Drivers of financial inclusion in sub-Saharan Africa countries

This study examines the determinants of financial inclusion in sub-Saharan Africa (SSA), using formal borrowing, formal saving and bank account ownership as key indicators. Based on cross-sectional data from 36,062 individuals in the 2022 World Bank Global Findex dataset, a multivariate probit model was employed for analysis. Descriptive findings indicate that 42.2% of urban residents have formal financial accounts compared to 31.2% in rural areas. Formal saving remains low, with only 18.1% of urban and 12.4% of rural residents saving through formal institutions, suggesting limited savings culture and accessibility barriers. In rural areas, distance to financial institutions (27.2%) and lack of money (56.5%) are major obstacles, compared to 14.4% and 47.7% respectively in urban areas. Additionally, lack of documentation affects 26.7% of rural and 20.1% of urban populations. Regression results reveal that income, education, employment, remittances, mobile ownership, internet access and urban residency significantly and positively influence all three financial inclusion indicators. A non-linear relationship between age and financial inclusion supports life-cycle theory. The study concludes that reducing barriers to access, improving infrastructure, expanding mobile and digital financial services, diversifying income sources and promoting sustainable employment both on-farm and off-farm can enhance inclusive financial development in SSA.