Empowering communities: how digital financial inclusion is driving energy consumption in Sub-Saharan Africa
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Promoting financial inclusion in Sub-Saharan Africa (SSA) aims to stimulate inclusive economic growth and reduce poverty in the region. The development of improved technologies in the financial sector has made financial services accessible to a significant segment of the population in the region. Between 2004 and 2019, we assess how digital financial inclusion affects energy consumption, using the system generalised method of moments. Utilising data from the international energy agency and global Findex, the results reveal that the increased accessibility and utilisation of financial services beyond commercial bank loans lead to higher energy consumption. Moreover, financial service availability driven by mobile phone usage decreases energy intensity. However, the number of borrowers from commercial bank is negatively associated with energy consumption.
