An Investigation into the Level of Financial Inclusion in Sub-Saharan Africa
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Date
2019
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Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Romania
Abstract
Financial inclusion is crucial for redistribution of economic resources between the deficit and surplus
units in an economy. Despite the importance of financial inclusion, especially for economic growth of
developing regions such as Sub-Saharan Africa, the prevailing level of financial inclusion remain an
open question. Against this background, this study investigates the level of financial inclusion in Sub
Saharan Africa between 2005 and 2015. This study employs secondary data obtained from the
International Monetary Fund (IMF). The data obtained was subjected to Principal Component
Analysis to determine the level of financial inclusion in Sub-Saharan Africa. The findings show that
Sub-Saharan Africa has a medium level of financial inclusion during the observed period with Index
of Financial Inclusion (IFI) value of 0.095023. The study concludes that Sub-Saharan Africa has high
propensity to achieve a high level of financial inclusion in the region if more outlets of financial
institutions are established.
Description
Keywords
financial inclusion, financial inclusion index, Sub-Saharan Africa
Citation
Abdulmumin, B.A, Etudaiye-Muhtar, O.F, Jimoh, A.T & Sakariyahu, O.R. (2019). An Investigation into the Level of Financial Inclusion in Sub-Saharan Africa. Scientific Annals of Economics and Business, 66 (1), 41-63. Published by Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Romania. Available at http://saeb.feaa.uaic.ro/index.php/saeb/article/view/280/125