Name of the Asset | Reducing Gender and Locational Gaps in Financial Inclusion: The Role of Digital Literacy in SSA
Type of Asset | Research
Date | January 2026
DOI | 10.69814/wp/2025104
SUMMARY
Over the last two decades, Sub-Saharan Africa has witnessed significant growth in the usage of digital financial services. However, women and rural dwellers report lower usage rate than men and urban dwellers which has negative implications in the regions ability to achieve SDG 5 and 10. While existing studies highlight inequalities in digital literacy as a key driver of these disparities, rigorous empirical assessments remain limited. This study addresses this gap by analysing cross-sectional data from Kenya, Tanzania, Nigeria, and Uganda to estimate gender and locational inequalities in digital literacy, identify their drivers, and assess their impact on digital financial inclusion. Using regression decomposition techniques, the study finds that digital literacy accounts for up to 33% of the gender gap and 38% of the locational gap in mobile money usage, and even higher shares in debit card and online banking use. The analysis also reveals that inequalities in digital literacy are primarily driven by disparities in smartphone ownership, educational attainment, financial literacy, and decision-making autonomy. These results underscore the urgent need for targeted policies that enhance digital skills among women and rural populations as a pathway to inclusive financial development in the region.
AUTHOR | Michael Coffie
COUNTRY AND/OR REGION | Sub-Saharan Africa
PROGRAMME | Global Development Conference 2025: Call for Papers
