Improving Women's Financial Inclusion in Sub‐Saharan Africa Through Foreign Direct Investment: An Analysis of the Direct Relationship and Transmission Channels

ABSTRACT In a context where women in Africa face significant barriers to accessing financial services, this study examines the impact of foreign direct investment on women's financial inclusion using a panel of 31 Sub‐Saharan African countries from 2011 to 2021. Employing both ordinary least squares and two‐stage least squares estimation methods, the results indicate that foreign direct investment positively affects women's financial inclusion. Specifically, foreign direct investment encourages women to open accounts with formal financial institutions, use debit or credit cards, and engage in household savings. Furthermore, foreign direct investment indirectly fosters financial inclusion by improving women's employment opportunities and increasing value added in the manufacturing sector. Based on these findings, policymakers must promote greater foreign direct investment inflows in Sub‐Saharan Africa. Such a strategy would not only enhance women's economic participation but also integrate them more fully into the formal financial system through the global value chains facilitated by foreign investors.