The Transformative Impact of Digital Financial Inclusion Among Marginalized Groups on Economic Growth

Abstract

The study empirically analyzes the effect of digital
financial inclusion on economic growth in Africa.
The digital financial inclusion variables are
ownership of digital financial devices/mobile
money accounts and usage of digital financial
services for female, poor, less educated, and
unemployed individuals in the region. Panel data is
collected from 39 African countries over three
years (2014, 2017, and 2022). The Fixed Effect (Fe)
Model and system Generalized Method of Moments
(GMM) estimation techniques are performed. The
results show a significant and positive impact of
using digital financial services on the economic
growth of all marginalized groups in Africa. This
promising finding underscores the potential of
digital financial inclusion to drive economic
growth and development. Therefore, the study
recommends that the government and other
stakeholders formulate specific policies to ensure
that marginalized groups are empowered in the
digital financial world and contribute to the overall
development of the countries on the continent.