Brief Review of Informal Financial Services Typologies in Zambia: Investing in Sustainable Savings Groups

Informal financial services (IFSs) provide various types of investment avenues for both rural and urban populations in Zambia. This paper is a critical review of the sustainability of various informal investment typologies Zambians has been using and adopting to increase their financial resources and solve their livelihoods and social issues in the process. An evaluation of why people and organizations opt for specific financial services that come in the form of savings and lending groups will be discussed in detail to understand if they have been meeting people's expectations. The paper derives its data from various studies in the past 10 years that emanates from Zambia and Sub-Saharan Africa. While the sustainability of various typologies of informal financial services is broad, they are measured through risks associated, savings policies adopted, group loan guarantees and flexibility, interest and transactional expenses enforcement, income-generating, wealth creation and any social capital investment. The research reveals that limited studies have looked at various typologies of savings and lending groups, including evaluating their sustainability. This study helps in decision making for anyone or organization who would want to join or start a savings group in Zambia and key parameters to follow.

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Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

Sustainability ◽

10.3390/su13041780 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1780

Author(s):

Chima M. Menyelim ◽

Abiola A. Babajide ◽

Alexander E. Omankhanlen ◽

Benjamin I. Ehikioya

Keyword(s):

Economic Growth ◽

Income Inequality ◽

Financial Services ◽

Sub Saharan Africa ◽

Kuznets Curve ◽

African Countries ◽

Financial Access ◽

Sub Saharan ◽

Sustainable Economic Growth ◽

The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

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Decomposing the rural–urban gap in factors associated with childhood immunisation in sub-Saharan Africa: evidence from surveys in 23 countries

BMJ Global Health ◽

10.1136/bmjgh-2020-003773 ◽

2021 ◽

Vol 6 (1) ◽

pp. e003773

Author(s):

Edward Kwabena Ameyaw ◽

Yusuf Olushola Kareem ◽

Bright Opoku Ahinkorah ◽

Abdul-Aziz Seidu ◽

Sanni Yaya

Keyword(s):

Decomposition Analysis ◽

Household Wealth ◽

Sub Saharan Africa ◽

Demographic And Health Surveys ◽

Childhood Immunisation ◽

Urban Settings ◽

Factors Associated ◽

Rural And Urban ◽

Full Immunisation ◽

Sub Saharan

BackgroundAbout 31 million children in sub-Saharan Africa (SSA) suffer from immunisation preventable diseases yearly and more than half a million children die because of lack of access to immunisation. Immunisation coverage has stagnated at 72% in SSA over the past 6 years. Due to evidence that full immunisation of children may be determined by place of residence, this study aimed at investigating the rural–urban differential in full childhood immunisation in SSA.MethodsThe data used for this study consisted of 26 241 children pooled from 23 Demographic and Health Surveys conducted between 2010 and 2018 in SSA. We performed a Poisson regression analysis with robust Standard Errors (SEs) to determine the factors associated with full immunisation status for rural and urban children. Likewise, a multivariate decomposition analysis for non-linear response model was used to examine the contribution of the covariates to the observed rural and urban differential in full childhood immunisation. All analyses were performed using Stata software V.15.0 and associations with a p<0.05 were considered statistically significant.ResultsMore than half of children in urban settings were fully immunised (52.8%) while 59.3% of rural residents were not fully immunised. In all, 76.5% of rural–urban variation in full immunisation was attributable to differences in child and maternal characteristics. Household wealth was an important component contributing to the rural–urban gap. Specifically, richest wealth status substantially accounted for immunisation disparity (35.7%). First and sixth birth orders contributed 7.3% and 14.9%, respectively, towards the disparity while 7.9% of the disparity was attributable to distance to health facility.ConclusionThis study has emphasised the rural–urban disparity in childhood immunisation, with children in the urban settings more likely to complete immunisation. Subregional, national and community-level interventions to obviate this disparity should target children in rural settings, those from poor households and women who have difficulties in accessing healthcare facilities due to distance.

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Community-driven citizen science approach to explore cardiovascular disease risk perception, and develop prevention advocacy strategies in sub-Saharan Africa: a programme protocol

Research Involvement and Engagement ◽

10.1186/s40900-020-00246-x ◽

2021 ◽

Vol 7 (1) ◽

Author(s):

Kufre Joseph Okop ◽

Kathy Murphy ◽

Estelle Victoria Lambert ◽

Kiya Kedir ◽

Hailemichael Getachew ◽

...

