Exploring long-term impact of digital financial inclusion on humanitarian crises in Africa: evidence from dynamic common correlated estimation technique

Purpose This study aims to examine the long-term impact of digital financial inclusion (DFII) on humanitarian crises (HC) in Africa. Specifically, it seeks to explore how DFII, as both a technological and financial innovation, can be used to strengthen long-term crisis management, empower beneficiaries and support sustainable humanitarian efforts across African countries. Additionally, the research investigates how DFII can help reduce mortality rates, improve access to clean water and decrease refugee populations. Design/methodology/approach This study explores long-term DFII influence on HC in Africa nations from 2004 to 2023, using dynamic common correlated estimation (DCCE) method, and Dumitrescu and Hurlin (2012) Granger causality test. Findings The DCCE results portray a long-term diminishing influence of DFII on HC. Specifically, greater DFII reduces HC including mortality rates and refugee populations, while improving clean water access, over the long-term. Additionally, less insecurity (IS) reduces HC over the long-term. Other significant drivers of HC are political instability (PS) and domestic credit to private sector (DCPS). The causality test’s results portray a bi-directional causality between DFII and HC, with one-way causality from IS, PS, PR and DCPS to HC. Research limitations/implications The research unravels the significant role of DFII in alleviating humanitarian crises in African nations over the long-term. Additionally, it portrays that improvements in DFII helps in reducing mortality rates and refugee populations, including increasing access to clean water. Practical implications To manage and alleviate HC, Africa’s policymakers are advised to adopt strategies that promote DFII, invest in digital infrastructure and integrate these systems into disaster management frameworks to enhance the effectiveness of humanitarian responses. Originality/value This study presents a novel multi-country analysis of DFII and HC relationship across ten under-researched African nations. It provides empirical evidence on DFII role in crisis management, as well as actionable insights for policymakers and humanitarian actors seeking cost-effective, transparent and workable aid delivery solutions.