Promoting Financial Inclusivity, a Route to Economic Growth: An Empirical Analysis from Sub-Saharan African Countries

Abstract

This study examines the relationship between financial inclusion and per capita income growth for 42 sub-Saharan African countries from 2007 to 2020. Using the Generalized Method for Moments framework, this study discloses that a rise in the number of bank branches, automated teller machines, and savings stimulates per capita economic growth. Conversely, an elevated number of credit provisions to the private sector and high growth of population hinder per capita economic growth. The policy recommendation is for banking authorities to expand their services to underserved areas, raise interest rates on deposits, and decrease credit provision to the private sector.