scholarly journals Financial Inclusion in Ethiopia: Is It on the Right Track?

2020 ◽  
Vol 8 (2) ◽  
pp. 28 ◽  
Author(s):  
Tekeste Berhanu Lakew ◽  
Hossein Azadi
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Secondary Data ◽  
Financial Inclusion ◽  
East African ◽  
African Countries ◽  
Regulatory Guidelines ◽  
The Government ◽  
The Right ◽  
The Impact

It is important to evaluate the impact of Ethiopia’s financial inclusion strategy since it has been launched in 2014. Accordingly, this paper assesses the extent to which the target has been met. The main aim of this study is to measure the success or failure of Ethiopia’s financial inclusion in comparison with other countries in East Africa. Using secondary data, this study revealed that Ethiopia’s financial inclusion is not as successful as other East African countries. This study also found that Ethiopians prefer informal saving clubs rather than formal financial organs. This preference, combined with unemployment and low income, is the barrier to the financial inclusion strategy. Based on the findings, identifying and addressing root causes should be done by removing distance, cost, credit, and documentation barriers. Moreover, the findings showed that access to public transit can also expand the reach of formal financial institutions by encouraging more people to physically access financial institutions. This study recommended access to formal financial organs as a core to financial institutions. Access to formal financial organs should be boosted through increasing financial institutions. Educating individuals about their financial circumstances were also recommended so that people can increase their formal saving uptake. This paper also recommended that the government develop regulatory guidelines for the functioning of financial institutions. The main outcome, therefore, is that financial institutions could be more transparent and predictable, reduce costs, and simplify the rules for entering the market.

scholarly journals Kenya’s Standard Gauge Railway Project in the Context of Theory and Practice of Regional Planning

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Leanard Otwori Juma ◽  
Fredrick Adol Gogo ◽  
Ahmed Abduletif Abdulkadr ◽  
Dénes Dávid Lóránt
Keyword(s):  
Regional Planning ◽  
Secondary Data ◽  
Theory And Practice ◽  
Economic Activities ◽  
East African ◽  
African Region ◽  
African Countries ◽  
Transportation Services ◽  
Goods And Services ◽  
The Impact

Despite most African countries having immense natural and human resources potential, the continent has mostly been lagging on matters of economic development. This scenario could primarily be attributed to weak intra-regional and inter-country trade given the poor connectivity, quality, and diversity in transportation services and infrastructure. In this regard, the governments of the greater East African Region representing Tanzania, Rwanda, Burundi, Uganda, South Sudan, Ethiopia and Kenya, therefore, mooted a coordinated vision to develop interlinked regional infrastructure in road and rail transport to allow smooth movement of goods and services.  This paper aimed to critically review the impact of the SGR development on Kenya in the context of regional planning and development. The methodology of the study was a critical review of existing literature and secondary data. Study findings indicated that the development of the (Standard Gauge Railway) SGR is in tandem with the development strategies of other East African Countries. Its development is incorporated in national spatial plans with the rail route targeting regions with viable populations and sustainable economic activities. Criticisms, however, revolve around the ballooning debt to finance infrastructural development and lack of prioritization f mega projects. In conclusion, despite the financial constraints, the SGR is viewed to significantly influence the socio-economic spheres while presenting challenges in the management of landscapes where it traverses in Kenya and the Region.

scholarly journals FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG SMALLHOLDER FARMERS IN ZIMBABWE

2020 ◽  
Vol 8 (3) ◽  
pp. 168-182
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Tankiso Moloi ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Financial Education ◽  
Financial Inclusion ◽  
Strong Impact ◽  
Development Goals ◽  
The Government ◽  
The Impact

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

Can financial inclusion reduce the presence of corruption? Evidence from selected countries in Africa

2020 ◽  
Vol 47 (11) ◽  
pp. 1345-1362
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Random Effect ◽  
Secondary Data ◽  
Threshold Level ◽  
Financial Inclusion ◽  
Least Square ◽  
African Countries ◽  
Content Type ◽  
The Impact ◽  
Control Of Corruption

