Financial Inclusion in Africa : An Overview

This paper summarizes financial inclusion across Africa. First, it provides a brief overview of the African financial sector landscape. Second, it uses the Global Financial Inclusion Indicators (Global Findex) database to characterize adults in Africa that use formal and informal financial services and identify the barriers to formal account ownership. Next, it uses World Bank Enterprise Survey data to examine how the use of financial services by small and medium enterprises in Africa compares with small and medium enterprises in other developing regions in terms of account ownership and availability of lines of credit. The authors find that less than a quarter of adults in Africa have an account with a formal financial institution and that many adults in Africa use informal methods to save and borrow. Similarly, the majority of small and medium enterprises in Africa are unbanked and access to finance is a major obstacle. Compared with other developing economies, high-growth small and medium enterprises in Africa are less likely to use formal financing, which suggests formal financial systems are not serving the needs of enterprises with growth opportunities.

Bibliographic Details

Main Authors:	Demirgüç-Kunt, Asli, Klapper, Leora
Language:	English en_US
Published:	World Bank, Washington, DC 2012-06
Subjects:	ACCESS POINTS, ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCOUNT HOLDERS, ACCOUNT OWNERSHIP, ASSET ACCUMULATION, AUTOMATED TELLER MACHINES, BANK ACCOUNT, BANK BRANCH, BANK BRANCHES, BANK FINANCING, BANK POLICY, BANKS, BARRIER, BORROWING, BROAD ACCESS, CAPITALIZATION, CHECKING ACCOUNT, COMMERCIAL BANK, COMMERCIAL BANK BRANCHES, CREDIT ASSOCIATIONS, CREDIT CARD, DEBIT CARD, DEMOGRAPHIC, DEPOSIT, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DOCUMENTATION REQUIREMENTS, DOMESTIC CREDIT, EARNINGS, ECONOMIC GROWTH, EMPLOYMENT, EMPLOYMENT GROWTH, ENTERPRISE SURVEY, ENTERPRISE SURVEYS, ENTREPRENEURS, ENTREPRENEURSHIP, ENTRY BARRIERS, EQUITY FINANCING, EQUITY MARKETS, EXTERNAL FINANCE, EXTERNAL FUNDING, FINANCES, FINANCIAL ACCESS, FINANCIAL DEPTH, FINANCIAL PRODUCTS, FINANCIAL SECTOR REFORMS, FINANCIAL SERVICES, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL TRANSACTIONS, FINANCING OBSTACLES, FINANCING SOURCES, FIRM GROWTH, FORMAL FINANCIAL INSTITUTION, FORMAL FINANCIAL SECTOR, FORMAL SAVINGS, GENDER, GENDER GAP, GROWTH OPPORTUNITIES, GROWTH RATES, HOUSEHOLDS, INCOME, INCOME INEQUALITY, INEQUALITY, INFORMAL LENDER, INFORMAL SAVINGS, INNOVATIONS, INTERNAL FUNDS, INTERNATIONAL BANK, INTERNATIONAL COMPARISON, INVESTMENT FINANCING, LEGAL CONSTRAINTS, LIMITED ACCESS, LINE OF CREDIT, LINES OF CREDIT, LIVESTOCK INSURANCE, LOAN, LOC, MARKET CAPITALIZATION, MEDIUM ENTERPRISES, MOBILE PHONE, MOBILE PHONES, NEW PRODUCTS, NEW TECHNOLOGIES, OPEN ACCESS, OUTSTANDING LOAN, OUTSTANDING LOANS, PRIVATE CREDIT, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, REGULATORY ENVIRONMENT, RELIABILITY, REMITTANCES, RISK MANAGEMENT, RURAL CLIENTS, SAVINGS, SAVINGS BEHAVIOR, SECURITY RISKS, SELF-FINANCING, SHARE OF EQUITY, SMALL ENTERPRISES, SOURCE OF CREDIT, STOCK EXCHANGES, STOCK MARKETS, STOCKS, TELECOMMUNICATIONS, TRADITIONAL BANKING, USERS, USES, WEB, WITHDRAWAL, WORLD DEVELOPMENT INDICATORS, Microdata Set,
Online Access:	http://documents.worldbank.org/curated/en/2012/06/16375298/financial-inclusion-africa-overview https://hdl.handle.net/10986/9335
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