Financial Inclusion, Regulation, and Inclusive Growth in Ethiopia

Assessing factors responsible for poor growth of the financial sector in Ethiopia
This paper explores the linkages between financial inclusion, regulation, and inclusive growth in Ethiopia. It identifies and analyzes the structure and performance of the financial sector in the country. It studies the various regulatory measures adopted to support financial stability and promote inclusive growth. It also evaluates advantages and disadvantages of different regulations, key national risks to financial stability, and gaps in the financial sector for funding inclusive growth. The research is based on extensive use of both primary and secondary data. The paper covers the following sections in detail:  
  • Structures, size, service coverage, and performance of the financial sector in Ethiopia;
  • Status of financial inclusion and the regulatory mechanism that influence financial inclusion in the country;
  • Relationship between financial sector and inclusion and designing regulations to encourage an optimally sized and composed financial sector for financial inclusion;
  • Channels through which the financial sector can directly affect inclusive growth and financial stability including the mechanisms through which regulation influences these processes;
  • Capital account management in Ethiopia and its impact on financial stability and inclusive growth;
  • Existing and potential key country risks to financial stability and inclusive growth.

About this Publication

By Zwedu, G.A.