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An exploratory analysis of financial inclusion in Chad

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  • Mahamat Ibrahim Ahmat Tidjani

    (UFHB - Université Félix Houphouët-Boigny)

Abstract

This paper aims to explore the state of financial inclusion in Chad. Adopting a Multiple Correspondence Analysis (MCA) on a sample of 1000 individuals from the Global Findex (2017), the study measured the inclusiveness of financial systems in Chad through a Financial Inclusion Index (FII). Furthermore, it assessed the distribution of the FII using the factor decomposition of the Gini coefficient. The findings showed that the average FII was low, 24.89%, and it varied between 7.43% and 60.35%. Financial institution account, deposit, withdrawal, and debit card ownership were the most influential indicators of financial inclusion in Chad. Moreover, the paper revealed that, despite its low level, financial inclusion was not smoothly distributed among the Chadian population (Gini coefficient of 0.196). The analysis of the financial inclusion inequality profile showed that there was a persistent financial inclusion gender gap in Chad, exacerbated by discriminations in education and income. Thus, policy interventions should target the provision of formal accounts, a reduction of costs of financial services (withdrawal and debit cards), and promoting formal savings by developing adequate savings products, to foster financial inclusion in Chad. Furthermore, these policies should be gender-responsive while considering its interaction with education and income.

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  • Mahamat Ibrahim Ahmat Tidjani, 2020. "An exploratory analysis of financial inclusion in Chad," Post-Print hal-03322905, HAL.
    • Handle: RePEc:hal:journl:hal-03322905
    DOI: 10.5937/ejae17-27027
    Note: View the original document on HAL open archive server: https://hal.science/hal-03322905
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    Keywords

    Financial inclusion index; multiple correspondence analysis; inequality decomposition; Chad;
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