Abstract
This chapter explores digital financial inclusion strategies for rural and urban communities in Botswana, Namibia, South Africa, and Zimbabwe. Financial inclusion has taken centre stage in academic discourses due to its criticality in enhancing socio-economic development. Digital financial services refer to services that are made available through mobile phones and the internet. The World Bank indicates that in developing countries, more households own mobile phones as compared to those who access water and electricity which highlights high mobile penetration rates in developing countries. Digital financial services are key in enhancing financial inclusion, by including the previously marginalised people into the formal financial system. Statistics reveal that more than 60 percent of the global population now has access to digital financial services hence regulators and policymakers must focus on this burgeoning issue. Huge disparities are evident in the levels of digital financial inclusion between the rural and urban communities for the countries under study, largely because of the marginalisation of rural communities and their depressed spending patterns. Proposed digital financial strategies should, therefore, address this anomaly and include the rural communities into the manifold of digital services to ameliorate the vagaries of poverty rampant in rural communities.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
World Bank (2018).
- 2.
Demirgüç-Kunt et al. (2020), p. 4.
- 3.
Ozili (2020), pp. 1–23.
- 4.
Shen et al. (2021), p. 219.
- 5.
Chu (2018), p. 131.
- 6.
Klapper (2017).
- 7.
Chu (2018), p. 132.
- 8.
- 9.
World Bank (2019).
- 10.
Chu (2018), pp. 131–144.
- 11.
World Bank (2016).
- 12.
Demirgüç-Kunt et al. (2018), p. xii.
- 13.
Khera et al. (2021), p. 12.
- 14.
Khera et al. (2021), p. 12.
- 15.
Manyika et al. (2016), p. 3.
- 16.
Manyika et al. (2016), p. 3.
- 17.
- 18.
- 19.
Bill and Melinda Gates Foundation (2019), p. 9.
- 20.
Bill and Melinda Gates Foundation (2019), p. 8.
- 21.
Ayadi and Shaban (2020), p. 4.
- 22.
Shipalana (2019), p. 15.
- 23.
Finmark Trust (2019), p. 3.
- 24.
SADC (2016), p. 29.
- 25.
SADC (2016), p. 31.
- 26.
Chetty (2019), p. 2.
- 27.
Shipalana (2019), South African Institute of International Affairs 13.
- 28.
- 29.
Abrahams (2017), p. 648.
- 30.
Bara (2013), p. 351.
- 31.
Financial Sector Conduct Authority (2019).
- 32.
Making Access Possible (2015), p. xv.
- 33.
Botswana Stock Exchange Limited News (2019), p. 10.
- 34.
Molefhi (2019), p. 9.
- 35.
Botswana Stock Exchange Limited News (2019), p. 10.
- 36.
Finmark Trust (2019), p. 35.
- 37.
Finmark Trust (2019), p. 35.
- 38.
Haiyambo (2016), p. 75.
- 39.
Mukong et al. (2020), p. 155.
- 40.
Stijns et al. (2017), p. 7.
- 41.
Reserve Bank of Zimbabwe (2016), p. 3.
- 42.
Machasio (2020), p. 1.
- 43.
Finmark Trust (2019), 30.
- 44.
Masiyandima et al. (2017), p. 8.
- 45.
Reserve Bank of Zimbabwe (2016), p. 10.
- 46.
- 47.
- 48.
Ayadi and Shaban (2020), p. 16.
- 49.
Chetty et al. (2019), p.10.
- 50.
Bill and Melinda Gates Foundation (2019), p. 14.
Bibliography
Abrahams R (2017) Financial inclusion in South Africa: a review of the literature. South Afr Account Assoc 632–661
Allen F, Klapper L, Demirgüç-Kunt A, Peria MSM (2016) The foundations of financial inclusion: understanding ownership and use of formal accounts. J Financ Intermed 27(1):18–27
Ayadi R, Shaban M (2020) Digital financial inclusion: a pillar of resilience amidst Covid-19. Euro-Mediterranean Econ Assoc 1–16
Banna H, Hassan MK, Alam MR (2020) Digital financial inclusion, Islamic banking stability and sustainable economic growth. Islamic Persp Sustain Financ Syst 131–152.
