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Financial inclusion as a critical cog for development (Part 2)

Sharing knowledge: Mambure
Sharing knowledge: Mambure

In the first part of this four-part series, we covered the basics of financial inclusion. Definitions and components of the subject matter were clearly articulated. It was noted that the key components of financial inclusion are access, usage, and quality. We also argued that affordability of financial solutions is part of the access component hence it could not be treated separately. The article was concluded by providing four lenses through which financial inclusion could be looked at notably as concept, policy, practice, and strategy. In this article we will delve into the key drivers of financial inclusion.

It is generally acceptable by authorities and scholars that financial literacy, financial innovation, consumer protection and the architecture of the financial system are the among the key levers that drive financial inclusion. These four drivers are briefly discussed in this instalment.

It is important that we understand the meaning of the term financial literacy. The Organisation for Economic Co-operation and Development (OECD) defines financial literacy as “a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing”. It is clear that financial literacy goes beyond understanding the financial terms but rather deals with attitudes and how to behave in a financially responsible manner as well.

Editor's Comment
Don't let FMD outbreak drag on

Acting Agriculture Minister, Edwin Dikoloti, is right in saying opening an export-ready facility whilst Foot and Mouth Disease (FMD) is still spreading would risk getting the whole country blacklisted before a single carcass leaves the door.A ban like that would break the already stressed nation. So, the postponement, painful as it is, is the right thing to do. The local economy is being squeezed from both ends. FMD has already slammed the door...

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