Exploring financial inclusion dimensions: a comparative assessment of performance of Sub-Saharan Africa (SSA) Countries

Oladotun Larry Anifowose and Bibi Zaheenah Chummun
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Oladotun Larry Anifowose: University of KwaZulu-Natal, South Africa
Bibi Zaheenah Chummun: University of KwaZulu-Natal, South Africa

International Journal of Business Ecosystem & Strategy (2687-2293), 2025, vol. 7, issue 4, 139-149

Abstract: Globally, financial inclusion is regarded as being crucial for balancing an economy's financial system. However, despite the significance of financial inclusion, it still needs to be clarified to what extent it is practiced. In this study, the assessment of the performance of the 49 Sub Saharan Africa (SSA) countries as regards financial inclusion was carried out through the construction of a single composite Financial Inclusion Index (FII) to capture the four dimensions of financial inclusion. Z-sum score and Principal Component Analysis (PCA) was deployed to analyse the secondary data spanning from 1999 to 2023. The decision rule deployed was that if a value for Financial Inclusion Index (FII) from zero to forty-nine (0-49) this shows that there is low financial inclusion; medium financial inclusion from fifty to sixty-nine (50-69) while, a value from seventy and above (70- above) denotes the high financial inclusion) for the study period. The result revealed that all SSA countries are low that is they fall into between zero (0) to forty-nine (49) in the composite financial inclusion index in line with the decision rule. Also, the result indicated that Sao-Tome and Principe was the best performing SSA country with the highest financial inclusion penetration per thousand considered during the period of the study. Key Words:Dimension of Financial inclusion, Financial Inclusion Index (FII), Principal Component Analysis (PCA), Sub-Saharan Africa Countries (SSA).

Date: 2025
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