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Empirical Investigation into Demand-Side Determinants of Financial Inclusion in Tanzania

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  • Ndanshau, Michal O.A.
  • Njau, Frank E.

Abstract

The overall objective of this study is to examine empirically the demand side determinants of financial inclusion in Tanzania. Using the Tanzania FinScope survey of 2017 that comprised of a sample of 9,459 adults (individuals of 16 years and above), the study employed a probit model to analyse the determinants of financial inclusion in Tanzania. The findings revealed that being a male, middle aged, living in the urban, being formally employed, having more income and more educated to a certain extent foster financial inclusion in Tanzania with a higher influence of formal employment, income and education. Moreover, descriptive analysis established lack of sufficient money and unawareness of the financial services were the most common barriers to financial inclusion in Tanzania. The findings of the study points to direction and factors for improving financial inclusion in Tanzania.

Suggested Citation

  • Ndanshau, Michal O.A. & Njau, Frank E., 2021. "Empirical Investigation into Demand-Side Determinants of Financial Inclusion in Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.
    • Handle: RePEc:ags:afjecr:308771
    DOI: 10.22004/ag.econ.308771
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    References listed on IDEAS

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    Cited by:

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    2. David Mhlanga, 2021. "Financial Inclusion in Emerging Economies: The Application of Machine Learning and Artificial Intelligence in Credit Risk Assessment," IJFS, MDPI, vol. 9(3), pages 1-16, July.
    3. Kalandi Charan Pradhan & Ritik Sharma, 2022. "Assessing the spatiotemporal financial inclusion and its determinants: a sub-national analysis of India," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 635-681, June.
    4. Maureen Were & Maureen Odongo & Caroline Israel, 2021. "Gender disparities in financial inclusion in Tanzania," WIDER Working Paper Series wp-2021-97, World Institute for Development Economic Research (UNU-WIDER).
    5. Abdul Jalloh*, Mamoud, 2023. "Determinants Of Financial Inclusion In Sierra Leone: Evidence From Findex Surveys," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 10(1), pages 32-45, June.
    6. NGONYANI, Danstun, 2022. "Financial Inclusion In Developing Countries. A Review Of The Literature On The Costs And Implications," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 26(1), pages 54-77, March.

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