The Dynamics of Financial Inclusion in Ethiopia

The report seeks to inform how the country can accelerate nationwide integration into the formal financial system to enable progress in poverty reduction, equality, and other relevant reforms under the Home-Grown Economic Reform Agenda (HGERA). The report supports the ongoing reforms in the financial sector and identifies strategic priorities and types of interventions. The goal is to fully understand the extent to which individuals in the country access and use formal financial services. Measuring financial inclusion, quantifying the effectiveness of initiatives such as mobile banking, banking agents, and financial education programs, and identifying and understanding the pathways to enabling people to enter the financial system is essential for policymakers and practitioners working to develop and design policies and programs meant to promote financial inclusion.

The objective of the study is to examine the evolution of the financial inclusion of individuals over time, identify the pathways that enable an individual’s decision to move out of being unbanked, define the channels people use to enter the financial system, and explore opportunities to drive up equitable financial inclusion.