Effects of financial inclusion on human capital in Sub-Saharan Africa: moderating role of economic growth, corruption and trade openness

Human capital has been considered a fundamental pillar of sustainable development in recent decades. The World Bank, therefore, encourages countries worldwide to strengthen their populations’ human capital. This article aims to analyse the link between financial inclusion and human capital in 46 Sub-Saharan African (SSA) countries covering the period 2000–2020. It adopts a quantitative approach and uses the two-stage least squares method as an estimation technique. The results indicate that financial inclusion improves human capital, but the effects vary across regions in SSA. The results also suggest that economic growth enhances the effects of access to financial services on human capital. On the other hand, corruption and trade openness tend to reduce them. These results suggest that for financial inclusion to promote human capital in SSA, significant reforms must be implemented in these countries. These reforms aim to promote economic growth through investment policies, intensify the fight against corruption, and promote trade through structural transformation policies that favour exports of local products. These reforms must be accompanied by inclusive policies consistent with the guidelines of the World Bank’s Human Capital Project.