The determinants of financial inclusion in selected African countries

Abstract

This thesis investigated the determinants of financial inclusion with the emphasis on social networks in selected African countries, namely, the Democratic Republic of the Congo, Kenya, Eswatini and South Africa. Many individuals in Africa are still excluded from using formal financial services. Low financial inclusion can result in income disparity, poverty and sluggish economic growth. The purpose of this study was to comprehend and explain financial inclusion, while examining the effects of social networks on financial inclusion. An empirical exploration was conducted to establish theoretically hypothesised relationships. The study contributed to the existing body of literature in that it determined the contribution of social networks to individual financial inclusion, a topic which had not been explored adequately. Probit models were run, using Finscope Surveys data to estimate the determinants of financial inclusion in the selected African countries. The following variables were considered: age, gender, marital status, proof of residence, bank access, location, education status, social networks, getting financial advice, monthly salary, annual income, access to internet and the use of mobile phones. Linear probability models were used to check for robustness. Robust consistent errors were used to reduce the effect of heterogeneity. The use of merged data showed that social networks significantly influence financial inclusion in most of the selected African countries, with the exception of the Democratic Republic of the Congo, although a relationship was found to exist. The results also showed that the variable ‘access to internet’ is significant in all country datasets, except for the DRC. The variable ‘getting financial advice’ is significant in all five datasets. The study recommends that the governments of the countries studied invest in improving the information and communications technology infrastructure in their countries in order to improve access to financial services and the use thereof. Finally, as part of financial inclusion, concerted efforts should be made to disseminate financial advice through the internet and social media platforms to influence how financial decisions or choices are made.

Phuputso ena e batlisitse mabaka a kenyeletso ya ditjhelete ka toboketso ya dikgokahano tsa setjhaba dinaheng tse kgethilweng tsa Afrika, e leng, Rephabliki ya Demokrasi ya Congo, Kenya, Eswatini le Afrika Borwa. Batho ba bangata Afrika ba ntse ba qhelelwa ka thoko tshebedisong ya ditshebeletso tsa ditjhelete e hlophisitsweng. Kenyeletso e tlase ya ditjhelete e ka baka ho se lekane ditabeng tsa ditjhelete, bofuma le kgolo e monyebe ya moruo. Sepheo sa phuputso ena e ne e le ho utlwisisa le ho hlalosa kenyeletso ya ditjheleteng, ha ho ntse ho hlahlojwa diphello tsa dikgokahano tsa setjhaba kenyeletsong ya ditjhelete. Patlisiso ya dinnete e ile ya etswa ho theha dikamano tse inahanelwang tsa mehopolo. Phuputso e kentse letsoho dingodilweng tse teng ka hore e lekantse tlatsetso ya dikgokahano tsa setjhaba ho kenyeletso ya ditjhelete ka bomong, sehlooho se neng se sa hlahlojwa ka ho lekana. Mokgwa wa tshusumetso o ile wa etswa, ho sebediswa dintlha tsa Diphuputso tsa Finscope ho hakanya ditekanyo tsa kenyeletso ya ditjhelete dinaheng tse kgethilweng tsa Afrika. Ho ile ha nahanwa ka dikarolo tse latelang: dilemo, bong, boemo ba lenyalo, bopaki ba bodulo, phihlello ya banka, sebaka, boemo ba thuto,dikgokahano tsa setjhaba, ho fumana dikeletso tsa ditjhelete, moputso wa kgwedi, lekeno la selemo, phihlello ya inthanete le tshebediso ya mehala ya thekeng. Mekgwa e fapaneng ya menyetla e ile ya sebediswa ho lekola matla. Diphoso tse matla tse tsitsitseng di sebedisitswe ho fokotsa phello ya ho fapana. Tshebediso ya dintlha tse kopaneng e bontshitse hore dikgokahano tsa setjhaba di susumetsa kenyeletso ya ditjhelete dinaheng tse ngata tse kgethilweng tsa Afrika, ntle le Rephabliki ya Demokrasi ya Congo, leha ele hore kamano e fumanwe e le teng. Diphetho di boetse di bontshitse hore 'phihlello ya inthanete' e fapaneng e bohlokwa ho disete tsa dintlha tsohle tsa dinaha, ntle le DRC. Mofuta o fapaneng wa 'ho fumana keletso ya ditjhelete' o bohlokwa ho disete tsohle tsa dintlha tse hlano. Phuputso e kgothaletsa hore mebuso ya dinaha tse ithutilweng e tsetele ho ntlafatseng meralo ya theknoloji ya tlhahisoleseding le dikgokahano dinaheng tsa yona e le ho ntlafatsa phihlello ya ditshebeletso tsa ditjhelete le tshebediso ya tsona. Qetellong, e le karolo ya kenyeletso ya ditjhelete, ho lokela hore ho etswe boiteko bo kopanetsweng ho phatlalatsa keletso ka tsa ditjhelete ka inthanete le dithala tsa metjha ya phatlalatso ya ditaba tsa setjhaba ho susumetsa hore na diqeto tsa ditjhelete kapa dikgetho di etswa jwang.

