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on Financial Literacy and Education |
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Issue of 2025–03–24
25 papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Kodongo, Odongo |
| Abstract: | The purpose of this policy brief is to explain the role that the fintech (financial technology) ecosystem could play in facilitating financial inclusion in Kenya. The country has witnessed tremendous growth in the fintech subsector in recent years. It had at least 385 registered fintech firms/startups by July 2022 operating in various subspaces such as savings and credit, foreign exchange and cryptocurrency, insurance, and micro/neo-banking. Alongside these developments there has been a steep growth in financial inclusion, with FinAccess surveys documenting growth in formal financial services usage between 2006 and 2021 from 33.2% to 85.9% among men, and from 20.5% to 81.7% among women. Therefore, understanding the linkages between fintech and usage of formal financial services is of interest to policymakers. This study explored linkages using FinAccess data for 2016 and 2021 and documented several interesting findings. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:1503a2fb-6c52-479f-bdb0-4dee7501bd9b |
| By: | Munyegera, Ggombe Kasim |
| Abstract: | Rwanda has achieved remarkable progress in financial inclusion and the development of digital financial services. Women are, however, disproportionately less included in formal financial services. While the overall gender gap in financial inclusion narrowed from four percentage points in 2016 to one percentage point in 2020, women have lower access to formal financial services, including ownership of bank and mobile money accounts. The DFS inclusion rate increased from 46% of the adult population in 2016 to 66% in 2020. However, there is a clear gender gap, with women having a lower DFS inclusion rate (62%) relative to their male counterparts (71%). Evidence-based measures to close the gender gaps in financial inclusion and DFS require research to understand their underlying drivers from the demand and supply sides of the financial sector. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:ebb7b36e-1f52-4577-ae92-704b54bec535 |
| By: | Akem, Fiennasah Annif |
| Abstract: | Using the FinScope Consumer survey, the study examines the implications of financial inclusion for poverty in Cameroon. Specifically, assessed the impact of financial inclusion on overall welfare and by gender. In order to account for the endogenous selection bias resulting from unobserved confounders and for structural differences between users and non-users of financial services in terms of welfare generating function, we employ the endogenous switching regression. The probit results indicate that men have a higher probability of being financially included compared to women. We further observe that financially included individuals are expected to make welfare gains of about XAF 14, 544 per month. Results equally show that the impact of financial inclusion is higher among men compared to women. These results underscore the need for targeted policies to address gender disparities in access to financial services, implementing policies that promote equal opportunities for men and women in the financial landscape is essential for fostering sustainable economic development and reducing poverty in Cameroon. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:b68fd6e8-123f-4664-80d5-f4f13dd61e2b |
| By: | Nicholas, Okot; Elizabeth, Kasekende |
| Abstract: | Financial inclusion is crucial for sustained growth and development. However, it relies on an appropriate policy environment to ensure confidence. Digital Finance Services (DFS) are believed to enhance financial inclusion by promoting efficient access for the vulnerable. With a mobile money penetration rate of 51%, Ugandans are poised to benefit from digital financial innovations. The other DFS channels are internet banking, financial cards, e-commerce, and integrated payment platforms. In the last decade, Uganda has made significant strides to promote access, uptake, and usage of DFS to reach the unbanked share of the population. The goal of the National Financial Inclusion Strategy is to achieve 75% formal inclusion by 2028. This milestone seems ambitious, given Ugandas financial infrastructure and social structure. This could be achieved if the country maintains the current trajectory of DFS adoption supported by an adequate policy and institutional framework aligned with global best practices to engender equity across the social divide. Do these policies lead to higher levels of financial inclusion? |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:beef6cab-ed85-46d8-9cdb-3e6f2d12eb29 |
| By: | Botha, Rosemary; Kamninga, Tony; Tuyisenge, Methode |
| Abstract: | It is widely known that financial inclusion is key in achieving development at macro and micro level. Rwanda has over the years made great strides in financial inclusion with 93% of the adult population being financially included. Mobile money is the biggest driver of financial inclusion in Rwanda with the uptake among women being relatively lower (84%) compared to men (90%). The fifth Sustainable Development Goal identifies the achievement of gender equality and women empowerment as one important pillar in the achievement of sustainable development. With the high coverage of digital financial inclusion through mobile money and its current structure in the country, it is unknown whether agency is improved for women with access to mobile money. Digital technology has gained prominence to support women empowerment by changing the way business is done and creating better employment opportunities. The current operation of mobile money provides a reliable platform for transactions, but more reforms could be done to provide even better benefits to its clients. This brief discusses results investigating the effect of mobile money access on women empowerment in Rwanda. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:df2934bb-b4e4-43cb-b555-a476fe2aab43 |