Keyword(s):

Cardiovascular Disease ◽

Citizen Science ◽

Risk Perceptions ◽

Disease Risk ◽

Cardiovascular Disease Risk ◽

Data Gathering ◽

Lessons Learned ◽

Sub Saharan Africa ◽

Rural And Urban ◽

Sub Saharan

Abstract Background In sub-Saharan Africa (SSA), which experiences a disproportionately high cardiovascular disease (CVD) burden, population-based screening and prevention measures are hampered by low levels of knowledge about CVD and associated risk factors, and inaccurate perceptions of severity of risk. Methods This protocol describes the planned processes for implementing community-driven participatory research, using a citizen science method to explore CVD risk perceptions and to develop community-specific advocacy and prevention strategies in the rural and urban SSA settings. Multi-disciplinary research teams in four selected African countries will engage with and train community members living in rural and urban communities as citizen scientists to facilitate conceptualization, co-designing of research, data gathering, and co-creation of knowledge that can lead to a shared agenda to support collaborative participation in community-engaged science. The emphasis is on robust community engagement, using mobile technology to support data gathering, participatory learning, and co-creation of knowledge and disease prevention advocacy. Discussion Contextual processes applied and lessons learned in specific settings will support redefining or disassembling boundaries in participatory science to foster effective implementation of sustainable prevention intervention programmes in Low- and Middle-income countries.

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Financing innovative development of the African economies: the role of digitalization and financial innovations

RUDN Journal of Economics ◽

10.22363/2313-2329-2020-28-3-429-439 ◽

2020 ◽

Vol 28 (3) ◽

pp. 429-439

Author(s):

Tijani Forgor Alhassan ◽

Ahou Julie Kouadio ◽

Dadson Etse Gomado

Keyword(s):

Financial Development ◽

Financial Services ◽

Positive Relationship ◽

Financial Innovation ◽

Sub Saharan Africa ◽

Innovative Development ◽

Mobile Banking ◽

Data Set ◽

Financial Innovations ◽

Sub Saharan

The article examines the relationship between financial innovation (mobile banking) variables in sub-Saharan Africa. Mobile banking (also known as mobile money) is one of the main financial innovations in the sub-Saharan region, and it is a system through which non-bank residents (residents without bank accounts, etc.) receive financial services. The overall importance of financial innovation in today’s digital and knowledge-based economy, and indeed, innovative development, inspired this study. Using a partial linear regression model, we analysed the International Monetary Fund data set, the World Bank’s national economic data, and mobile banking data from GSMA for the period from 2011 to 2017. A negative correlation was found between these variables and growth, as well as financial development, but a positive relationship was established between financial development and economic development. This positive relationship re-confirms the argument that financial development affects economic growth. It is recommended that policy makers develop and implement the necessary policy tools that can promote this form of financial innovation, and thus link its benefits to the national economy in general.

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Financial well-being of customer-to-customer co-creation experience: a comparative qualitative focus group study of savings/credit groups

International Journal of Bank Marketing ◽

10.1108/ijbm-07-2020-0413 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Nkosinathi Sithole ◽

Gillian Sullivan Mort ◽

Clare D'Souza

Keyword(s):

Low Income ◽

Financial Services ◽

Well Being ◽

Social Experiences ◽

Sub Saharan Africa ◽

Focus Group Study ◽

Financial Capability ◽

Content Type ◽

Self Confidence ◽

Sub Saharan

PurposeThis paper aims to explore the effects of the customer-to-customer co-creation experiences of savings/credit groups in the African context and how savings/credit groups influence financial capability and enhance financial well-being.Design/methodology/approachUsing purposive sampling, a study of a total of 18 focus groups was conducted in sub-Saharan Africa. Nine urban-based savings/credit groups were drawn from across South Africa and additional nine, rural-based savings/credit groups were studied in the Monduli district of Tanzania.FindingsFindings demonstrate that the African philosophy of Ubuntu, which promotes customer-to-customer interaction, is the cornerstone of the customer-to-customer co-creation experience. Ubuntu philosophical principles were found to influence the dialogue, access, risk and transparency model of co-creation and customer-dominant logic. The results show further that customer-to-customer co-creation experience positively influences the cognitive, financial, personal and social experiences of members. Specifically, it was found that cognitive and financial experiences positively influence financial satisfaction, financial self-esteem, financial self-efficacy and financial capability, all of which enhance financial well-being. In addition, personal and social experiences positively influence equality, self-confidence, entrepreneurial skills and motivation that in turn enhance social well-being.Research limitations/implicationsThis study has implications for many different stakeholders concerned with the financial inclusion of low-income consumers, particularly in the southern part of Africa.Originality/valueTo the authors’ knowledge, this is the first study to explore the effects of customer-to-customer co-creation experiences in traditional financial services settings in order to understand how these indigenous financial services influence the financial capability and financial well-being of co-creation members.

