Enhancing financial inclusion and entrepreneurship drive in Africa : do digital technologies matter?

Abstract

The study investigates the use of digital technologies in promoting entrepreneurship and financial inclusion (FI) in Sub-Saharan Africa (SSA). Employing an exploratory and quantitative design, the research utilises a longitudinal dataset spanning 2016–2023, aligning with the UN SDGs implementation. Secondary data from 30 SSA nations were analysed, based on specific inclusion criteria and data availability, to examine the interplay between FI, digital technologies (DT), and entrepreneurship. A Pooled OLS regression model was used to assess the impact of digital technologies on FI and entrepreneurial drive in Africa. Recognising potential limitations of the pooled OLS model, including omitted variable bias and specification error, the GMM was applied as a robust check. Modern financial services like mobile banking, fintech solutions, and digital platforms significantly enhance FI and entrepreneurship success in underdeveloped regions. The study stressed the need for diverse financial products, regulations, and policies tailored to varying socio-economic backgrounds. The research contributes to existing literature by exploring how customer-centric innovations and stakeholder collaboration can sustainably promote FI, entrepreneurship, the achievement of SDGs, and economic growth in Africa.