Financial inclusion and economic growth in selected Sub-Saharan African (SSA) Countries
| dc.contributor.advisor | Tsegaye, A | |
| dc.contributor.advisor | Hunter, D L | |
| dc.contributor.author | Delubom, Sesethu | |
| dc.date.accessioned | 2026-08-24T09:53:54Z | |
| dc.date.available | 2026-08-24T09:53:54Z | |
| dc.date.issued | 2025 | |
| dc.description.abstract | This study aimed at investigating the relation between financial inclusion and growth in selected sub-Saharan African (SSA) nations. The importance of the study stems from the growing recognition of financial inclusion as a key driver of inclusive economic development and poverty reduction, yet mixed empirical evidence on its actual impact, particularly on economic growth, calls for deeper investigation. The study employed panel data for the period 2011 to 2021 and engaged the Levin, Lin Chiu (LLC) and Im, Pesaran and Shin (IPS) unit root tests. The Unit root test results revealed mixed integration at orders I (0) and I (1). Sequel to this, the unit autoregressive distributed Lag (ARDL) co-integration estimation technique was used to test long-run dynamics and short-run estimates derived via the Error Correction Mechanism (ECM). The results indicate that there is variability in the impact of various financial sector development measures on growth within the SSA region. Financial inclusion, as measured by proxies for access, including the density of automated teller machines (ATMs) per 100,000 adults and bank branches in commercial banks (CBs) per 100,000 adults, positively influences economic growth. Conversely, financial inclusion, as measured by financial usage, as indicated by proxies such as the proportion of outstanding deposits in the Central Bank (CB) relative to Gross Domestic Product (GDP), and outstanding loans (CB) as a percentage of GDP, had a negative impact on economic growth. Granger causality testing further identified a unidirectional causality from economic growth to financial inclusion access measured through commercial banks (CB) per 100,000 adults. The findings from this study indicate that financial inclusion access increases and boosts economic growth, rather than financial inclusion usage. It is recommended that policies in the SSA region should encourage financial inclusion as a policy for inclusive growth. This can be facilitated by enhancing physical access to banking services, establishing and enforcing regulations that protect consumers and ensure the stability of financial institutions and by advancing digital financial services to broaden access. Additionally, aligning financial inclusion initiatives with wider development objectives can help maximise their impact on economic growth. | |
| dc.identifier.uri | http://hdl.handle.net/20.500.11837/5040 | |
| dc.language.iso | en | |
| dc.publisher | University of Fort Hare | |
| dc.subject | Finance | |
| dc.subject | Economic development | |
| dc.subject | International economic integration | |
| dc.title | Financial inclusion and economic growth in selected Sub-Saharan African (SSA) Countries | |
| dc.type | Thesis | |
| eperson.orcid | 0000-0003-0393-4514 |