youth.

Suggested Citation

  • Regean Mugume & Enock W. N. Bulime, 2022. "Post‐COVID‐19 recovery for African economies: Lessons for digital financial inclusion from Kenya and Uganda," African Development Review, African Development Bank, vol. 34(S1), pages 161-176, July.
    • Handle: RePEc:bla:afrdev:v:34:y:2022:i:s1:p:s161-s176
    DOI: 10.1111/1467-8268.12652
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    2. Ochen, Ronald & Bulime, Enock Will Nsubuga, 2023. "Digital Financial Services regulations: Their evolution and impact on financial inclusion in East Africa," KBA Centre for Research on Financial Markets and Policy Working Paper Series 73, Kenya Bankers Association (KBA).
    3. Abdul Jalloh*, Mamoud, 2023. "Determinants Of Financial Inclusion In Sierra Leone: Evidence From Findex Surveys," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 10(1), pages 32-45, June.
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    5. Zakaria Elouaourti & Aomar Ibourk, 2024. "Unveiling the drivers of Africa's digital financial inclusion journey," African Development Review, African Development Bank, vol. 36(1), pages 84-96, March.

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