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This study aimed to unveil the evolving landscape of digital financial inclusion in African countries during the post‐COVID‐19 era. We examined factors influencing the access and usage of digital financial services and identified population segments facing increased exclusion due to the digital divide. First, by applying principal component analysis to data collected at the country level from 39 African countries in 2014, 2017, and 2022, we developed a digital financial inclusion index. Second, the empirical research utilized a microlevel dataset of 29,042 adults from 29 countries, sourced from the World Bank's Global Findex 2021 database, employing the instrumental variable probit methodology. Comparative analysis showed improvements in digital financial inclusion rankings for Kenya, Lesotho, and Botswana, while Egypt, Sudan, Tunisia, and Niger experienced declines, indicating limited access. Our empirical findings suggest that certain groups, such as women and individuals with limited education and lower incomes, encounter obstacles in accessing digital financial services. Factors such as education level, labor market participation and access to technology and internet infrastructure emerged as crucial in promoting digital financial inclusion. Our sample's representative nature enhances the study's practical implications, guiding public policies and international institutions to accelerate digital financial inclusion in Africa. [ABSTRACT FROM AUTHOR]

Purpose: Do financial services needs depend on the firm size? To highlight the impact of different categories of financial services on firm performance, we establish a correspondence between financial services and firms' performance classified according to their size, controlling with the determinants of firm performance and the obstacles that hinder the development of each category of firm. Design/methodology/approach: We have mobilized microeconomic data on 78,629 firms stratified by size and covering 135 countries, extracted from the Enterprise Surveys database. A two-stage least squares (2SLS) regression analysis with instrumental variable modeling is used. Findings: Our empirical results show that a firm's financing behavior differs according to its size. For micro and small firms, the availability of internal financing has a positive impact on their performance. For medium-size firms, the use of debt stimulates firm performance. For large firms, the positive effect of debt diminishes as the level of debt increases, which leads this category of firms to increase their capital. We complemented our study by exploring the issue of whether barriers to firm performance differ by size. Our results bring a support to the idea that medium-size firms suffer more than micro, small, and large firms. The size of this category of firms does not allow them to operate in the informal sector as micro and small firms do, and does not allow them to influence political authorities to operate in their favor as large firms do. Originality/value: Previous studies have focused on investigating the effects of access to finance and/or financing constraints on firm's performance, neglecting the issue of identifying which financial services have the most impact on firm performance depending on firms' size. This study fills the gap in the literature in two main ways. First, we identify the financial services that have the most impact on firm performance using firm-level data covering 78,629 firms by size (micro, small, medium, and large). Second, we investigate the different barriers to firm performance by size. [ABSTRACT FROM AUTHOR]

This paper aims to first, develop an analytical framework that examines the role of financial inclusion in promoting investment and economic growth, through the reduction of financial imperfections and considering the heterogeneity of access to the financial system. When performing a comparative analysis of the levels of financial inclusion in Africa, we mobilize the principal component analysis methodology to build the African Financial Inclusion Index (AFIndex). To test the empirical validity of the analytical conclusions, we use a panel data regression technique on a database constituted of 33 African countries over the period 2004-2019. Based on model simulations, financial inclusion stimulates investment and economic growth. Empirical results provide evidence attesting to the fact that financial inclusion has a significant and positive impact on investment and economic growth in Africa. The AFIndex shows that most African economies have a low level of financial inclusion. Our model is original as it provides analytical evidence on the negative impact of financial exclusion on economic growth, emphasizing the vital role of financial inclusion for economic growth. The AFIndex is a useful tool for designing and evaluating policies and/or programs intended for promoting financial inclusion in Africa. [ABSTRACT FROM AUTHOR]

Our study aims to investigate the role of financial inclusion as a mediator in the relationship between contextual factors and entrepreneurial willingness in Africa. While previous research has emphasized the importance of improving institutional and contextual factors to foster entrepreneurship, our study adds a new dimension by highlighting the critical need for tailored financial services that can cater to the unique needs of African entrepreneurs. In light of this, we have employed a robust and comprehensive methodology, leveraging micro-level data that covers 44,129 African adults and using Instrumental Variable Probit estimation. This approach allows us to offer valuable insights into the factors driving entrepreneurship in Africa. Our results suggest financial inclusion as a crucial determinant in the relationship between contextual factors and entrepreneurship in Africa, with the usage dimension being more important than the access dimension. Our findings reveal that the impact of contextual factors on entrepreneurship in Africa is strongly influenced by financial inclusion. By acting as a mediator, financial inclusion plays a pivotal role in shaping entrepreneurial willingness. Moreover, policymakers in Africa should focus on improving the business environment, addressing key contextual determinants of entrepreneurship where most African countries face a significant deficit compared to the world's top-ranking economies. These determinants include institutional quality, infrastructure, Information and Communication Technology (ICT) adoption, health, skills, product market, labor market, and innovation capability. Our study advances the field of research in two key ways. First, it provides empirically grounded evidence on both individual and contextual factors that can stimulate entrepreneurship in Africa. Given the representativeness of our sample, the policy implications of our study are valuable, offering useful insights for international institutions and policymakers working to promote entrepreneurship in Africa. Second, in contrast to previous studies on financial inclusion that use macroeconomic data to quantify the multidimensionality of financial inclusion, our study is unique in that it constructs a financial inclusion index based on microeconomic data to quantify the financial inclusion level of each individual in our sample. • Financial inclusion mediates contextual factors and entrepreneurship relationship. • Entrepreneurial activity thrives with financial inclusion's usage dimension. • Labor market participation is a key determinant of entrepreneurial willingness. • Merely enhancing institutional and business environment is insufficient. • Customized financial resources are critical for entrepreneurial success. [ABSTRACT FROM AUTHOR]