| By: | Garang, James Alic |
| Abstract: | This policy brief addresses four key research problems: challenges in opening bank accounts and obtaining IDs, access to financial products and services, and financial literacy. One of the major barriers to accessing financial products, such as loans, is the requirement of a bank account, which in turn necessitates identification (ID). This issue is particularly critical in South Sudan, where only 37, 000 people across the entire country possess IDs, highlighting a significant gap that must be bridged urgently. Due to the widespread financial illiteracy among much of the population, alternative mechanisms for issuing identity cards need to be introduced to include marginalized groups, such as women, people with disabilities, and those in rural areas. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:026070ae-32e3-4f92-86da-80f514cb874d |
| By: | Bizoza, Saidi; Irakoze, Gildas |
| Abstract: | The effectiveness of financial inclusion as an instrument to address income inequalities and social inclusion is no longer questionable, given its contribution to the SDGs agenda (SDGs 1, 2, 3, 9, and 10). However, in Burundi, financial inclusion remains low with major causes being social exclusion and physical distance. Half of the adult population lives more than 8 km from the nearest financial institution, and 44% need more than 60 minutes to get there. Financial services are concentrated in Bujumbura, with 37.5% of bank branches located there, exacerbating accessibility challenges for those in rural areas. Moreover, only 30% of the total banks and microfinance accounts are held by women. The latter disparities have obvious negative consequences in terms of household welfare. Many efforts to address the issue of financial inclusion failed as they relied on classical banking approaches, themselves depending on costly and unaffordable infrastructure in the context of Burundi. Mobile money (MM) has demonstrated significant potential in advancing financial inclusion, particularly in underserved areas such as rural communities and low-income households. Globally, it is celebrated as a transformative tool for bridging the financial inclusion gap and addressing disparities, including the gender gap. However, in Burundi, the adoption and impact of mobile money remain relatively underexplored. This necessitates a critical assessment to identify effective strategies tailored to Burundi's unique context. Drawing direct inferences from other countries without localized evaluation risks policy misalignment and potential failure. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:aaa4d8cf-2b7d-4962-a91b-b3785ed07b86 |
| By: | Shinyekwa, Isaac, M.B.; Mpuuga, Dablin; Nattabi, Aida K.; Bulime, Enock W.N. |
| Abstract: | The paper examines the extent to which digital financial services mobile money, online banking and agency banking contribute to financial inclusion in Uganda. We identify the key enablers and inhibitors of access and usage of digital financial services. To achieve this, we adopt a mixed methods approach and use the recent 2019/20 Uganda National Household Survey (UNHS) data, the World Banks Global Findex data for 2021, and insights from key informant interviews. We use an instrumental variable approach to control for endogeneity and run recursive probit models for the binary outcomes of usage of mobile money services, agency banking, and commercial banks. We also run models for access to commercial banks and usage of informal groups. The results re-affirm the gap between men and women in access to and usage of digital and formal financial services, although this gap has significantly reduced over time. We also find that informal financial groups are used more by women. Financial literacy proxied by an individuals ability to read and/or write is a significant enabler of digital financial services usage among both men and women. Conversely, saving money at home/secret place has a strong negative effect on the overall usage of digital financial services, but a strong positive effect on the usage of informal groups. The new financial inclusion strategy should provide incentives to the private sector to promote innovation and investment in a broad range of new, friendly, and affordable products to attract the excluded sections of the population. Importantly, cultural and community institutions provide better opportunity towards changing social norms that have for long disadvantaged women and kept them financially excluded |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:4de4e4dd-3a1b-4e3f-b54c-512739576595 |
| By: | Munyegera, Ggombe Kasim |