PurposeThe purpose of this paper is to evaluate the impact of financial inclusion (FI) on control of corruption in selected African countries.Design/methodology/approachThe study employs secondary data spanning over a period of 2005–2016. These data are sourced from IMF's International Financial Statistics, World Bank Development Indicators, Global Financial Development Database, Transparency International and International Country Risk Guide. The author uses Sarma (2008) approach to construct the FI index for 13 countries in Africa. The author applies random effect, robust least square and instrumental variable (IV) estimations to examine the impact of FI on control of corruption in Africa.FindingsThe author finds that financial inclusion improves the control of corruption. The author tests for possible FI threshold to avoid the case of extreme FI in Africa. The results show that there is a threshold level if reached, FI would have negative impacts in the control of corruption. This may likely happen mainly due to weak institutions in Africa. The results are robust to alternative proxy for control of corruption and various alternative estimation techniques.Practical implicationsThe finding indicates that FI can serve as part of toolkits for reducing corruption in Africa.Originality/valueThis study stresses the important role of FI in the economic system. It is the first paper that empirically suggests the role of FI in controlling corruption in Africa.

scholarly journals The Right to Education and ICT during COVID-19: An International Perspective

2020 ◽  
Vol 12 (21) ◽  
pp. 9091
Author(s):  
Luis Miguel Lázaro Lorente ◽  
Ana Ancheta Arrabal ◽  
Cristina Pulido-Montes
Keyword(s):  
Low Income ◽  
International Perspective ◽  
School Closure ◽  
Global Perspective ◽  
Low Income Countries ◽  
Right To Education ◽  
The World ◽  
The Government ◽  
The Right ◽  
The Impact

There is a lack of concluding evidence among epidemiologists and public health specialists about how school closures reduce the spread of COVID-19. Herein, we attend to the generalization of this action throughout the world, specifically in its quest to reduce mortality and avoid infections. Considering the impact on the right to education from a global perspective, this article discusses how COVID-19 has exacerbated inequalities and pre-existing problems in education systems around the world. Therefore, the institutional responses to guaranteeing remote continuity of the teaching–learning process during this educational crisis was compared regionally through international databases. Three categories of analysis were established: infrastructure and equipment, both basic and computer-based, as well as internet access of schools; preparation and means of teachers to develop distance learning; and implemented measures and resources to continue educational processes. The results showed an uneven capacity in terms of response and preparation to face the learning losses derived from school closure, both in low-income regions and within middle- and high-income countries. We concluded that it is essential to articulate inclusive educational policies that support strengthening the government response capacity, especially in low-income countries, to address the sustainability of education.

scholarly journals Financial Inclusion and Financial Literacy in Low Income Group in Emerging Economy

2020 ◽  
Vol 6 (4) ◽  
pp. 1001-1008
Author(s):  
Hina Affandi ◽  
Qaisar Ali Malik
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Financial Literacy ◽  
Relevant Literature ◽  
Financial Inclusion ◽  
Primary Data ◽  
Street Vendors ◽  
Policy Makers ◽  
Financial Products ◽  
The Impact

Purpose: Financial institutions engage in performing imperative part in the economic development of an economy through circulation of funds that resulting in employment and fair distribution of limited resources. Financial literacy results in usage of financial product and services provided by financial institutions that lead to pervasive growth of an economy. Financial inclusion takes into loop the excluded segment of a developing country to attain the desired financial and economic outcomes. Recognizing the importance of financial inclusion, this study is executed to investigate the impact of financial literacy on financial inclusion in street vendors. Design/methodology/approach: This study was conducted in twin cities Islamabad and Rawalpindi. Snowball and purposive sampling technique has been used in this study. Primary data has been collected from street vendors through semi structure interviews and questionnaire. Participatory action research design is used in this study. Deductive approach has been used for qualitative data analysis. Findings: The results of this study found that street vendors only name financial institutions. They don’t have knowledge about financial products and services provided by those financial institutions. Because of inadequate knowledge, majority of the street vendors do not use financial products and services which are available to them. A very small number of street vendors are using financial products and services. The expected outcomes of this study set a direction for policy makers of financial institutions about how to increase financial inclusion by considering the observed relations in this study. Practical implications: The results will help policy makers in formulating effective strategies to bring into the net that excluded segment, which if included will not only improve their quality of life but also augment to the sustainability and growth of economy through financial inclusion. Originality/value: As suggested by the recent relevant literature, the study is an attempt to identify those antecedents of financial inclusion, which has not been explored earlier in context of Pakistan, to extend the earlier findings through qualitative research method and to establish how financial inclusion can be made a success in achieving its desired outcomes in a developing economy.

