Digital Financial Inclusion and Human Development in Zimbabwe: An Analytical Review 2011-2021

Abstract

The objective of this study was to examine the relationship between digital financial inclusion and human development in Zimbabwe. It also sought to determine whether human development factors impact the progress of digital financial inclusion. Foreign direct (FDI) investment, trade, remittances, official development assistance (ODA), and inflation all of which affect the flow of funds and are touted to contribute towards the development of a country were used as intermediating and control variables on both human development and digital financial inclusion. The study employed correlation analysis and the least squares regression model to analyze data for the 11 years from 2011 to 2021 . The study finds that a bidirectional relationship exists between digital financial inclusion and human development. Education and income significantly increase the ability and willingness of people to access and use digital financial services. Direct foreign investment, Official Development Assistance and Personal remittances negatively impact the adoption and use of digital financial inclusion. Finding that the use of digital technology to access financial services requires both the Internet and mobile phones, the study recommends the government and regulators ensure that the Internet is affordable and that the network remains available for convenience and usage of financial services when needed. It is also important to invest in financial and digital education to increase awareness of the users towards embracing the various digital financial services use cases.