| Abstract: | Persons with disabilities have disproportionately lower levels of access to financial and other services globally, resulting in lower socio-economic status relative to the general population. This study uses a mixed methods approach to quantify and explain the disability divide in Rwandas financial services. Using Probit models, the probabilities of accessing, owning and using digital platforms, financial accounts and products, and financial services are estimated while Tobit models are used to estimate the value of financial transactions. Probit and Tobit estimates are complemented by propensity score matching (PSM) as a robustness check. The results indicate that persons with disabilities are significantly less likely to own a mobile phone, computer and Internet or even use those owned by someone else. Ownership rates of mobile money and bank accounts, automated teller machine (ATM), credit cards, and usage of mobile and Internet banking are also lower among persons with disabilities. The usage of financial services saving, remittances, credit and insurance is also lower among persons with disabilities at the extensive margin (probability of usage) and intensive margin (value of transactions). A further finding is that, conditional on having a disability, females are less financially included related to males. The findings carry key implications regarding the need to boost financial inclusion for persons with disabilities to achieve overall equality as stipulated in Sustainable Development Goal (SDG) 10. Among others, there is need for interventions to raise digital and financial literacy among persons with disabilities and develop innovative products that appeal to the financial needs and difficulties of this vulnerable group in general and women with disabilities in particular. |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:7dfeab2a-be4d-4ca7-8cc3-48bf0a249fe8 |
| By: | Joseph, Samson Taban; Ajongo, Jacqueline Benjamin |
| Abstract: | Among the many problems facing the economy, financial exclusion is one of the major issues facing South Sudan in recent times. About 80% of the countrys adult population lack bank accounts, leaving them financially excluded from accessing and using financial products, services, and information. This is a concerning statistic, as financial inclusion is crucial for economic growth and societal development. This issue was engineered by the countrys high financial illiteracy rate (73%), who are mostly women, and people with special needs. Furthermore, limited financial infrastructure in various regions of the country, such as the insufficient number of bank branches in rural areas and strict Know Your Customer (KYC) regulations, remains a significant concern. Additionally, many adults lack the necessary documents to open bank accounts. As a result, the regulatory framework governing financial inclusion and the role of digital financial services in the country is inadequate. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:c24cc2ac-dcba-4a30-9fb2-81dc80ca9f56 |
| By: | Ndoricimpa, Arcade; Nyamweru, Jean Claude; Ndayikeza, Michel Armel |
| Abstract: | Despite the importance of financial inclusion for economic growth and poverty reduction, the formal banking system rarely reaches the rural areas, and when it does, the cost of their services becomes a barrier for low income households and small businesses. The proportion of adult population that owned an account at a financial institution in Burundi was 12.5% in 2016. This is very low com-pared to the sub-Saharan African average of 34%. In addition, a national financial inclusion survey in Burundi in 2016 indicated that the ratio of account holders was five times higher in urban areas than in rural areas. Moreover, the survey indicated some gender and demographic differences in account ownership. The proportion of men owning an account was found to be almost double the women, while the proportion of young people (aged 18-29 years) owning an account was half of those aged 30 years and older. The ratio of account holders was found to vary depending on socioeconomic category; it was found to be 89.5% among state employees, 52.1% for private sector employees, 30.1% for traders and 5.3% for farmers. Contrary to what is observed in many other developing countries, women were found to constitute only 28.3% of microfinance institutions customers. It should be noted that the lack of access to formal financial services means that the poor and small businesses are limited in their ability to save, repay debts, and manage risk responsibly. Its therefore imperative to find innovative models that help extend financial services to the financially excluded and the poor. Its for this reason that digital financial services started in developing countries through mobile phones, in a bid to try bridging the financial inclusion gap. Mobile money technology has been introduced in Burundi as well, but the adoption and use are still low compared to other countries in the region. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:b5046945-9f4a-46df-95b9-db88047c497d |
| By: | Munyengera, Ggombe Kasim; Precious, Akampumuza; Seth, Kwizera |
| Abstract: | As financial inclusion rates rise to cover 93% of the adult population in Rwanda, one in four adults with disabilities has no access to either formal or informal financial services. People with disabilities have lower rates of mobile money account ownership (46%) compared to those without disabilities (59%). Overall rates of bank service usage, including accounts owned by others, were 30% among persons with disabilities and 37% among those without disabilities. Informal services are an inevitable option for people with disabilities whose usage rate is higher (17.9%) than among the rest of the population (14.9%), with substantial cost implications, especially regarding credit. Supply-side constraints include the physical inaccessibility of most financial institution and mobile network operator (MNO) premises, a lack of products tailored to the special needs of persons with disabilities (PWDs), disability-insensitive service delivery channels, and negative stereotypes and discrimination among some financial service providers. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:188fd537-66da-4037-9a2d-4177a704b14d |
| By: | Garang, James Alic |
