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Determinants of Financial Inclusion in Southern Africa

Author

Listed:
  • Mhlanga David

    (University of Johannesburg, South Africa)

  • Denhere Varaidzo

    (University of Johannesburg, South Africa)

Abstract

The study sought to establish the drivers of financial inclusion in Southern Africa with a specific focus on South Africa. Financial inclusion has been a topic of global interest due to the negative impact of financial exclusion in addressing socio-economic issues like poverty. Using the logit model, the study discovered that financial inclusion is driven by age, education level, the total salary proxy of income, race, gender, and marital status. The variable gender was the only factor with a negative influence on financial inclusion all other significant variables had a positive influence on financial inclusion. As a result, governments in Africa should encourage the use of financial services and products among women, Black Africans, Coloureds and the youths. Products and services tailor-made to satisfy the needs of these groups should be designed to improve financial inclusion among them. This initiative will go a long way in addressing poverty, inequality, and unemployment in the country.

Suggested Citation

  • Mhlanga David & Denhere Varaidzo, 2020. "Determinants of Financial Inclusion in Southern Africa," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 65(3), pages 39-52, December.
    • Handle: RePEc:vrs:subboe:v:65:y:2020:i:3:p:39-52:n:4
    DOI: 10.2478/subboec-2020-0014
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    References listed on IDEAS

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    Cited by:

    1. Favourate Y. Mpofu, 2024. "Industry 4.0 in Finance, Digital Financial Services and Digital Financial Inclusion in Developing Countries: Opportunities, Challenges, and Possible Policy Responses," International Journal of Economics and Financial Issues, Econjournals, vol. 14(2), pages 120-135, March.
    2. David Mhlanga, 2022. "An analysis of the influence of socioeconomic and demographic factors on financial inclusion in underdeveloped regions," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 341-349, September.
    3. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Financial Inclusion Dynamics: A Cross-Country Examination of Bank Concentration and Policy Strategies," MPRA Paper 121284, University Library of Munich, Germany.
    4. Yonghong Tang & Hui Wang & Zirong Lin, 2023. "Spatial Heterogeneity Effects of Green Finance on Absolute and Relative Poverty," Sustainability, MDPI, vol. 15(7), pages 1-22, April.
    5. David Mhlanga & Adewale Samuel Hassan, 2022. "Financial Participation Among Smallholder - Farmers in Zimbabwe: What Are the Driving Factors?," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, July.

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    More about this item

    Keywords

    Africa; Financial Inclusion; Household Survey Data; Determinants South Africa;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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