The Impact of Financial Inclusion Application on Economic Growth in Africa (during the Period from 2002-2020)

The research aims to determine the extent to which the requirements for the application of financial inclusion are available in Africa, and to find out to what extent the application of financial inclusion contributes to raising the rate of economic growth in Africa. Credit granted to the private sector and technological progress as important conditions for digital transformation, which in turn is an important requirement to support financial inclusion. The researcher used both the deductive and the inductive approaches using the Cobb-Douglas function, using Panel Data, and relying on World Bank data, and the PMG-ARDL method, to determine the degree of correlation between financial inclusion and the rate of economic growth. The research concluded that the financial infrastructure necessary to implement financial inclusion in most of the African countries under study is weak, and this was reflected in the low impact of financial inclusion on economic growth, while the significant impact of population and then capital formation on economic growth was evident in comparison to financial inclusion. The degree of influence of financial inclusion on the rate of economic growth depends on the degree of development of the financial sector in the country. Accordingly, the research recommended the necessity of paying attention to the application of financial technology to enhance the activation of financial inclusion in Africa, working to pay attention to establishing a digital database and supporting digital transformation in Africa, expanding the scope of financial services provided to individuals, expanding the scope of loans provided to small and medium enterprises, spreading the culture of responsible financing in Banking work, developing programs and policies that enhance transparency in financial transactions, interest in spreading community awareness of the concept of financial inclusion for all age groups.