Abstract
Financial inclusion in Africa faces significant challenges, including inadequate infrastructure, regulatory obstacles, and socioeconomic barriers, which limit access to financial services for underserved populations. In response to these challenges, this study examines how financial inclusion influences economic growth and poverty reduction across three Sub-Saharan Africa regions, namely East, West, and Southern Africa, spanning 28 countries from 2016 to 2023. Financial inclusion is measured through the availability of Automated Teller Machines and digital financial services, using a system Generalised Method of Moments and Quantile regression approach. The findings emphasise the pivotal role of digital financial services in expanding access to financial resources, particularly in East and Southern Africa, while highlighting ongoing disparities in West Africa. The quantile regression analysis reveals that inflation adversely affects GDP growth across all quantiles, whereas foreign direct investment consistently supports economic growth. Furthermore, the findings showed that digital financial services are more effective than automated teller machines in promoting financial inclusion, and infrastructure and digital literacy improvements are recommended to accelerate progress. In conclusion, enhancing digital financial services in Sub-Saharan Africa has the potential to significantly improve financial inclusion, drive economic growth, and reduce poverty levels. The study suggests that Sub-Saharan African countries should prioritise digital financial services, invest in infrastructure, promote financial literacy, and implement inclusive policies to ensure broader access to financial resources. This is because promoting digital financial services can offer Sub-Saharan African countries a path toward economic empowerment and alignment with Sustainable Development Goals, helping to bridge the financial inclusion gap.