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Exploring Digital Financial Inclusion Strategies for Urban and Rural Communities in Botswana, Namibia, South Africa and Zimbabwe

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Financial Inclusion and Digital Transformation Regulatory Practices in Selected SADC Countries

Part of the book series: Ius Gentium: Comparative Perspectives on Law and Justice ((IUSGENT,volume 106))

Abstract

This chapter explores digital financial inclusion strategies for rural and urban communities in Botswana, Namibia, South Africa, and Zimbabwe. Financial inclusion has taken centre stage in academic discourses due to its criticality in enhancing socio-economic development. Digital financial services refer to services that are made available through mobile phones and the internet. The World Bank indicates that in developing countries, more households own mobile phones as compared to those who access water and electricity which highlights high mobile penetration rates in developing countries. Digital financial services are key in enhancing financial inclusion, by including the previously marginalised people into the formal financial system. Statistics reveal that more than 60 percent of the global population now has access to digital financial services hence regulators and policymakers must focus on this burgeoning issue. Huge disparities are evident in the levels of digital financial inclusion between the rural and urban communities for the countries under study, largely because of the marginalisation of rural communities and their depressed spending patterns. Proposed digital financial strategies should, therefore, address this anomaly and include the rural communities into the manifold of digital services to ameliorate the vagaries of poverty rampant in rural communities.

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Notes

  1. 1.

    World Bank (2018).

  2. 2.

    Demirgüç-Kunt et al. (2020), p. 4.

  3. 3.

    Ozili (2020), pp. 1–23.

  4. 4.

    Shen et al. (2021), p. 219.

  5. 5.

    Chu (2018), p. 131.

  6. 6.

    Klapper (2017).

  7. 7.

    Chu (2018), p. 132.

  8. 8.

    Ayadi and Shaban (2020), p. 1. See also Financial Inclusion Global Initiative (FIGI) (2019).

  9. 9.

    World Bank (2019).

  10. 10.

    Chu (2018), pp. 131–144.

  11. 11.

    World Bank (2016).

  12. 12.

    Demirgüç-Kunt et al. (2018), p. xii.

  13. 13.

    Khera et al. (2021), p. 12.

  14. 14.

    Khera et al. (2021), p. 12.

  15. 15.

    Manyika et al. (2016), p. 3.

  16. 16.

    Manyika et al. (2016), p. 3.

  17. 17.

    Ozili (2018), p. 330; Saal (2017), p. 2; Klapper (2017), p. 2; Chu (2018), p. 142 and Demirgüç-Kunt et al. (2018), p. 1.

  18. 18.

    Klapper (2017), p. 6. See also Chetty et al. (2019), pp. 2–3; and Banna (2020), p. 133.

  19. 19.

    Bill and Melinda Gates Foundation (2019), p. 9.

  20. 20.

    Bill and Melinda Gates Foundation (2019), p. 8.

  21. 21.

    Ayadi and Shaban (2020), p. 4.

  22. 22.

    Shipalana (2019), p. 15.

  23. 23.

    Finmark Trust (2019), p. 3.

  24. 24.

    SADC (2016), p. 29.

  25. 25.

    SADC (2016), p. 31.

  26. 26.

    Chetty (2019), p. 2.

  27. 27.

    Shipalana (2019), South African Institute of International Affairs 13.

  28. 28.

    Chitimira and Ncube (2020), p. 339. See also Allen et al. (2016), pp. 18–27.

  29. 29.

    Abrahams (2017), p. 648.

  30. 30.

    Bara (2013), p. 351.

  31. 31.

    Financial Sector Conduct Authority (2019).

  32. 32.

    Making Access Possible (2015), p. xv.

  33. 33.

    Botswana Stock Exchange Limited News (2019), p. 10.

  34. 34.

    Molefhi (2019), p. 9.

  35. 35.

    Botswana Stock Exchange Limited News (2019), p. 10.

  36. 36.

    Finmark Trust (2019), p. 35.

  37. 37.

    Finmark Trust (2019), p. 35.

  38. 38.

    Haiyambo (2016), p. 75.

  39. 39.

    Mukong et al. (2020), p. 155.

  40. 40.

    Stijns et al. (2017), p. 7.

  41. 41.

    Reserve Bank of Zimbabwe (2016), p. 3.

  42. 42.

    Machasio (2020), p. 1.

  43. 43.

    Finmark Trust (2019), 30.

  44. 44.

    Masiyandima et al. (2017), p. 8.

  45. 45.

    Reserve Bank of Zimbabwe (2016), p. 10.

  46. 46.

    Saal et al. (2017), p. 7; UN Population Division (2019); and Machasio (2020), p. 4.

  47. 47.

    Saal et al. (2017), p. 7; UN Population Division (2019); and Machasio (2020), p. 4.

  48. 48.

    Ayadi and Shaban (2020), p. 16.

  49. 49.

    Chetty et al. (2019), p.10.

  50. 50.

    Bill and Melinda Gates Foundation (2019), p. 14.

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Authors and Affiliations

  1. Department of Graduate Studies, Botho University, Gaborone, Botswana

    Tendai D. Svotwa

  2. Namibia Business School, University of Namibia, Windhoek, Namibia

    Charles Makanyeza

  3. School of Accounting, Faculty of Commerce, Management and Law, University of Namibia, Windhoek, Namibia

    Eukeria Wealth

Authors
  1. Tendai D. Svotwa
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  2. Charles Makanyeza
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  3. Eukeria Wealth
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Correspondence to Charles Makanyeza .

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Editors and Affiliations

  1. Faculty of Law, North-West University, Mmabatho, South Africa

    Howard Chitimira

  2. School of Law, University of Namibia, Windhoek, Namibia

    Tapiwa Victor Warikandwa

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Svotwa, T.D., Makanyeza, C., Wealth, E. (2023). Exploring Digital Financial Inclusion Strategies for Urban and Rural Communities in Botswana, Namibia, South Africa and Zimbabwe. In: Chitimira, H., Warikandwa, T.V. (eds) Financial Inclusion and Digital Transformation Regulatory Practices in Selected SADC Countries. Ius Gentium: Comparative Perspectives on Law and Justice, vol 106. Springer, Cham. https://doi.org/10.1007/978-3-031-23863-5_8

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  • DOI: https://doi.org/10.1007/978-3-031-23863-5_8

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