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Recommendations: The Development of the Agrarian Sector, with Emphasis on Food Production and Distribution

Issue A Journal of Opinion ◽

10.1017/s0047160700500833 ◽

1988 ◽

Vol 17 (1) ◽

pp. 33-33

Author(s):

Michael F. Lofchie ◽

Gleb V. Smirnov

Keyword(s):

Food Production ◽

Agricultural Development ◽

Food Distribution ◽

Sub Saharan Africa ◽

Debt Burden ◽

Rural And Urban ◽

Ecological Problems ◽

Production And Distribution ◽

Sub Saharan ◽

Investment Goods

A critical problem for Africa is that of food production and distribution, highlighted by declines in food production, widespread hunger, and famine. There are several interrelated sources of this problem, both domestic and external. Among them are ecological problems, engendered by climatic and natural conditions; land fertility depletion in many regions of sub-Saharan Africa; the extreme scarcity of financial resources, accentuated by the debt burden and falling terms of trade; a deficit of investment goods and research and development facilities needed for agricultural development; and weaknesses in rural infrastructure, both economic and social. Unbalanced interaction between the rural and urban economies as well as archaic socioeconomic structures play a major role in the problems of food distribution, with consequent effects on food production.

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Turning on the township: financial inclusion in South Africa

European Business Review ◽

10.1108/ebr-01-2018-0030 ◽

2019 ◽

Vol 31 (3) ◽

pp. 420-446

Author(s):

Louise Whittaker ◽

Graunt Kruger

Keyword(s):

Financial Services ◽

Service Providers ◽

Financial Inclusion ◽

Subject Position ◽

Sub Saharan Africa ◽

Content Type ◽

Strategic Actions ◽

Starting Point ◽

Sub Saharan ◽

Economic Engagement

Purpose The purpose of this paper is to explore practitioner and academic conceptualisations about what drives individuals (who are the target of financial inclusion efforts) to adopt and use financial services. It compares this with individual’s personal subjectivities to understand how the similarities and differences might contribute to problems in financial inclusion efforts. Design/methodology/approach To uncover such conceptualisations, a Foucauldian discourse analysis of three texts is conducted. Findings The analysis uncovers the ways in which financial subjects are produced. Important points of discontinuity are evident between texts, pointing to potential failures within financial inclusion constructs. Distilling aspects of continuity between texts shows up three kinds of subjects produced predicated on the site of economic engagement as owners of bodies, tangible property and intangible property. These subjects are shown to all share concerns with income and expense management. The analysis shows that subject positions and strategic actions (including the use of financial service providers) are mutually reinforcing, and that therefore financial subjects will engage only to the extent that the product or service enacts their subject position. With the financial subject as the starting point, it is possible to understand the use or rejection of particular financial products and services. Research limitations/implications Asset building is proposed as a field of activity not currently considered part of mainstream financial inclusion, questioning the terms on which individuals are to be financially “included”. Originality/value Approximately 2 billion people globally, and 66 per cent of adults in sub-Saharan Africa, are excluded from the formal financial system. While financial inclusion is considered beneficial, many projects face significant challenges. This suggests insufficient understanding of what drives individuals to adopt and use financial services. This paper makes a contribution by exploring the gap between academics, practitioners and individuals using a method that has not previously been applied in this field, and uncovering differences in understanding that have not previously been explored. The insights into financial inclusion in provided in this paper are original in the literature.

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Financial Inclusion and Gender Inequality Reduction: Evidence from Sub-Saharan Africa

The Indian Economic Journal ◽

10.1177/0019466220946411 ◽

2019 ◽

Vol 67 (3-4) ◽

pp. 367-372

Author(s):

Sylvester Ohiomu ◽

Evelyn Nwamaka Ogbeide-Osaretin

Keyword(s):

Gender Inequality ◽

Financial Services ◽

Negative Impact ◽

Estimation Method ◽

Financial Inclusion ◽

Sub Saharan Africa ◽

Sub Saharan ◽

The Government ◽

And Gender ◽

The Impact

Reduced inequality and gender equality are parts of the sustainable development goals (SDGs) towards global development, but the financial sector appears daunted in respect of financial inclusion for these noble goals. Concerns are more on gender inequality in the area of full utilisation of financial and human resources. Hence, this study investigated the impact of financial inclusion on gender inequality in sub-Saharan Africa. The study employed the generalised method of moments (GMM) estimation method on panel data on some countries in sub-Saharan Africa. The result of the study revealed that financial inclusion substantially reduced gender inequality. Financial inclusion access was found to drive down gender inequality more than usage. Female educational levels were found to have a substantial but negative impact on gender inequality. This study recommends that there is a need for an increase in commercial bank branches to increase accessibility to financial services. The government should increase its expenditure, and this should be channelled towards financial development and higher levels of education for females to improve financial literacy.

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