Abstract:This article discusses the challenges affecting the achievement of financial inclusion for the poor and low-income earners in South Africa. The concept of financial inclusion could be defined as the provision of affordable financial products and services to all members of the society by the government and/or other relevant role-players such as financial services providers. This article identifies unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, lac… Show more
“…The researchers in this study expected financial inclusion to have a more direct impact on sustainable livelihood than financial literacy, but this was not the case, judging from the explanatory power of the relationship. The explanatory power of financial inclusion may not be unconnected with some of the challenges highlighted in literature within the region and in South Africa regarding high fees and affordability, banks' motives, mistrust and the regulatory environment, among other issues [ 21 , 45 , 75 ].…”
Section: Resultsmentioning
confidence: 99%
“…[ 19 ] documented the province as the least financial literate province in South Africa, with 43.1% financial literacy score. Financial products such as the number of automated teller machines (ATMs), bank branches and account holdings rank among the lowest among the provinces in South Africa [ 20 ], owing to the low-income status of the province [ 21 ]. The Eastern Cape is the poorest province in South Africa, with a poverty intensity of 43.3% [ 22 ], thereby making the issues of sustainable livelihood a grievous concern and study imperative.…”
“…The researchers in this study expected financial inclusion to have a more direct impact on sustainable livelihood than financial literacy, but this was not the case, judging from the explanatory power of the relationship. The explanatory power of financial inclusion may not be unconnected with some of the challenges highlighted in literature within the region and in South Africa regarding high fees and affordability, banks' motives, mistrust and the regulatory environment, among other issues [ 21 , 45 , 75 ].…”
Section: Resultsmentioning
confidence: 99%
“…[ 19 ] documented the province as the least financial literate province in South Africa, with 43.1% financial literacy score. Financial products such as the number of automated teller machines (ATMs), bank branches and account holdings rank among the lowest among the provinces in South Africa [ 20 ], owing to the low-income status of the province [ 21 ]. The Eastern Cape is the poorest province in South Africa, with a poverty intensity of 43.3% [ 22 ], thereby making the issues of sustainable livelihood a grievous concern and study imperative.…”
“…South Africa has made significant strides in financial inclusion over the past few years (Chitimira and Ncube 2020). Despite South Africa being one of the most developed economies on the African continent, a large portion of its population still lacks access to formal financial services (Shahbaz, Tiwari, and Nasir 2013).…”
Section: The Background Of Gender Equality and Financial Inclusion In...mentioning
This article examines the intersection of gender inequality and financial inclusion in South Africa, focusing on drawing lessons from India’s experience. Despite progress in financial inclusion initiatives in South Africa, women face systemic barriers to accessing financial services, including discriminatory policies and cultural attitudes. Through a comparative analysis of India’s efforts to promote financial inclusion and gender equality, this article identifies key strategies South Africa can adopt to address gender-based disparities in financial access. These strategies include promoting financial literacy among women, expanding access to formal financial institutions, and implementing policies that address the unique challenges women entrepreneurs face. By applying lessons from India, South Africa can take meaningful steps towards building a more inclusive financial system that empowers women and promotes gender equality.
“…The issue is particularly acute amongst the poor, particularly in rural regions, where the proportion of individuals have little or no access to mainstream financial products owing to a shortage of collateral. The majority of South Africans are unbanked / underbanked due to a dearth of physical accessibility to banking facilities, as well as the financial sector's undesirability to this vast segment of society (Chitimira, 2020). Nyumba et al (2015) conducted research in Lurambi Sub-County, Kenya, to determine the impact of loan interest rates on the performance of small-and medium-sized businesses.…”
Section: Interest On Loans and Sme Sustainabilitymentioning
This paper examined the influences of interest on loans and loan re-payment plans on the sustainability of small and medium enterprises (SMEs) in South Africa. A quantitative research design that adheres to the positivist paradigm was utilized for this study's methodology. The study targeted 103 SMEs operating in KwaZulu-Natal, South Africa using purposive sampling. A total of 103 surveys were administered, representing a participation rate of 100 percent. The analysis demonstrated a positive relationship between interest on loans and the SMEs’ sustainability and positive relationship between Loan re-payment plans and SMEs’ sustainability. The study recommended that financial institutions should examine loan re-payment plans for SMEs as necessary in order to minimize loan defaults by SMEs, and financial institutions should cut loan interest rates and the costs associated with loan approvals, which may be accomplished via automation and the utilization of online applications. Furthermore, the study suggested that financial institutions should design a flexible loan re-payment plan for SMEs that considers the nation's economic realities.
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