Financial development, economic freedom, innovative facilities, economic wellbeing and Inclusive finance in Sub-Saharan Africa.

Abstract

This thesis presents three empirical papers that seek to improve inclusive finance and economic wellbeing in Sub-Saharan Africa (SSA). Employing a generalized method of moment for 30 SSA countries: The first paper concerned itself with the role of regulation in the relationship between financial development and inclusive finance. It found a significant positive direct effect of financial development on inclusive finance and a significant positive direct influence of regulation on financial inclusion, but found a significant positive role of regulation in the relationship between financial development and inclusive finance up to a threshold of 6.3354, above which regulation negatively modulates. This suggests that when regulation exceeds that threshold of 6.3354 in SSA, it subsequently hinders the financial sector from rendering enough services that can help improve inclusive finance. Hence, policymakers should always check the mean of their economies' regulations against the threshold of 6.3354 before deciding whether to be more restrictive or not. Also, Paper two sheds light on the collaborative role of innovative facilities and economic freedom in inclusive finance. The study recorded that improving economic freedom promotes financial inclusion while expanding innovative facilities in SSA inhibits it. Again, innovative facilities improve the impact of economic freedom on inclusive finance in SSA but subsequently diminish the effect of economic freedom on inclusive finance after certain thresholds. This implies that in SSA, innovative facilities-induced freedom-inclusive finance is relevant only when it has not covered certain thresholds because undesirable results are revealed after the thresholds. Thus, technical and financial knowledge should be enhanced in addition to lowering the cost of using innovative facilities to access financial services to prevent negative influence after the thresholds. Paper three assessed the complementary role of economic freedom on the influence of inclusive finance on economic wellbeing. The findings revealed that financial inclusion enhances the wellbeing of residents, economic freedom improves the wellbeing of the populace and a free environment maximizes the role of inclusive finance on economic wellbeing in SSA. Hence, less restrictions are recommended to be adopted by policymakers in SSA when it comes to enhancing financial inclusion's influence on economic wellbeing.

Iqoqa.

Le thisisi yethula amaphepha ocwaningo amathathu ahlose ukuphucula impilonhle yezezimali nezomnotho jikelele e-Sub-Saharan Africa (SSA). Kusetshenziswa indlelakwenza ejwayelekile emazweni angama-30 e-SSA: Iphepha lokuqala labhekana nendima yomtheshwana ebudlelwaneni phakathi kwentuthuko yezezimali nezimali ezifaka konke. Yathola umthelela oqondile omuhle wentuthuko yezimali ezifaka konke nomthelela oqondile onesisindo ekufakweni kwezimali, kodwa kutholakale indima enhle enesisindo yokulawula ukufaka izimali, phakathi kwentuthuko yezimali nezimali ezifaka konke kuze kufike emngceleni oyizi-6.3354, kanti ngaphezu kwawo imitheshwana ayisebenzi ngendlela. Lokhu kuphakamisa ukuthi uma imitheshwana yedlula kulowo mngcele wezi-6.3354 kwi-SSA, kube sekuvimba umkhakha wezezimali ukuba ulethe izinsiza ezanele ezingasiza ukuphucula izimali ezifaka konke. Ngakho-ke, abenzi bezinqubomgomo kumele bahlale behlola imini yemitheshwana yezomnotho emngceleni oyi-6.3354 ngaphambi kokunquma ukuthi kumele kube nemigoqo noma cha. Okunye, iphepha lesibili ligqamisa indimakuhlanganyela yezindawo zemizamo nenkululeko yezomnotho ezimalini ezifaka konke. Ucwaningo lwaqopha ukuthi ukuphucula inkululeko yezezimali kuthuthukisa ukufakwa kwezezimali kanti ukwandiswa kwezindlela ezintsha zokwenza e-SSA kuyayithiba. Okunye, izindlela ezintsha ziphucula umthelela wenkululeko yezezimali kwezezimali jikelele kwi-SSA kodwa ngokomphumela kwehlisa umthelela wenkululeko yezezimali jikelele emingceleni ethile. Lokhu kuchaza ukuthi kwi-SSA, izimali ezikhishwe ezikhungweni nezifaka inkululeko kuyangena kuphela uma kungabhekwanga ngemingcele ethile ngoba imiphumela engathandeki ivezwa emuva kwemingcele. Ngakho-ke, ulwazi lwezobuchwepheshe nolwezezimali kumele luphuculwe ngokongeza ukwehlisa izindleko ngokusebenzisa izindlela ezintsha ukuze kufinyeleleke ezinsizeni zezimali ukuvimbela umthelela ongemuhle emuva kwemingcele. Iphepha lesithathu lahlola indima echibiyela inkululeko yezomnotho emtheleleni wezimali ezifaka konke kwimpilonhle yezomnotho. Okutholakele kwaveza ukuthi ukufaka ezezimali kuphucula impilonhle yezakhamuzi kanti indawo ekhululekile iphucula indima yezezimali ezifaka konke kwi-SSA. Ngakho-ke, kuyaphakanyiswa ukuba imigoqo ethathwa abenzi bezinqubomgomo kwi-SSA yehliswe uma kuza ekuphuculeni umthelela wezimali ezifaka konke kwimpilonhle yomnotho.