The Political Economy of Financial Inclusion for Smallholder Farmers in Sub-Saharan Africa

The availability of financial capital amongst smallholder farmers immensely helps them to achieve sustainable livelihoods in sub-Saharan Africa (SSA). Conversely, smallholder farmers in SSA are pestered by income inequality since the postcolonial era. This is one of the leading factors for exclusive economic growth in the region. Although extant studies stress the key role played by financial inclusion, and digitization, in general, and amongst smallholder farmers, there is a dearth of literature when it comes to accounting for the role played by the postcolonial governments in the region. Using document analysis, this study examines grey and academic literature to analyse financial inclusion policies promulgated by governments. The study found that most governments in SSA have outdated financial regulatory frameworks that guide financial inclusion. In addition, countries with road and railway infrastructure had a high level of financial inclusion and the soft infrastructure, such as the regulatory framework is not updated to support financial technology lenders. In the era of mobile money accounts, the regulatory frameworks in SSA are not responsive to matters of secure identity that protect the client and the financial provider. Other barriers to financial inclusion include a lack of mobile phones, identity documents, and money. In light of the findings above, it is critical to know that the postcolonial government in the SSA has at its helm the potential ability to leverage the upsurge of mobile money for the economic benefit of smallholder farmers.