The role of cross-border banking in fostering financial inclusion in sub-Saharan Africa

Mugimba, Longay Bonaventure
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Abstract Cross border banking (CBB), though not a new phenomenon from a historical point of view, has been gaining in importance in the past decade or so in the world. This situation has engendered a heated debate about its bene ts between its sympathizers and antagonists. In particular, relying on the literature, this report investigates its role in fostering nancial inclusion in sub- Saharan Africa. Using a data sample of ve sub-Saharan economies and after applying a trend analysis (i.e. an analysis involving comparison of the same variable over a signi cant period of time to detect a general pattern between associated variables), and a correlation test (i.e the degree to which two or more variables are linearly associated) to it; this report nds that indeed cross border banking does have a bene cial role in fostering nancial inclusion in this region of the world with the e ect of CBB on nancial inclusion being more important in the following order for the ve countries: Zambia (2.4319 points), Ghana (1.6892 points), Uganda (1.2355 points), Tanzania (0.5258 points), and Mozambique (0.4588 points). Furthermore, the report also stresses the importance of a nancial inclusion that induces inclusive economic growth for job creation (i.e. the ability of nancial institutions, banks here, to e ectively intermediate) in the region and thus suggests a way of testing for the role of cross border banking in furthering nancial inclusion.
Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2015.