Determinants of Financial Inclusion among Women Petty Traders in Dodoma City

Abstract

This paper assesses the determinants of financial inclusion among women petty traders in the City Council of Dodoma. Specifically, the  paper examines women's petty traders' status in using formal accounts, formal savings, formal credit, mobile money accounts, and  socio-economic determinants of financial inclusion. The paper employed a cross-sectional research design whereby structured and semi- structured interviews and documentary review methods were used for data collection. Nonprobability sampling techniques were  employed to select a sample of 200 female petty traders. The data analysis employed in this study included both inferential and  descriptive analysis. The result of the study indicates that most women petty traders use mobile money accounts and informal savings (save money at home, through Village Community Bank (VICOBA)/ person outside the home). Further, they lack enough money to open/ maintain a formal account. The binary probit model result indicates that age, years of schooling, household size, marital status, lack of  required documents, costs of financial service, and income are significant determinants of financial inclusion. Therefore, financial  institutions should offer basic or low-fee accounts with reduced/simplified documentation requirements. Government payment should  be conducted through banks to promote savings in formal financial institutions and financial literacy, and data on financial inclusion  among women petty traders should be collected and analysed to facilitate the formulation of evidence-based policy.