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The Role of Digital Financial Literacy in Enhancing Financial Inclusion Among Informal Entrepreneurs in Zambia

Author

Listed:
  • Kampamba Chibesa

    (Institute of Distance Education, The University of Zambia, Lusaka, Zambia)

  • Austin Mwange

    (Graduate School of Business, The University of Zambia, Lusaka, Zambia)

Abstract

Digital financial literacy is widely recognized as a critical driver of financial inclusion, particularly among informal entrepreneurs who rely heavily on mobile and digital financial services. Despite the growing adoption of digital payment systems, many informal business operators in Zambia face challenges in effectively using digital financial tools. This study investigates the effect of digital financial literacy on financial inclusion among informal entrepreneurs in Lusaka, Zambia. Using a mixed-methods approach, data were collected from 350 informal traders operating in selected markets. The findings reveal that digital financial literacy significantly enhances financial inclusion, with digital knowledge, mobile banking utilization, and confidence in digital platforms emerging as key determinants. The study recommends targeted financial literacy programs, improved digital infrastructure, and supportive regulatory frameworks to advance inclusive digital finance.

Suggested Citation

  • Kampamba Chibesa & Austin Mwange, 2025. "The Role of Digital Financial Literacy in Enhancing Financial Inclusion Among Informal Entrepreneurs in Zambia," East African Finance Journal, East African Finance Journal, vol. 4(1).
    • Handle: RePEc:cwk:eafjke:2025-08
    DOI: 10.59413/eafj/v4.i1.8
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    References listed on IDEAS

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    1. Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2005. "SMEs, Growth, and Poverty: Cross-Country Evidence," Journal of Economic Growth, Springer, vol. 10(3), pages 199-229, September.
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    Cited by:

    1. Yvonne Mumba & Austin Mwange, 2025. "Assessing the Role of Financial Inclusion in Enhancing Micro, Small, and Medium Enterprise (MSMEs) Resilience Post-COVID-19 in Zambia: A Case of Olympia Market," East African Finance Journal, East African Finance Journal, vol. 4(1).
    2. Austin Mwange & Moonga Mumba, 2025. "Socioeconomic Determinants of Digital Financial Inclusion among Informal Market Traders in Zambia: Evidence from Lusaka City Market," East African Finance Journal, East African Finance Journal, vol. 4(1).
    3. Dr. Austin Mwange & Moonga Mumba, 2025. "Perceived Trust and Digital Financial Inclusion in Zambia’s Informal Markets: Mediating and Moderating Role of Digital Financial Literacy and Digital Financial Efficacy," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 6(2).
    4. Austin Mwange & Kampamba Clarence Chibesa & Windu Matoka & Lwando Kalaba, 2025. "An Investigation of the Impacts of Artificial Intelligence on Financial Inclusion in Developing Economies: Case of Sub-Saharan Africa," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 6(3).

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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