The Trend of Financial Inclusion: A Comparative Analysis of Selected African Countries

Financial inclusion (FI) is a widely recognized strategy to improve the quality of life of the poor by allowing everyone to participate in the formal financial system, make daily transactions, prepare for emergencies, and invest in opportunities. Governments worldwide are working towards this goal to pursue sustainable development. Despite these efforts, most African countries still face high poverty levels. To address this issue, this research compared the financial inclusion achievements of selected African countries using data from the Global Findex Database over four years. The goal was to identify the position of each country and compare them to identify areas for improvement and stability. Results showed that Cameroon, Egypt, and Nigeria had the lowest account penetration and borrowing growth rates, while savings in social clubs and borrowing from family and friends were prevalent across all countries. The paper recommends that financial institutions simplify documentation and offer attractive interest rates to improve access to and usage of financial services and products. Moreover, stakeholders should increase awareness to enhance the penetration of formal financial services.