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Determinants of Financial Capability: A Situational Analysis for Namibia

Author

Listed:
  • Asa Romeo Asa

    (Faculty of Management Sciences, Namibia University of Science and Technology. Windhoek, Namibia)

  • Johanna Pangeiko Nautwima

    (Namibia Business School, University of Namibia Windhoek, Namibia)

Abstract

It is imperative that if the poor in society benefit from the massive developments in the financial sector, then such a sector must be genuinely inclusive. It should meet the needs of all citizens with the potential to use such financial services productively. This paper scopes financial inclusivity as a process ensuring ease of access, availability, and usage of financial services by all members of society. To reduce socio-economic inequality, the poor in developing countries, like everyone else, need access to a wide range of financial services that are convenient, flexible, and reasonably priced. Therefore, financial inclusivity is sought to be significant towards the global development agenda as a tool for increasing the poor’s access to financial services, often cited as a mechanism that can help reduce poverty and lower income inequality. For many years, microfinance has been heralded as a mechanism for enhancing financial inclusion. It provides an avenue through which the marginalized and the poor can access and benefit from the formal financial system. Moreover, financial inclusivity is substantially evident in the rural areas among the poor, who have no collateral or credit history for participating in the legal financial system. As a result, financial inclusion is receiving increased attention as an essential tool for reducing aspects of socio-economic inequality characterized by the isolation of individuals and communities from formal financial services, like affordable and accessible credit.

Suggested Citation

  • Asa Romeo Asa & Johanna Pangeiko Nautwima, 2021. "Determinants of Financial Capability: A Situational Analysis for Namibia," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(6), pages 7-13, February.
    • Handle: RePEc:mgs:ijoied:v:7:y:2021:i:6:p:7-13
    DOI: 10.18775/ijied.1849-7551-7020.2015.76.2001
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    References listed on IDEAS

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    3. Adele Atkinson & Stephen McKay & Sharon Collard & Elaine Kempson, 2007. "Levels of Financial Capability in the UK," Public Money & Management, Taylor & Francis Journals, vol. 27(1), pages 29-36, February.
    4. Dana Kubicková & Vladimir Nulicek & Irena Jindrichovska, 2019. "Is The Financial Literacy Affected by The Field of Study? (A Comparison of Specialised Secondary Schools)," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 5(6), pages 15-20, September.
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    More about this item

    Keywords

    Financial Inclusivity; Financial Capability; Financial Knowledge; Inequality;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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