Assessing the Effect of Financial Inclusion on Economic Growth in Zambia: A Case of Lusaka Province

Annie Shikabonga and Euston Kapotwe
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Annie Shikabonga: Graduate School of Business, University of Zambia
Euston Kapotwe: Graduate School of Business, University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 2

Abstract: The FinMark Trust developed FinScope Zambia in collaboration with the Bank of Zambia to assess levels of financial inclusion in the country. This study examined the effect of financial inclusion on economic growth in Zambia, focusing on Lusaka Province. The specific objectives were to assess the impact of financial inclusion on economic growth, identify the channels through which financial inclusion influences growth, and evaluate the effectiveness of the National Financial Inclusion Strategy interventions. A mixed-methods approach was adopted, employing both qualitative and quantitative research designs. Purposive sampling was used to select respondents meeting predefined criteria, and data were collected through structured questionnaires and interview schedules. Findings indicate that 59.1% of respondents have very easy access to banking services, while 25.9% reported somewhat easy access. Mobile banking and agency services have significantly expanded financial access, particularly for underserved populations. The study establishes a positive relationship between financial inclusion and economic growth, demonstrating that increased access to financial services enhances investment, entrepreneurship, and consumption, thereby contributing to GDP growth. However, access to specific financial products remains limited, with only 15% of respondents holding savings accounts, 19.5% accessing credit facilities, and 13.6% having insurance coverage. Additionally, 74.1% reported lack of access to finance for agricultural productivity. The findings further reveal that access to formal savings influences consumption patterns for 96.8% of respondents. The study concludes that financial inclusion plays a critical role in economic development, though gaps in access to diverse financial services persist. It recommends strengthening inclusive financial systems, expanding credit access, and promoting digital financial services to enhance economic growth.

Keywords: Financial Inclusion; Financial Technology; SMEs; Entrepreneurship; GDP (search for similar items in EconPapers)
JEL-codes: G21 O16 O55 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-61

DOI: 10.59413/ajocs/v7.i2.43

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