Financial Inclusion: Empirical Verification among Households in Congo-Brazzaville

Abstract

Congo, like other African countries, has low financial inclusion. However, in recent years, there has been an increase in the number of traditional and microfinance banks. This increase was driven by reforms in the financial and banking sector. However, these reforms have not significantly improved household financial inclusion indicators. This study therefore pursued the following objectives: what are the determinants of household financial inclusion in the Congo? And what are the barriers to household financial inclusion? The methodology used was based on a field survey. The survey involved a sample of 2000 individuals aged 18 and over. The study used econometric analysis, particularly probit models. The results revealed the following determinants of financial inclusion: age, women, income and educational level. As for the barriers to financial inclusion, the following determinants can be noted: low income of individuals; preference for hoarding; the financial conditions required for opening an account. From this study, the following conclusions were drawn: effectively implement the policy of liberalization of the banking and financial system and the overhaul of monetary policy instruments; set up a regulatory and supervisory body for banks and financial institutions in order to promote competition; integrate financial inclusion into national gender policies; develop strategies for the employability of young people and women; promote women’s education and promote women’s empowerment.