Empirical evidence on the impact of COVID-19 lockdowns on financial inclusion in Sub-Saharan Africa (SSA) is limited, with most studies focusing on a single indicator. This paper fills that gap by using a composite financial inclusion index and a difference-in-differences design to assess the effects of lockdowns on 87,080 adults across 29 SSA countries, drawing from the World Bank's Global Findex surveys (2014, 2017, and 2021). We find that in countries with lockdowns, the financial inclusion index increased by nearly one percentage point, with a more significant rise in Southern and Eastern Africa than in Central and Western Africa. We also show that the impact of lockdowns varies by dimension and indicator of financial inclusion, underscoring the importance of using a composite index. Additionally, partial lockdowns were found to have a stronger positive impact on financial inclusion compared to full lockdowns. These results are robust across alternative estimation techniques and control variables. Thus, the COVID-19 lockdowns did not reverse the progress made in promoting financial inclusion in SSA.

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Impact of COVID-19 Lockdowns on Financial Inclusion in Sub-saharan Africa

  • Désiré Avom,
  • Yvan Audrey Kamdem

摘要

Empirical evidence on the impact of COVID-19 lockdowns on financial inclusion in Sub-Saharan Africa (SSA) is limited, with most studies focusing on a single indicator. This paper fills that gap by using a composite financial inclusion index and a difference-in-differences design to assess the effects of lockdowns on 87,080 adults across 29 SSA countries, drawing from the World Bank's Global Findex surveys (2014, 2017, and 2021). We find that in countries with lockdowns, the financial inclusion index increased by nearly one percentage point, with a more significant rise in Southern and Eastern Africa than in Central and Western Africa. We also show that the impact of lockdowns varies by dimension and indicator of financial inclusion, underscoring the importance of using a composite index. Additionally, partial lockdowns were found to have a stronger positive impact on financial inclusion compared to full lockdowns. These results are robust across alternative estimation techniques and control variables. Thus, the COVID-19 lockdowns did not reverse the progress made in promoting financial inclusion in SSA.