Promoting Financial Inclusion for Inclusive Growth in Africa
Promoting Financial Inclusion for Inclusive Growth in Africa

Author: Chijioke Kennedy Oji

Publisher:

Published: 2015

Total Pages: 16

ISBN-13:

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"Financial inclusion is central to economic empowerment in rural communities, as it forms the foundation for the sustainable economic development of the less privileged in society. By engaging in economic activities where goods and services are traded for cash, people become part of economic clusters. The amalgamation of economic clusters has an impact on the growth of local economic systems, resulting in sustained development. Thus, in order for sustained socio-economic development to occur, people should be encouraged to engage in more economic activities where financial transactions take place. To do this, people often need to have bank accounts at formal financial institutions. However, studies have shown that there are numerous barriers preventing especially the rural poor from entering the formal financial system. Some of these barriers include strict 'Know Your Customer' regulations, the cumbersome paperwork associated with opening banking accounts, mandatory deposits, bank charges and the distance from villages to towns, where most formal financial institutions are normally located. Considering this, many rural people may opt to use informal financial institutions, which are risky and mostly unregulated. This paper aims to highlight the importance of financial inclusion for development in rural African communities. An overview is given of financial inclusion in Africa and of the methods through which the financially excluded 'bank' their money and obtain credit. The paper also looks at selected informal remittance mechanisms used by the rural poor to transfer and receive money. In addition, the concept of financial inclusion is presented in context, looking at financial literacy as the element needed to sustain the economic effects of reducing financial exclusion in Africa. Important initiatives to increase financial literacy are highlighted and the challenges faced in increasing financial inclusion in Africa are examined. The paper concludes with policy recommendations to promote financial inclusion"--Publisher's web site.

Extending Financial Inclusion in Africa
Extending Financial Inclusion in Africa

Author: Daniel Makina

Publisher: Academic Press

Published: 2019-06-09

Total Pages: 342

ISBN-13: 0128142030

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Extending Financial Inclusion in Africa unveils the genesis and transformation of Africa’s financial sector and its ability to provide finance for all. Contributors of the Book traverse the whole spectrum of African financial systems, examining their depth and breadth and empirically evaluating their appropriateness and effectiveness to achieve inclusive financial services. Explores the evolution of the financial sector in Africa from the pre-colonial to post-colonial era Investigates the financial inclusion–economic growth nexus Explores the role of financial regulation and governance in either enhancing or limiting financial inclusion Evaluates unintended consequences of financial inclusion, including over-indebtedness and increased propensity to spend Assesses cross-sectional evidence on the link between financial inclusion and technological developments such as the internet and mobile technology

Financial Development in Sub-Saharan Africa
Financial Development in Sub-Saharan Africa

Author: Mr.Montfort Mlachila

Publisher: International Monetary Fund

Published: 2016-09-14

Total Pages: 79

ISBN-13: 1475536356

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This paper discusses how sub-Saharan Africa’s financial sector developed in the past few decades, compared with other regions. Sub-Saharan African countries have made substantial progress in financial development over the past decade, but there is still considerable scope for further development, especially compared with other regions. Indeed, until a decade or so ago, the level of financial development in a large number of sub-Saharan African countries had actually regressed relative to the early 1980s. With the exception of the region’s middle-income countries, both financial market depth and institutional development are lower than in other developing regions. The region has led the world in innovative financial services based on mobile telephony, but there remains scope to increase financial inclusion further. The development of mobile telephone-based systems has helped to incorporate a large share of the population into the financial system, especially in East Africa. Pan-African banks have been a driver for homegrown financial development, but they also bring a number of challenges.

