Toward Inclusive Digital Finance in Africa: Unpacking the Mechanisms Behind Digital Barriers

Zakaria Elouaourti and Elhadj Ezzahid

African Development Review, 2026, vol. 38, issue 2

Abstract: Digital financial inclusion is a crucial driver of economic development in Africa, yet significant barriers persist, particularly for marginalized groups. This study examines the key determinants and barriers to digital financial inclusion in Africa using micro‐level data from 29,042 adults in the World Bank Global Findex database. Our findings highlight the critical role of education, labor market participation, and access to information and communication technologies (ICT) in facilitating digital financial inclusion. However, African women and low‐income individuals face substantial obstacles, including limited access to mobile phones, high transaction costs, lack of official documentation, and reliance on intermediaries. Education emerges as a powerful enabler, significantly increasing the likelihood of using digital financial services. Importantly, our study distinguishes between voluntary exclusion and involuntary barriers, shedding light on systemic constraints that prevent individuals from participating in digital finance. By identifying these structural limitations, our research provides a nuanced understanding of digital financial exclusion in Africa and informs targeted policy interventions to bridge the financial divide.

Date: 2026
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