Contribution to the Measurement of Digital Financial Inclusion in Sub-Saharan Africa

Despite the notable progress made in the development of digital financial services in sub-Saharan Africa, no comprehensive measure is currently available to quantify this progress. This digital financial inclusion index was constructed using a parametric approach. The findings show an upward trend in digital financial inclusion from 2014 to 2021, with a notable increase observed in this index in 2021. 

Based on the instrumental variable approach, the study found that COVID-19, growth product per capita, and quality of governance were the main drivers of digital financial inclusion. Furthermore, findings reveal that not all sub-Saharan African countries have benefited equally from the digital financial revolution. While Kenya, Ghana, and Côte d’Ivoire have benefited substantially, countries such as Malawi, Guinea, Burkina Faso, and Mali have fallen behind in terms of digital financial inclusion and are reaping fewer benefits from the revolution in digital banking.