| Abstract: | This paper examines the constraints both to the evolution of mobile money and the broader banking sector provision of financial services in South Sudan, focusing on the conflict and state of financial inclusion during the 2011-2021 period. While mobile money has gained momentum in the region and beyond, its introduction in the South Sudanese market is recent, and adoption has been much slower, and differentiated, with customers more likely to have a mobile money account if they are better educated, live in the city, are male, and wealthy. A key contributor is the rudimentary level of South Sudans financial sector development, which feeds into financial exclusion, and the impact of preceding conflicts. Broadly, the paper confirms the longstanding view that economic disruption associated with the civil war and lack of supportive infrastructure are central barriers to expansion of financial services across the country. In conclusion, sustained stability and improved general infrastructure could enhance expansion of financial services and broader inclusion in South Sudan. |
| Date: | 2025–02–07 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:cb78f530-2e9e-4afd-be28-513187bcc244 |
| By: | Daniel, Lanta; Mwighusa, Dennis; Diyamett, Bitrina |
| Abstract: | Financial services are key to economic growth and societal well-being, boosting access to credit, savings, and overall development. Despite progress in mobile phone and mobile money adoption in Sub- Saharan Africa particularly Tanzania, financial exclusion in the country remains high compared to other East African countries, with significant gender and urban-rural disparities. This study examines digital financial inclusion in Tanzania, focusing on rural women's experiences and challenges. Using focus group discussions and policy analysis, the study highlights major gaps in awareness, usage, and understanding of mobile money services, as well as overlooked policy aspects. Key findings reveal that while awareness of digital financial services is widespread, rural communitiesespecially womenlack a thorough understanding of these services. This gap in comprehension limits their usage, indicating that mere awareness is insufficient. The study underscores the importance of tailored interventions, such as community engagement, capacity building for agents, and targeted policy frameworks, to address these challenges. Recommendations are provided for both the public sector and the private sector on how to enhance financial inclusion, ensuring that no one is left behind in the digital financial landscape. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:39cdb42d-dbf4-4e35-a1a7-69a3625e8b0c |
| By: | Shinyekwa, Isaac M. B.; Mpuuga, Dablin; Nattabi, Aida K.; Bulime, Enock W. N |
| Abstract: | Financial inclusion (FI) and specifically access to affordable financial services is very critical in reducing poverty, income inequality as highlighted in Sustainable Development Goals 1, 5 and 10; and accelerating economic growth. FI is therefore important for Uganda like any other country. Women and rural Ugandans are proportionately more included in informal financial groups, whereas men and urban dwellers have more access and usage of formal financial services. The low level of formal FI in rural areas is partly explained by the high cost of providing financial services. Commercial banks are faced with lack of the incentives, information, and sometimes the ability to mitigate the risks of operating beyond urban markets or with low-income clients. Consequently, a significant portion of rural and low-income Ugandans remain financially excluded. In this regard, DFS such as MM emerge as one of the ways to bridge the financial access gap between the financially included and excluded. It is however noted that little is known in Ugandas context concerning the critical enablers as well as inhibitors to access and usage of DFS. The policy brief summarizes findings from the study titled, Leveraging Digital Services and Market Development for Financial Inclusion: The Case of Uganda. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:7ecf9e49-70f2-4a90-927a-afd6067564d6 |
| By: | Wamalwa, Peter; Tiriongo, Samuel; Mulindi, Hillary |
| Abstract: | Competition in the banking sector is a catalyst for innovation and the adoption of digital channels to provide financial services. The low cost of providing financial services through digital channels has been leveraged on by banks to extend services to the underserved and the excluded. This paper deploys panel regressions and binary response models to analyse the impact of competition in the banking sector on penetration and utilization of digital financial services across gender in Kenya, Uganda, and Tanzania, controlling for competition in the telecommunications sector. The latest wave of Finscope Survey (2017) and financial inclusion household survey (FinAccess, 2021) datasets are used. The analysis shows that males have a higher probability of using digital financial services than females. Females in rural areas, engaged in the agriculture, services, trade and casual labour are less likely to use digital financial services compared to their male counterparts. Competition in the banking industry increases utilization of digital financial services due to banks leveraging on innovation to provide relevant services at low cost. Therefore, a policy approach that considers gender differences and fosters competition in banking and mobile telecommunication industries will encourage providers of financial services providers to effectively leverage on mobile money and digital finance to close gender gaps in the utilization of digital financial services in the EAC region. |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:ee1ed634-f735-4382-8f2a-4c28005350ec |
| By: | Munyengera, Ggombe Kasim; Agnes, Mutuyimana; Seth, Kwizera; Precious, Akampumuza |