Lo mqondo uphenye izinkomba zokufakwa kwezezimali kugcizelelwa ukuxhumana nabantu emazweni akhethiwe ase-Afrika, okungukuthi, iDemocratic Republic of the Congo, Kenya, ESwatini kanye neNingizimu Afrika. Abantu abaningi e-Afrika basabekelwe nxanye ekusebenziseni izinsizakalo ezisemthethweni zezezimali. Ukufakwa kwezezimali okuphansi kungaholela ekungalingani kwemali engenayo, ubumpofu kanye nokukhula komnotho okuntengantengayo. Inhloso yalolu cwaningo bekuwukuqonda nokuchaza ukufakwa kwezezimali, ngenkathi kubhekwa imiphumela yokuxhumana nabantu ekufakweni kwezezimali. Ukuhlola okwenziwe ngamandla kwenziwa ukuze kusungulwe ubudlelwano obucatshangelwayo. Ucwaningo lube nomthelela ohlakeni lwezincwadi olukhona ngoba lunqume umnikelo wokuxhumana nabantu ekufakweni kwezezimali ngakunye, isihloko ebesingakahlolwa ngokwanele. Amamodeli kaProbit aqhutshwa, kusetshenziswa idatha yeZinhlolovo zikaFinscope ukulinganisa izinkomba zokufakwa kwezezimali emazweni akhethiwe ase-Afrika. Lokhu okuguqukayo okulandelayo kubhekiwe: ubudala, ubulili, isimo somshado, ubufakazi bendawo yokuhlala, ukufinyelela kwebhange, indawo, isimo semfundo, ukuxhumana nomphakathi, ukuthola izeluleko ngezezimali, umholo wanyanga zonke, imali engenayo yonyaka, ukufinyelela kuyi-inthanethi nokusetshenziswa komakhalekhukhwini. Amamodeli wamathuba wokulinganisa asetshenziselwe ukubheka ukuqina. Kusetshenziswe amaphutha angaguquki aqinile ukunciphisa umphumela wokungafani. Ukusetshenziswa kwemininingwane ehlanganisiwe kukhombisile ukuthi ukuxhumana nomphakathi kunomthelela omkhulu ekufakweni kwezezimali emazweni amaningi ase-Afrika akhethiwe, ngaphandle kweDemocratic Republic of the Congo, yize kwatholakala ukuthi kukhona ubudlelwano. Imiphumela futhi ikhombise ukuthi okuguquguqukayo 'ukufinyelela kuyi-inthanethi' kubalulekile kuwo wonke amasethi wedatha wezwe, ngaphandle kweDRC. Ukuhlukahluka 'kokuthola izeluleko zezezimali' kubalulekile kuwo wonke amasethi wedatha amahlanu. Ucwaningo luncoma ukuthi ohulumeni bamazwe abafundile batshale imali ekwenzeni ngcono ingqalasizinda yezobuchwepheshe bezokwazisa nokuxhumana emazweni abo ukuze kuthuthukiswe ukutholakala kwezinsizakalo zezezimali nokusetshenziswa kwazo. Ekugcineni, njengengxenye yokufakwa kwezezimali, kufanele kwenziwe imizamo ebumbene yokusabalalisa izeluleko zezezimali nge-inthanethi kanye nezinkundla zokuxhumana ukuze kube nomthelela ekutheni izinqumo zezimali noma ukukhetha kwenziwa kanjani.