Achieving Financial Stability and Growth in Africa
Achieving Financial Stability and Growth in Africa

Author: Stephany Griffith-Jones

Publisher: Routledge

Published: 2016-03-24

Total Pages: 219

ISBN-13: 1317301684

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This book explores how the financial system should be regulated and structured to achieve the twin goals of inclusive growth and financial stability, with a focus on African low-income countries (LICs). The subject and content of this book is original in that it attempts to draw on the lessons and radical rethinking on the financial sector in developed and middle income countries, arising in the wake of the international financial crisis. It includes four in- depth country case studies, of Kenya, Ghana, Nigeria and Ethiopia, but also analyses the empirical evidence for Sub-Saharan Africa as a whole, evaluating the relevance (or not) of such major changes for the very different financial sectors and economies in low income countries. Achieving Financial Stability and Growth in Africa has major academic and policy implications, especially for low income countries, but also more generally, on broader issues. These include the desirable size of the financial sector, as well as more specific issues, such as the high cost of borrowing of small and medium enterprises in LICs, and possible measures to reduce it. Highly topical subjects like the appropriate regulation of the financial sector and management of capital flows are discussed in depth. Though drawing on comprehensive reviews of the literature, this volume has the virtue of the large comparative academic and policy experience of researchers, as well as in-depth case studies, that take account of institutional and economic features of low- income countries. Written by senior academics and policy-makers, this book is a must read for those researching or participating in the financial sectors of low-income countries, as well as in developed economies. It is also suitable for those who study political economy and public finance.

Transforming Africa
Transforming Africa

Author: Dana T. Redford

Publisher: Emerald Group Publishing

Published: 2022-01-26

Total Pages: 304

ISBN-13: 1802620532

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Transforming Africa: How Savings Groups Foster Financial Inclusion, Resilience and Economic Development presents in-depth empirical research into current day savings group activities across Africa, exploring savings groups through the lens of financial inclusion and reflecting on formal finance, economic and social outcomes.

Financial Inclusion and Development in the CEMAC
Financial Inclusion and Development in the CEMAC

Author: Adrian Alter

Publisher: International Monetary Fund

Published: 2015-11-09

Total Pages: 31

ISBN-13: 1513570188

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This paper examines financial inclusion and development in the CEMAC. We explore the level of financial inclusion in the CEMAC through a benchmarking exercise.We construct a measure of financial development gap and analyze its determinants. Using panel data regressions, we find that inflation, income, and natural resources explain most of the financial development level but that better financial sector governance and stronger economic governance are positively associated with financial sector development. Richer and poorer countries can be equally far from their expected financial development levels. Finally, we use a benchmarking exercise to identify countries that have successfully reduced the financial development gap and propose policy measures that CEMAC countries could use to boost financial inclusion.

Financial inclusion
Financial inclusion

Author: Munacinga C. Simatele

Publisher: AOSIS

Published: 2022-02-15

Total Pages: 316

ISBN-13: 1776341813

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Financial inclusion has been noted as a key driver of poverty alleviation and growth. Yet, most of the scholarly work that exists lacks a comprehensive discussion of how the poor interact with financial services and the channels through which such services can affect their livelihoods. This book offers researchers who focus on financial inclusion and African economies a one-stop resource for understanding the channels of transmission for financial inclusion as well as an application of these channels through original country-specific empirical papers. The book provides a back-to-basics presentation of the transmission of financial services to growth and poverty. This theoretical discussion is complemented by an empirical presentation of the various services used by the poor, with a focus on Africa. Case studies of financial inclusion in six African countries cover a broad range of topics most important to African countries and highlight the unique African setting. These empirical papers provide important learning points. Firstly, hybrid financial institutions such as cooperative financial institutions and financial social entrepreneurs are the best way to increase financial inclusion in Africa. They provide important vehicles to circumvent the restrictive and exclusive bank-based financial markets typical of African economies. Secondly, digital finance is a potent tool for improving financial access and usage in Africa, and its impact on poverty operates through both traditional and nontraditional financial instruments. Thirdly, investment in infrastructure which supports complementary markets is critical and is likely to have a greater effect on credit rationing than direct provision of credit to small businesses.