Bara A (2013) Mobile money for financial inclusion: policy and regulatory perspective in Zimbabwe. Afr J Sci Technol Innovat Dev 5(5):345–354
Bill and Melinda Gates Foundation (2019) A G7 partnership for Women’s digital financial inclusion in Africa. Bill and Melinda Gates Foundation, pp 1–24
Botswana Stock Exchange Limited News (2019) Advancing Financial Inclusion. Botswana Stock Exchange Limited News, pp 1–58
Chetty K, Josie J, Siswana B, Mashotola E, Kariuki K, Johnson C, Luo M (2019) Review of fintech strategies for financial inclusion in Sub-Saharan Africa. International Financial Architecture for Stability and Development/Crypto–Assets and Fintech 1–14
Chitimira H, Ncube M (2020) Legislative and other selected challenges affecting financial inclusion for the poor and low-income earners in South Africa. J Afr Law 64(3):337–355
Chu AB (2018) Mobile technology and financial inclusion. In: Handbook of Blockchain, digital finance, and inclusion. Academic Press, pp 131–144
Demirgüç-Kunt A, Klapper L, Singer D, Ansar S, Hess J (2018) The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution. World Bank 1–151
Demirgüç-Kunt A, Klapper L, Singer D, Ansar S, Hess J (2020) The Global Findex Database 2017: measuring financial inclusion and opportunities to expand access to and use of financial services. World Bank Econ Rev S2–S8
Financial Inclusion Global Initiative (2019) Financial Inclusion. Available at <https://www.worldbank.org/en/topic/financialinclusion/brief/figi> Accessed 8 July 2021
Financial Sector Conduct Authority (2019) Financial Inclusion Strategy. Available at <www.fsca.co.za> Accessed 10 April 2021
Finmark Trust (2019) Measuring Progress 2019: Financial Inclusion in SADC. Available at <https://finmark.org.za/system/documents/files/000/000/183/original/ME_Report_2019.pdf?1601964365> Accessed 18 July 2021
Haiyambo E (2016) An Impact Assessment of the Regulation of Microfinance Institutions in Namibia. Doctoral Thesis, Stellenbosch University
Khera P, Ng S, Ogawa S, Sahay R (2021) Measuring digital financial inclusion in emerging market and developing economies: a new index. IMF Working Paper No. 21 1–33
Klapper L (2017) How Digital Payments Can Benefit Entrepreneurs. IZA World of Labour available at <https://wol.iza.org/articles/how-digital-payments-can-benefit-entrepreneurs/long> Accessed 14 July 2021
Machasio IN (2020) COVID-19 and Digital Financial Inclusion in Africa. World Bank, pp 1–7
Making Access Possible (2015) Botswana - Demand, Supply, Policy and Regulation. Diagnostic Final Report 1–247
Manyika J, Lund S, Singer M, White O, Berry C (2016) Digital finance for all: powering inclusive growth in emerging economies. McKinsey Global Institute, pp 1–24
Molefhi K (2019) Financial inclusion and its impact on employment creation in Botswana. Botswana Institute for Development Policy Analysis pp 1–28
Mukong A, Shiwayu N, Kaulihowa T (2020) A decomposition of the gender gap in financial inclusion: evidence from Namibia. Afr J Bus Econ Res 15(4):149–164
Ozili PK (2020) Financial inclusion research around the world: a review. Forum Soc Econ 1–23
Reserve Bank of Zimbabwe (2016) National Financial Inclusion Strategy 2016–2020. Reserve Bank of Zimbabwe 1–62
Saal M, Starnes S & Rehermann T (2017) Digital Financial Services. IFC Available at <https://openknowledge.worldbank.org/bitstream/handle/10986/30368/118736-BRI-EMCompass-Note-42-DFS-Challenges-and-Opportunities-PUBLIC.pdf?sequence=1> Accessed 16 July 2021
Shen Y, Hu W, Hueng CJ (2021) Digital financial inclusion and economic growth: a cross-country Study. Proc Comput Sci 218–223
Stijns JP, Borysko S, Marchitto B (2017) Banking in Sub-Saharan Africa: interim report on digital financial inclusion. Regional Studies and Roundtables European Investment Bank, pp 1–25
UN Population Division (2019) World Population Prospects 2019. Available at <https://esa.un.org/unpd/wpp/Publications/Files/WPP2017_KeyFindings.pdf>. Accessed 16 July 2020
World Bank (2016) World Development Report 2016: Digital Dividends. World Bank. Available at <http://www.worldbank.org/en/publication/wdr2016> Accessed 10 July 2021
World Bank (2018) Financial Inclusion is a Key Enabler to Reducing Poverty and Boosting Prosperity. Available at <https://www.worldbank.org/en/topic/financialinclusion/overview>. Accessed 8 July 2021
World Bank (2019) Financial Inclusion Global Initiative. Available at <https://www.worldbank.org/en/topic/financialinclusion/brief/figi>. Accessed 8 July 2021
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Svotwa, T.D., Makanyeza, C., Wealth, E. (2023). Exploring Digital Financial Inclusion Strategies for Urban and Rural Communities in Botswana, Namibia, South Africa and Zimbabwe. In: Chitimira, H., Warikandwa, T.V. (eds) Financial Inclusion and Digital Transformation Regulatory Practices in Selected SADC Countries. Ius Gentium: Comparative Perspectives on Law and Justice, vol 106. Springer, Cham. https://doi.org/10.1007/978-3-031-23863-5_8
Download citation
DOI: https://doi.org/10.1007/978-3-031-23863-5_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-23862-8
Online ISBN: 978-3-031-23863-5
eBook Packages: Law and CriminologyLaw and Criminology (R0)