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Fintech: Innovating Financial Inclusion for African Small and Medium-sized Enterprises

Author

Listed:
  • Selma Haj Khlifa

    (Professor and Doctor of Science, Department of Finance, Groupe ISCAE, Casablanca, Morocco)

  • Nada SRIFI

    (PhD Candidate, Department of Finance, Groupe ISCAE, Casablanca, Morocco)

Abstract

Small and Medium-Sized Enterprises (SMEs) are the lifeblood of Africa’s economy. However, one of their biggest challenges is access to Finance. This study assesses the potential of Financial Technologies (fintech), as an innovative force, in addressing the financial inclusion challenges faced by SMEs across African countries. By adopting an exploratory approach, meticulously reviewing relevant published materials and data from reputable sources such as the World Bank, this study analyzes the correlation between SMEs’ financial inclusion and fintech implementation in Africa. Employing Principal Component Analysis (PCA) and regression modeling in R Studio, this study provides a rigorous analysis of this dynamic. The results indicate that increased usage of fintech significantly improves access to funding and enhances financial inclusion. However, while fintech is bridging the business gap, it cannot operate in isolation. A robust ecosystem, trust-building, and infrastructure are essential to fintech’s success.

Suggested Citation

  • Selma Haj Khlifa & Nada SRIFI, 2025. "Fintech: Innovating Financial Inclusion for African Small and Medium-sized Enterprises," European Journal of Studies in Management and Business, EUROKD, vol. 34, pages 42-63.
    • Handle: RePEc:bco:mbrqaa::v:34:y:2025:p:42-63
    DOI: 10.32038/mbrq.2025.34.03
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    References listed on IDEAS

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