The Transformative Impact of Digital Financial Inclusion Among Marginalized Groups on Economic Growth

The study empirically analyzes the effect of digital financial inclusion on economic growth in Africa. The digital financial inclusion variables are ownership of digital financial devices/mobile money accounts and usage of digital financial services for female, poor, less educated, and unemployed individuals in the region. Panel data is collected from 39 African countries over three years (2014, 2017, and 2022). The Fixed Effect (Fe) Model and system Generalized Method of Moments (GMM) estimation techniques are performed. The results show a significant and positive impact of using digital financial services on the economic growth of all marginalized groups in Africa. This promising finding underscores the potential of digital financial inclusion to drive economic growth and development. Therefore, the study recommends that the government and other stakeholders formulate specific policies to ensure that marginalized groups are empowered in the digital financial world and contribute to the overall development of the countries on the continent.