Developing Africa’s Financial Services
Developing Africa’s Financial Services

Author: Dana T. Redford

Publisher: Emerald Group Publishing

Published: 2017-05-11

Total Pages: 313

ISBN-13: 178714187X

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Financial services are an essential element in powering entrepreneurial activity beyond resource extraction in Africa. This book examines the macro-trends and highlights inspiring success stories of entrepreneurial financial sector ventures that are making a lasting contribution to the economic development of various sub-Saharan African countries.

Promoting and Prioritising Financial Inclusion in Southern Africa
Promoting and Prioritising Financial Inclusion in Southern Africa

Author: Howard Chitimira

Publisher:

Published: 2023

Total Pages: 0

ISBN-13: 9781485150169

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"The book Promoting and Prioritising Financial Inclusion in Southern Africa: A Contemporary Law and Economics Perspective is written in the backdrop of Africa emerging as the world's second fastest developing continent, behind Asia. Africa has had annual Gross Domestic Product growth rates in excess of five percent over the last decade. Unfortunately, Africa's rapid economic expansion has not resulted in shared wealth or better living conditions for the majority of its people. Contributors to the book underline the importance of inclusive economic success in order to be socially and politically sustainable, with a specific emphasis on Southern Africa. Financial inclusion is a critical component of inclusive development, and Southern African countries, like the rest of Africa, have lagged behind other continents in this area. Fewer adults in Southern Africa have access to a formal financial institution account. According to the book, increasing access to financial services will mobilise more household savings, attract capital for investment, enlarge the class of entrepreneurs, and allow more individuals to invest in themselves and their families. Financial inclusion is required to ensure that economic growth is inclusive and sustainable. All measures that make formal financial services available, accessible and affordable to all segments of the population are referred to as financial inclusion. This necessitates paying special attention to segments of the population who have historically been excluded from the formal financial system, whether due to their income level and volatility, gender, geography, kind of activity, or degree of financial knowledge. In doing so, there is a need to tap the untapped potential of those individuals and businesses who are currently excluded from or underserved by the formal financial sector, allowing them to build capacity, strengthen their human and physical capital, engage in income-generating activities, and manage risks associated with their livelihoods."--

Promoting Inclusive Growth in the Middle East and North Africa
Promoting Inclusive Growth in the Middle East and North Africa

Author: Mr. Roberto Cardarelli

Publisher: International Monetary Fund

Published: 2022-10-11

Total Pages: 150

ISBN-13:

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Despite some pre-pandemic gains in poverty reduction, literacy, and lifespans, many economies in the Middle East and North Africa (MENA) have struggled to ensure that the benefits of economic development and diversification accrue equitably to all segments of their populations. Among the main issues that remain unresolved are the high share of inactive youth (who are not engaged in employment, education, or training); large gaps in economic opportunities for women; fragmented social protection systems; and underdeveloped private sectors with tight regulation, absence of a level playing field, and limited access to credit that stifle the creation of new firms and growth, employment, and incomes. The COVID-19 pandemic not only risks wiping out some of the progress made in the region over the past decades, but could also exacerbate inequality in a durable way. There is evidence that the impact of the pandemic has been uneven across groups, with the recession having a disproportionate effect on the low-skilled, the young, women, and migrant workers in employment and incomes. With widespread inequality, high unemployment, and the expected entry of 27 million young people into the labor force over the next 10 years, countries across the MENA region need to evolve their economic models to boost job creation and make sure that the benefits of economic development are shared more widely among all their citizens. This book’s objective is to reassess the inclusive growth agenda in the MENA region in light of the rapidly changing pandemic-influenced world. It argues that countries need to embrace global trade and technological advances and evolving demographics at home as an opportunity to successfully implement policies that foster higher and more inclusive growth. It underscores that a return to the old social contract is neither desirable nor feasible. The book presents a comprehensive view of policies suited to the regional context that would boost job-rich and inclusive growth within a resilient macroeconomic policy framework. Its goal is to provide guidance to policymakers in the region to frame how best to promote inclusive growth, including in their engagement with all stakeholders.