The impact of financial inclusion on employment in West Africa

Restricting financial services to a tiny percentage of individuals in sub-Saharan Africa hinders employment creation and economic growth. Encouraging financial inclusion is essential for economic growth because it enables marginalized people to create jobs via entrepreneurship. Ensuring affordable access to a variety of financial products and services helps mitigate the negative consequences of financial exclusion, which occurs when people struggle to find suitable financial solutions. Using panel data for the 13 West African nations between 2009 and 2021 and 10 variables, the empirical study focuses on the relationship between financial inclusion and employment in West Africa and the role of economic growth in it. It used econometric methodology to analyse the interactions between our variables. This methodology starts with analysing the existence of unit roots in our variables, then exploring the cointegration relationship between these variables, and, finally, estimating the model parameters using the fully modified ordinary least squares (FMOLS) method. The study found that financial inclusion has a positive and statistically significant impact on employment and financial inclusion has a positive and statistically significant impact on economic growth. In one-word, financial inclusion is a tactic used to boost employment and economic expansionin sub-Saharan Africa. The study suggests that commercial banks should increase ATM numbers per 1000 km2 and grant some economic benefits if used. Financial education should be integrated into national education policies to promote financial inclusion. Public actors should improve the business climate and establish the rule of law to encourage foreign direct investment (BoP, current USD) while increasing the use of mobile money for populations in rural areas to promote financial inclusion.