| Abstract: | Digital financial inclusion in Rwanda has grown from 46% of adults in 2016 to 66% in 2020. The nature of payments has also evolved, shifting from peer-to-peer transactions to more sophisticated ones, such as tax payments. According to the 2020 Finscope survey, 94% of commercial banks now offer some form of electronic payment. This progress notwithstanding, cash remains the preferred method of payment for groceries (98% of respondents), electricity (52%), medical fees (60%), education (44%), and personal spending (60%). Critical impediments to further DFS development and adoption include limited interoperability among platforms and services of different service providers and low levels of digital literacy. The mid-term evaluation of the National Strategy for Transformation revealed that only 24% of adults were digitally literate in 2021, less than halfway to the target of 60% by 2024. Low levels of awareness of DFS products, unreliable networks, especially in rural areas, and low levels of trust partially motivated by cyber insecurity are additional impediments to being addressed. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:b37c4ced-2a36-4e7e-8c3c-2ed0552a17ce |
| By: | Osoro, Jared; Bundi, Davis; Kiplangat, Josea |
| Abstract: | The noticeable strides Kenya has made on digital financial services that anchor the positive narrative of financial inclusion is evidently leaning towards payment services. However, digital divide still exists due to behavioural heterogeneity. This paper explores the influence of behavioural biases in access and usage of mobile money services, the dominant digital financial services in Kenya. The 2021 FinAccess data anchors the empirical investigation on the extent to which behavioural biases are an obstacle to access and usage of mobile money. Deploying descriptive statistics on gender disaggregated data and a probit model to estimate marginal effects, we ascertain that behavioural biases contribute to the digital divide evident among men and women households in Kenya. These biases drive a wedge between access and enhanced usage of digital financial services in a manner that slows the sequential process of the former, leading to the latter. Beyond advancing literature in this area, this paper proffers arguments in favour of putting in place measures to enhance household incomes that have a gender lens, for they have the potential of ameliorating the gaps underlying financial exclusion of women and low-income earners in mobile money access and usage. It also argues for a policy position that discourages the consideration of basic digital financial services as a revenue mobilization platform through direct taxation as that could be counterintuitive. |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:0cdc9b6d-5d8c-46e6-8f00-e9039cb8238b |
| By: | Munyegera, Ggombe Kasim |
| Abstract: | Digital financial services (DFS) have the potential to promote payments efficiency and boost financial inclusion even in remote areas with minimal traditional financial infrastructure such as bank branches. In Rwanda, the digitization of payments is a key policy strategy in a bid to transform the country towards a more cashless and knowledge-based economy. Since the establishment of the Rwanda Integrated Payments Processing System (RIPPS), various policy and product innovations have been put in place to increase the share of transactions done electronically. This study examines the development path of digital financial services in Rwanda over the decade 2011-2021 using a mixed-methods approach. The quantitative part entails descriptive and regression analysis to ascertain the trend, patterns and determinants of uptake for key DFS products in the country while the qualitative key informant interviews with key stakeholders are used to ascertain the opportunities and challenges for further promoting DFS in the country. The findings indicate that between 2011 and 2021, the number of people using Internet and mobile banking increased quite substantially. The number of active mobile money subscribers increased from 1.6 million in 2012 to 5.1 million in 2021, while credit cards increased from 115, 200 in 2011 to 686, 309 in 2021. The transactional volume and value also increased remarkably, partly fueled by COVID-19 and innovative use of mobile money, including electronic tax payment. The study recommends improving Internet connectivity and quality, promoting digital literacy, improving interoperability and enhancing cyber security to further boost DFS in Rwanda. |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:319299ff-f4f7-4716-a582-12b056c2bb85 |
| By: | Mwighusa, Dennis; Diyamett, Bitrina |
| Abstract: | There is now consensus that innovative financial services that are provided in a more equitable and inclusive way are the cornerstone of social and economic development. In this regard, although Tanzania has recorded a significant growth in the level of financial service provision and has reached out to a good number of people in the country, especially through digital means, the country might not benefit from this wide coverage of financial services because it faces a glaring gap in inclusiveness. The reasons for the persistence of such exclusion in spite of policies to address the challenges are not clearly known. This work is an attempt to close this knowledge gap basically towards understanding the factors contributing to both gender and location-related exclusion with the purpose to inform inclusion policies. The findings indicate that the major challenges revolve around inappropriate marketing strategies for the digital financial services for the poor; inappropriate products in terms of price and context fitness; and cost related to product development and service provision on the part of the providers. The existing inclusion policies did not seem to have helped much as they have some serious gaps in their design. |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:76690e87-a99e-424a-aa08-7c6c24dfa1aa |
