Abstract:
The level of financial development is low in Sub-Saharan Africa. This has led to
high rates of financial exclusion, digital and non-digital, which may in turn have
influence on consumption inequality and multidimensional poverty. Nonetheless,
there is a dearth of study on these relationships. This study, therefore, assessed the
effect of financial development and digital financial exclusion on elements of
welfare in Sub-Saharan Africa (SSA). Data was sourced from the World Bank
and the Seventh Wave of Ghana Living Standard Survey (GLSS 7). The data was
analysed using mean, standard deviation, histograms, graphs, and multiple
regression functions estimated by Ordinary Least Squares and Random Effects.
The results revealed that financial development significantly and positively
affects consumption per capita. Also, it was shown that both digital and nondigital
financial exclusion have a significant positive effect on consumption
inequality. Furthermore, digital financial exclusion and non-digital financial
exclusion significantly and positively influence multidimensional poverty. It was
recommended that leaders of SSA countries make an effort to develop their
financial institutions and financial markets to stimulate the level of growth desired
in the subregion.
