EXPLORING THE MULTIDIMENSIONAL ROLE OF INCLUSION IN ENHANCING FIRM-LEVEL GROWTH IN EMERGING ECONOMIES: EVIDENCE FROM DYNAMIC PANEL MODELS IN SUB-SAHARAN AFRICA

Using a sample of 335 firms from 15 countries in Sub-Saharan Africa from 2013 to 2022, this study examines the effects of financial inclusion on firm-level performance (profitability and sales growth) controlling for firm-level and country-level factors using a multidimensional Financial Inclusion Index (FII) that captures access, usage, and penetration of financial services. The results show that financial inclusion has a significant positive impact on both profitability and sales growth, and the effects are robust across different measures of financial inclusion and firm performance (ROA and ROE). The findings suggest that financial inclusion can be a catalyst for productive investment, operational efficiency, and sustainable firm growth. The policy implications emphasize the need to deepen the digital financial infrastructure, enhance access to affordable credit, and integrate financial inclusion into broader economic development strategies.