| By: | Wamalwa, Peter; Tiriongo, Samuel; Mulindi, Hillary |
| Abstract: | East African countries have vibrant telecommunications and banking sectors that have encouraged innovation and digitization of financial services. As a result, the cost of financial services has declined, making them more affordable and accessible to more segments of the population. The relevance of financial services has also improved, thereby contributing to increased uptake of services. Increased access and utilization of relevant financial services contributed to alleviating poverty, growth in incomes and gender parity in wealth. Despite East African countries having a competitive banking sector and strong synergy between telecommunications, banks, and financial technology firms, as well as achieving gains in digital financial inclusion, gender inequalities persist. Despite increasing competition in the banking sector, the gender gap in access to and utilization of financial services remains, particularly among women in rural areas, those engaged in farming or trade, and dependents, who together form the majority in East Africa. Women with lower educational attainment and those living in poverty have significantly less access to digital financial services compared to men. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:a6bc6eca-0402-4c0a-9b73-6020e207e362 |
| By: | Musabanganji, Edouard |
| Abstract: | Rwanda is a densely populated developing country where many people depend on agriculture but lack access to credit. The country has low agricultural productivity, along with high levels of income inequality and food insecurity. Studies have shown that credit access can improve rural agricultural household welfare. Over the years, the governments policies have substantially improved financial inclusion. However, poverty levels remain high particularly in rural areas. This study investigates the drivers of participation in the credit market and the effect of credit access on dietary and food diversity scores, as well as household spending. It utilizes data from 6, 183 rural households obtained from the 2015 National Comprehensive Food Security and Vulnerability Analysis survey. It analyzes the effect and drivers of access to credit on rural household total monthly expenditure, food consumption score and dietary diversity score as the outcome variables. The study applied the Endogenous Switching Regression, Propensity Score Matching, and Coarsened Exact Matching techniques. The estimation yields consistent results and reveals that access to credit is positively affecting the welfare of rural households as it induces an increase of the household consumption expenditure of borrowing households. The study does not reveal a significant linkage between access to credit and the household food consumption score. The findings suggest increasingsensitization sessions and awareness on the importance of credits. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:97af106f-a829-4aa6-b571-78b1a66d29f7 |
| By: | Lemma, Tesfaye Tadesse; Mlilo, Mthokozisi |
| Abstract: | Women entrepreneurship plays a critical role in achieving sustainable development goals (SDG) of achieving gender equality and poverty reduction by promoting economic growth. The Kenya governments Vision 2030 identifies entrepreneurship as a key tool in eradicating poverty and creating wealth for its people. Policies aimed at improving women's entrepreneurship have had limited success, as women-owned businesses have struggled to survive and succeed compared to male- owned ones. This disparity in performance is attributed to finance-related obstacles. Digital financial services (DFS) and technology can promote financial inclusion and level the playing field for male and female entrepreneurs. According to the latest World Bank Enterprise survey, 53% of Kenyan women-owned businesses reported adopting DFS due to high transaction costs associated with traditional bank services, such as bank fees, time spent conducting banking activities, and the risk associated with cash movement. In Kenya, 36% of households are women-headed and in dual-headed households, women are likely to be the primary caregivers and endure most of the economic and social hardship. DFS can help alleviate social difficulties faced by women entrepreneurs while balancing work and home responsibilities. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:e0a219e2-be70-4582-b156-467cf5e22144 |
| By: | Tamba, Cox Lwaka; Murithi, Emmaculate Kathomi |
| Abstract: | Kenya is one of the countries in Africa where digital financial access has tremendously grown. Digitalization of the financial sector and the recent increase of Digital Financial Services (DFS) brings new opportunities to help build inclusive economic infrastructure that offers new services to marginalized populations and underserved communities worldwide. DFS can bridge the gender gap by increasing womens financial autonomy and improving their economic participation. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:4c215b39-417d-4477-92d1-2b6e09025cea |
| By: | Ogwang, Ambrose; Kahunde, Rehema; Makika, Maya Dennis |
| Abstract: | Using Digital Financial Services (DFS) is key to increasing income-generating capacity, managing risks, lowering transaction costs, accessing credit, and increasing savings. However, women are less likely to be active users of mobile money (25% of women compared to 38% of men), have an account with a financial institution. Similarly, only 44 percent of females used mobile money services in 2019/20 relative to 60 percent of the males in Uganda. This implies significant challenges to overcome in ensuring inclusivity in the transformation to a digital society. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:1dcacb20-d595-46e4-a107-5809dac1dbd1 |