scholarly journals Industry 4.0 in Finance: The Impact of Artificial Intelligence (AI) on Digital Financial Inclusion

2020 ◽  
Vol 8 (3) ◽  
pp. 45 ◽  
Author(s):  
David Mhlanga
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Low Income ◽  
Small Businesses ◽  
Scale Up ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Customer Support ◽  
Documentary Analysis ◽  
The Impact

This study sought to investigate the impact of AI on digital financial inclusion. Digital financial inclusion is becoming central in the debate on how to ensure that people who are at the lower levels of the pyramid become financially active. Fintech companies are using AI and its various applications to ensure that the goal of digital financial inclusion is realized that is to ensure that low-income earners, the poor, women, youths, small businesses participate in the mainstream financial market. This study used conceptual and documentary analysis of peer-reviewed journals, reports and other authoritative documents on AI and digital financial inclusion to assess the impact of AI on digital financial inclusion. The present study discovered that AI has a strong influence on digital financial inclusion in areas related to risk detection, measurement and management, addressing the problem of information asymmetry, availing customer support and helpdesk through chatbots and fraud detection and cybersecurity. Therefore, it is recommended that financial institutions and non-financial institutions and governments across the world adopt and scale up the use of AI tools and applications as they present benefits in the quest to ensure that the vulnerable groups of people who are not financially active do participate in the formal financial market with minimum challenges and maximum benefits.

The analysis of evolution in eradicating mortalities caused by infectious diseases in East and Central African Countries coinciding with gross national income

2019 ◽  
Author(s):  
Xiao Haijun ◽  
Jean Pierre Namahoro
Keyword(s):  
Infectious Diseases ◽  
Low Income ◽  
National Income ◽  
Gross National Income ◽  
Low Income Countries ◽  
East African ◽  
African Countries ◽  
National Budget ◽  
Study Results ◽  
The Government

Abstract Background: Infectious diseases are predominantly within poor population living in low-income countries, while are either treatable or preventable with existing medicines in the first occurring. The highlighted cause is some government choose to spend national budget on several projects do not coincide the basic needs and demands of the population. The objectives of this study were to 1) compare the performance between new cases and deaths caused by diseases; 2) show the effect of gross national income (GNI) in the mortalities reduction, and 3) assess potential evolution in eradicating mortalities in East African countries. Method: WHO database contains data on several responses (new cases of Malaria, Neonates protected at birth against neonatal tetanus, mortalities from tuberculosis among HIV-negative people and new cases of leprosy) recorded from 2004 to 2015. IMB SPSS modeler and Origin 8 were used especially, One-way ANOVA and Pearson’s correlation to achieve the objectives of the study. Results: The p-values for either Levene’ and Brown-Forsythe compared with 0.05 significant level for testing the performance between countries, correlation between GNI with leprosy is -0.5 to -1.0, in five countries, with TB is closer t0 -1.0 in four countries, with deaths from Malaria, is -0.5 to -1.0 in three countries, and new cases from Malaria and protected neonates is 0.5 to 1.0. Conclusion: The relationship between GNI and new cases and deaths indicate the weak effect of GNI in the process of eradicating mortalities, therefore, the government should prioritize the healthcare and use a national budget to monitoring the all complications related to infectious diseases. Key wards: infectious diseases, eradicating mortalities, gross national income

scholarly journals A Legal Analysis of the Use of Innovative Technology in the Promotion of Financial Inclusion for Low-Income Earners in South Africa

2021 ◽  
Vol 24 ◽  
pp. 1-27
Author(s):  
Howard Chitimira ◽  
Phemelo Magau
Keyword(s):  
South Africa ◽  
Financial Institutions ◽  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Informal Settlements ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Financial Exclusion ◽  
The Government

