A Comparative Analysis of Financial Inclusion in Select Countries of Southern African Development Community (SADC)

Abstract

The study assesses and compares the level of financial inclusion in the Southern African Development Community (SADC) bloc countries. It undertakes a comparison of financial inclusion indicators for selected low-income, lower-middle-income, and upper-middle-income countries within the SADC bloc and their position vis-à-vis the global context. This study analyzes the significant disparities in financial inclusion across the income classifications of SADC countries, revealing that low-income countries face substantial challenges in engaging with traditional banking services compared to upper-middle-income countries. Key findings indicate that, while the low-income population demonstrates high usage of mobile money services, they exhibit lower account ownership, debit or credit card use, and engagement in financial activities such as withdrawals, deposits, borrowing, and saving. The study emphasizes the urgent need for targeted interventions, including enhancing financial infrastructure, promoting digital financial services, and implementing financial literacy programs tailored to underserved communities. Additionally, it highlights the need to promote mobile money services and to monitor and evaluate progress. These actions aim to create an inclusive financial system that addresses disparities and improves economic growth in low- and middle-income countries, ultimately contributing to a more equitable global financial inclusion landscape.