Determinants of Financial Inclusion in Southern Africa

Mhlanga, David; Denhere, Varaidzo

doi:10.2478/subboec-2020-0014

Cited by 34 publications

(17 citation statements)

References 22 publications

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“…Mhlanga and Denhere (2020) examined the drivers of financial inclusion in South Africa. Considering bank account ownership as the proxy variable of financial inclusion, they used data from the South Africa 2018 General Household Survey (GHS) dataset to perform logit estimations.…”

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confidence: 99%

An analysis of the factors affecting the financial inclusion in Côte d’Ivoire

Coulibaly

2022

IJFBS

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The purpose of this study is to examine the drivers of the ownership and use of mobile accounts as compared to those of financial institution accounts in Côte d’Ivoire. In this perspective, individual level data from the Global Findex 2017 database were used to carry out simple probit and Heckman probit estimations. The results revealed that the ownership of mobile accounts is associated with determinants related to individuals in the least vulnerable strata of society (wealthier and more educated individuals and individuals in the labour force), while their use is associated with determinants related to individuals in the most vulnerable strata of society (women and individuals out of the labour force). On the other hand, the ownership and use of financial institution accounts are associated with the determinants related to individuals in the least vulnerable strata of society. Therefore, the delay between the financial institution accounts’ penetration rate and that of mobile accounts in Côte d’Ivoire may be explained by the greater use of mobile accounts by individuals in the most vulnerable strata of society, which represent the large share of the unbanked.

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confidence: 99%

An analysis of the factors affecting the financial inclusion in Côte d’Ivoire

Coulibaly

2022

IJFBS

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“…Various studies have been conducted in this area (Amaeshi et al, 2007;Adewale et al, 2012;Mhlanga & Denhere, 2020), below presents the chronology of major studies related to this research in order to assess and identify the research gap. In South Africa, Wentzel et al (2016) investigated the factors impacting FE and found that the most significant factors associated with being financially excluded in South Africa were educational level, the primary source of income, age, home language, and the number of dependents.…”

Section: Review Of Empirical Studiesmentioning

confidence: 99%

Determinants of Financial Exclusion in North-Western Nigeria

Yusuf¹,

Sokoto²,

Bello³

2022

theijbm

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Determinants of Financial Exclusion in North-Western Nigeria IntroductionThe federal government of Nigeria in its quest to reduce poverty, generate employment, create wealth, improve the welfare of its citizens and their standard of living adopted a strategy aimed at delivering formal financial products and services to individuals and businesses here referred to as 'National Financial Inclusion Strategy' (NFIS) in 2012. The strategy if fully implemented is believed to boost the country's gross domestic product (GDP) and reduce the proportion of adult Nigerians that are financially excluded from these products and services by the year 2020 here referred to as 'Financial Inclusion' (FI). FI refers to the act of having access to financial products and services at a formal institution which gives an individual the right to maintain an account with these formal institutions, access to credit, contract insurance, use payment services and pension services. The strategy set an overall target of 80% for both formal and informal sectors (70% and 10% respectively) by the year 2020. The importance of financial inclusion is the delivery of financial services at an affordable cost to vast sections of disadvantaged groups and low-income earners.As of 2010, only 36.3% of adults Nigerian are financially included in the formal sector and this rate is projected to increase to 70% by the year 2020 (NFIS, 2010). According to Enhancing Financial Innovation & Access (EFInA) access to financial services survey in Nigeria, more than half of the country's population (51%) in 2020 are using formal (regulated) financial services like banks, microfinance banks, mobile money, insurance, or pension accounts which show an upward trend from 49% in 2018. Though the level of FI has grown in the past decade, the country falls short of meeting the NFIS target set in 2010 of 70% of Nigerians with access and usage to formal financial services by the year 2020 and 80% by overall FI for the same period (NFIS, 2020). In a survey carried out by EFInA in 2012EFInA in , 2014EFInA in , and 2016, the level of exclusion continues to grow in almost all the six geopolitical zones, with North West increasing from 64% in 2012 to and 70% in 2016. North Central zone and North East show an increase from 32% to 39% and 60% to 62% in 2012 and 2016 respectively. South-South and southeast also witnessed an increase from 30% to 31% and 26% to 28% in 2012 and 2016 respectively; only South West witnessed a decrease in the level of financial exclusion from 25% to 18% in 2012 and 2016 respectively. This prompted the interest of various policymakers, academics, and financial analysts to study the factors behind the increase in the level of FE and or factors behind the low level of financial inclusion. Studies on the determinants of financial inclusion by Mhlanga and Denhere (2020) and Celestin ( 2021), the impact of FI on financial stability (Pham & Doan, 2020), Determinant of FE in Indonesia (Ali et al., 2020), Adeyemi et al. (2014) studied the determinants of FE among Musl...

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“…Hence Zimbabwe, being one of the African countries, is not an exception when it comes to corruption, which has been identified as one of the causes of liquidity crisis in the country. The bond notes referred to as the "surrogate currency" faced resistance when they were introduced because both the business community and the public conceived this scenario as the reintroduction of the Zimbabwean dollar (Southall, 2017;Mhlanga, 2021). As indicated earlier, the Zimbabwean dollar had a history of failure, and depositors began to withdraw their US dollar cash balances from banks in fear of being prejudiced.…”

Section: The Liquidity Crisis In Zimbabwementioning

confidence: 99%

The Use of Surrogate Currency to Address Liquidity Crisis: The Zimbabwean Experience

Denhere¹,

Mhlanga²

2021

EJEF

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Zimbabwe has experienced an economic meltdown dating back to 2000, which created perennial economic woes such as a liquidity crisis that continued haunting the country to date. Various possible solutions were explored but did not yield the desired results. Amongst the explored solutions was an introduction of surrogate currency specifically to curb the liquidity crisis. This paper sought to explore the effects of using "surrogate currency" to address the liquidity crisis in Zimbabwe by employing a desk review. Currently, there is a dearth of literature on using surrogate currency in African countries. Hence this study contributes to the existing literature on the use of such currency. The review established that the surrogate currency led to the emergence of bad money as propounded by Gresham’s law of currency systems. Moreover, the surrogate currency rapidly lost its value, whereas the introduction of the surrogate currency failed to address the liquidity crisis, leading to other socio-economic challenges. Finally, financial reporting under the surrogate currency became a challenge as well. This study recommends the withdrawal of the surrogate currency and the use of multicurrency along with the promotion of products for export to attract more foreign currency into the economy.

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Determinants of Financial Inclusion in Southern Africa

Cited by 34 publications

References 22 publications

An analysis of the factors affecting the financial inclusion in Côte d’Ivoire

An analysis of the factors affecting the financial inclusion in Côte d’Ivoire

Determinants of Financial Exclusion in North-Western Nigeria

The Use of Surrogate Currency to Address Liquidity Crisis: The Zimbabwean Experience

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