The promotion of financial inclusion is important for the combating of financial exclusion in many countries, including South Africa. Nonetheless, most low-income earners living in rural areas and informal settlements are still struggling to gain access to basic financial products and financial services in South Africa. This status quo has been caused by a number of factors such as the absence of an adequate financial inclusion policy, the geographical remoteness of financial institutions to most low-income earners, rigid identity documentary requirements, a lack of access to reliable and affordable Internet connection by low-income earners living in informal settlements and rural areas, a lack of financial illiteracy, the high costs of financial services, unemployment and poverty, over-indebtedness, and cultural and psychological hindrances to low-income earners in South Africa. Consequently, these factors have somewhat limited the access to financial services offered by financial institutions to low-income earners living in rural areas and informal settlements. In many countries, including South Africa, the financial sector is relying on innovative technology, especially in banking institutions, to aid in the offering of financial services to their customers. It is against this background that this article discusses selected legal and related challenges affecting the regulation and use of innovative technology to promote financial inclusion for low-income earners in South Africa. The article further discusses possible measures that could be adopted by the government, financial institutions and other relevant regulatory bodies to promote the use of innovative technology to combat the financial exclusion of low-income earners in South Africa.

Modelling the impact of the COVID-19 pandemic on South African livelihoods

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benjamin Aye Simon ◽  
Isaac Khambule
Keyword(s):  
South African ◽  
Low Income ◽  
Developing Economies ◽  
National Income ◽  
Secondary Data ◽  
Content Type ◽  
Black African ◽  
The Government ◽  
The Impact ◽  
Low Income Households

PurposeThe coronavirus disease 2019 (COVID-19)-induced declining economic prospects and accompanying economic shocks present socioeconomic vulnerabilities for developing economies at the tranches of poverty, unemployment and minimal social security. South Africa is one of the countries that have the most precarious societies in developing nations due to the triple challenges of unemployment, poverty and inequality. As such, this paper investigates the impact of the pandemic on South African livelihoods.Design/methodology/approachThis paper uses secondary data obtained from the National Income Dynamics Study – Coronavirus Rapid Mobile Survey (NIDS-CRAM) Wave 1 dataset to analyse the impact of COVID-19 on South African livelihoods.FindingsThe findings reveal that COVID-19 amplified the country's poor and vulnerable population's socioeconomic conditions because of the stringent Level 5 lockdown regulations that barred low-income households from making a livelihood. It further revealed that low-income households, who are the least educated, Black African, female and marginalized, were disproportionally socioeconomically affected by losing the main household income.Research limitations/implicationsThe research is limited in that it used secondary quantitative data that relied on a telephonic survey during the COVID-19 lockdown period.Practical implicationsThis study offers a policy suggestion that increasing social grants during the pandemic will not have any significant impact on the livelihoods of many South Africans unless distributional inequalities are reduced.Social implicationsThe government needs to develop welfarist policies to protect the most vulnerable in society to limit the socioeconomic impact of pandemics and take proactive policy measures to reduce unemployment and income inequalities in the country.Originality/valueThe paper contributes to understanding the precarious nature of low-income households.

Analysis Of Perception Of Rural People Towards Socio-Economic Impact Of Financial Inclusion – A Case Study Analysis

GIS Business ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 278-291
Author(s):  
Dr. Parasharam. A. Patil ◽  
Dr. R. A. Sathish
Keyword(s):  
Economic Impact ◽  
Financial Institutions ◽  
Low Income ◽  
Policy Development ◽  
Regulatory Reform ◽  
Financial Inclusion ◽  
Rural People ◽  
Low Income Families ◽  
The Government ◽  
Socio Economic Impact

The governments of India and other developing countries have made Financial Inclusion a priority – evidenced by policy development, regulatory reform and new funding vehicles. The government of India has set a target of reaching full inclusion by 2015. These objectives will be achieved through financial instruments, such as micro credit, which has achieved positive results, helping thousands of the world’s poor to lift themselves out of poverty. This paper examines the socio-economic impact of financial inclusion on rural people in Goa.   It is now well understood that financial inclusion helps the poor in more viable and profitable way by providing them ability to do business with banks and other financial institutions. The provision of uncomplicated, small, affordable products can help bring low-income families into the formal financial sector. Taking into account their seasonal inflow of income from agricultural operations, migration from one place to another, and seasonal and irregular work availability and income, the existing financial system needs to be designed to suit their requirements. Mainstream financial institutions such as banks have an important role to play in this effort, not as a social obligation, but as a pure business proposition.  

Sign in / Sign up

Export Citation Format

Share Document