An analysis of financial inclusion in Uganda

Abstract

Although Uganda has made remarkable progress in improving access to financial services, there remains a lot to do to attain meaningful financial inclusion associated with reduced gender differences. This study examines the determinants of financial inclusion in Uganda and further investigates the gender differences in financial inclusion in Uganda using logistic regression models. Based on the Uganda National Household Survey 2019/20 data, the results indicate that majority of the unbanked population resides in rural areas, and that female were more likely to be financially excluded, especially concerning account ownership. Additionally, individuals living in urban areas within the working age group, employed, have at least some primary education, own a mobile phone, are married, and earn an income were more likely to be financially included. This study shows that gender significantly impacts financial inclusion in Uganda and recognises significant gender differences associated with financial inclusion. The study, therefore, recommends mainstreaming gender policy in the provision of financial services to ensure that the underserved population, especially women, are not left behind. The study further recommends investment in financial literacy for the targeted population, extension of financial services through income enhancement programmes, leveraging mobile technology as an instrument for financial inclusion through digitization as well as promotion of agent banking.