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Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa
The financial services sector in Sub-Saharan countries is one of the principal formal and informal employers. Financial inclusion in Africa has been described as poor and needs more attention as compared to other regions. Record based on previous research shows that the link between rural developmen...
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| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2023
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| _version_ | 1867613273082298368 |
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| access_status_str | Open Access |
| author | Shifidi, Lovisa |
| author2 | Biekpe, Nicholas |
| author_browse | Biekpe, Nicholas Shifidi, Lovisa |
| author_facet | Biekpe, Nicholas Shifidi, Lovisa |
| author_sort | Shifidi, Lovisa |
| collection | Thesis |
| description | The financial services sector in Sub-Saharan countries is one of the principal formal and informal employers. Financial inclusion in Africa has been described as poor and needs more attention as compared to other regions. Record based on previous research shows that the link between rural development and financial inclusion has been focused on emerging economies. The majority of the previous research analysed the association between financial inclusion and economic growth or demographic factors. The rural communities have historically experienced challenges in accessing financial services and products, with banks' availability being very low based on certain variables such as infrastructure development, electricity, water, and sanitation, which has limited the sector's growth. Therefore, it is imperative to gauge the relationship between access to financial services and rural communities' growth across the Sub-Saharan African region. To examine the effects of financial inclusion on rural development, the research sought to firstly, explore whether an association exists between financial inclusion and rural development and secondly, determine whether a granger causality exists between rural development and financial inclusion. The research employed the Generalised Method of Moments technique covering 23 economies spanning from 2011 to 2020. The results from GMM indicated that financial inclusion is statistically significant in influencing rural communities' development in the SSA region. Additionally, the sensitivity test results revealed that financial inclusion maintained similar significance suggesting that the heavily indebted status of a country does not impact the relationship. Lastly, the granger causality results showed a uni-directional relationship between financial inclusion and rural development. These findings strengthen the notion that in Sub-Saharan Africa, rural development can be heartened by financial inclusion |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/39113 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:31.121Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/39113 Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa Shifidi, Lovisa Biekpe, Nicholas development finance The financial services sector in Sub-Saharan countries is one of the principal formal and informal employers. Financial inclusion in Africa has been described as poor and needs more attention as compared to other regions. Record based on previous research shows that the link between rural development and financial inclusion has been focused on emerging economies. The majority of the previous research analysed the association between financial inclusion and economic growth or demographic factors. The rural communities have historically experienced challenges in accessing financial services and products, with banks' availability being very low based on certain variables such as infrastructure development, electricity, water, and sanitation, which has limited the sector's growth. Therefore, it is imperative to gauge the relationship between access to financial services and rural communities' growth across the Sub-Saharan African region. To examine the effects of financial inclusion on rural development, the research sought to firstly, explore whether an association exists between financial inclusion and rural development and secondly, determine whether a granger causality exists between rural development and financial inclusion. The research employed the Generalised Method of Moments technique covering 23 economies spanning from 2011 to 2020. The results from GMM indicated that financial inclusion is statistically significant in influencing rural communities' development in the SSA region. Additionally, the sensitivity test results revealed that financial inclusion maintained similar significance suggesting that the heavily indebted status of a country does not impact the relationship. Lastly, the granger causality results showed a uni-directional relationship between financial inclusion and rural development. These findings strengthen the notion that in Sub-Saharan Africa, rural development can be heartened by financial inclusion 2023-12-13T08:52:19Z 2023-12-13T08:52:19Z 2022 2023-12-12T09:00:11Z Thesis / Dissertation Masters MCOM http://hdl.handle.net/11427/39113 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | development finance Shifidi, Lovisa Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa |
| thesis_degree_str | Master's |
| title | Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa |
| title_full | Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa |
| title_fullStr | Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa |
| title_full_unstemmed | Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa |
| title_short | Evaluating the impact of financial Inclusion on rural development in Sub-Saharan Africa |
| title_sort | evaluating the impact of financial inclusion on rural development in sub saharan africa |
| topic | development finance |
| url | http://hdl.handle.net/11427/39113 |
| work_keys_str_mv | AT shifidilovisa evaluatingtheimpactoffinancialinclusiononruraldevelopmentinsubsaharanafrica |