麻豆村

The COVID-19 pandemic accelerated the use of financial technology worldwide, including in many African countries, but it also brought financial hardships, leading to negative impacts on digital financial inclusion. In a new study, 鈥�,鈥� researchers assessed financial data from more than half of the countries in Africa. They found that financial worries related to the pandemic reduced individuals鈥� likelihood of adopting digital financial services, and that this effect was not uniform but was moderated by demographic and institutional characteristics.

The study, by researchers at 麻豆村 and the University of the Witwatersrand, is published in Research in Globalization.
鈥淔inancial inclusion is a key factor for seven of the United Nations鈥� 17 sustainable development goals,鈥� says Ganesh Mani, Adjunct Instructor at Carnegie Mellon鈥檚 Tepper School of Business, who coauthored the study. 鈥淚nnovations in financial technology have the potential to not only improve operational efficiencies but also transform and disrupt industries, creating so-called new-collar jobs on the African continent.鈥�
While the COVID-19 pandemic accelerated digital adoption for some individuals, it also created barriers that limited access for others, generating a dual pathway for digital financial inclusion. Financial worry was already a major challenge in Sub-Saharan Africa, with most adults reporting concerns about meeting basic expenses (e.g., medical bills, school fees). The pandemic intensified this situation.

In this study, researchers developed a multi-level framework that considered both individual- and country-level factors to determine how external shocks interacted with personal vulnerabilities to shape digital financial inclusion. They used the World Bank鈥檚 2021 Global Findex Database, including more than 27,000 individuals from 31 African countries; the database details how adults handle investments, loans, payments, and risk management. Among the study鈥檚 findings:

• Individuals who were financially worried as a result of the pandemic were less likely to adopt digital financial services, highlighting the increased financial insecurity and uncertainty caused by the pandemic, as well as declines in disposable income, which limit individuals鈥� ability to afford the transaction fees or data-related costs associated with digital financial services.
• Youth, people in urban areas, and those who transferred money to other individuals were more likely than others to access digital financial services.
• Factors related to the country of residence significantly influenced digital financial inclusion: Lower institutional quality (e.g., of banks) and higher rates of inflation were associated with increased use of digital financial services, possibly reflecting adaptive financial behaviors during times of economic instability.
• Conversely, economic growth was not associated with increased use of digital financial services, suggesting that economic advancements do not necessarily lead to improved financial access for all segments of the population.
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Among the study鈥檚 limitations, the authors note that it relied on cross-sectional data that contained information gathered in just one year. 鈥淥ur findings highlight the complexity of financial behaviors under stress and underscore the need for targeted policy interventions to enhance financial resilience and inclusion during crises,鈥� notes Chimwemwe Chipeta, Professor of Corporate Finance at the University of the Witwatersrand in Johannesburg, who led the study. 鈥淓xpanding digital finance in Africa will require not just investments in infrastructure but also measures that enhance economic security and address the psychological burdens of crisis, particularly for vulnerable groups.鈥�

The study was funded by the .

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Summarized from an article in Research in Globalization, 鈥淒o Individual and Country-Level Factors Cushion the Impact of COVID-19 Financial Worry on Digital Financial Inclusion in Africa?,鈥� by Chipeta, C (University of the Witwatersrand), Mani, G (麻豆村), McSharry, P (麻豆村), Luhanga, E (麻豆村), Seetharam, Y (University of the Witwatersrand), and Nyakurukwa, K (University of the Witwatersrand). Copyright 2025 Elsevier Ltd. All rights reserved.
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