Decomposing rural-urban inequalities in financial inclusion in Tanzania

Financial inclusion is a cornerstone for both individual welfare and national economic prosperity; however, persistent rural-urban inequalities in Tanzania continue to limit equitable access to and utilisation of financial services and products. Employing 2021 Global Findex data, this study applies...

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Main Authors: Steven Lee Mwaseba, Emmanuel Simon Mwang’onda, David Ngwilizi
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2025.2537185
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author Steven Lee Mwaseba
Emmanuel Simon Mwang’onda
David Ngwilizi
author_facet Steven Lee Mwaseba
Emmanuel Simon Mwang’onda
David Ngwilizi
author_sort Steven Lee Mwaseba
collection DOAJ
description Financial inclusion is a cornerstone for both individual welfare and national economic prosperity; however, persistent rural-urban inequalities in Tanzania continue to limit equitable access to and utilisation of financial services and products. Employing 2021 Global Findex data, this study applies the Recentered Influence Function (RIF)-Oaxaca decomposition analysis, supported by Erreygers concentration index to examine the factors associated with these inequalities. The results show financial inclusion is predominantly concentrated among wealthier individuals, which also leaves rural communities at a disadvantage. The significant factors associated with rural-urban inequalities in financial inclusion in Tanzania are financial literacy, mobile phone ownership, individual income and internet access, while being in the workplace plays a comparatively weaker role. The findings align with the global and national agenda of empowering underprivileged groups, particularly rural areas, and enhancing financial inclusion for all. These findings suggest that policy interventions should prioritise rural-targeted financial literacy programmes, expansion of digital infrastructure and inclusive product design to ensure equitable financial inclusion.
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spelling doaj-art-6eba2ec4e2cf49b48e51bedf6d8b04922025-08-20T03:14:32ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2537185Decomposing rural-urban inequalities in financial inclusion in TanzaniaSteven Lee Mwaseba0Emmanuel Simon Mwang’onda1David Ngwilizi2Department of Rural Development and Regional Planning, Institute of Rural Development Planning, Dodoma, TanzaniaDepartment of Rural Development and Regional Planning, Institute of Rural Development Planning, Dodoma, TanzaniaDepartment of Rural Development and Regional Planning, Institute of Rural Development Planning, Dodoma, TanzaniaFinancial inclusion is a cornerstone for both individual welfare and national economic prosperity; however, persistent rural-urban inequalities in Tanzania continue to limit equitable access to and utilisation of financial services and products. Employing 2021 Global Findex data, this study applies the Recentered Influence Function (RIF)-Oaxaca decomposition analysis, supported by Erreygers concentration index to examine the factors associated with these inequalities. The results show financial inclusion is predominantly concentrated among wealthier individuals, which also leaves rural communities at a disadvantage. The significant factors associated with rural-urban inequalities in financial inclusion in Tanzania are financial literacy, mobile phone ownership, individual income and internet access, while being in the workplace plays a comparatively weaker role. The findings align with the global and national agenda of empowering underprivileged groups, particularly rural areas, and enhancing financial inclusion for all. These findings suggest that policy interventions should prioritise rural-targeted financial literacy programmes, expansion of digital infrastructure and inclusive product design to ensure equitable financial inclusion.https://www.tandfonline.com/doi/10.1080/23322039.2025.2537185Financial inclusioninequalitiestanzaniaruralurbanRIF
spellingShingle Steven Lee Mwaseba
Emmanuel Simon Mwang’onda
David Ngwilizi
Decomposing rural-urban inequalities in financial inclusion in Tanzania
Cogent Economics & Finance
Financial inclusion
inequalities
tanzania
rural
urban
RIF
title Decomposing rural-urban inequalities in financial inclusion in Tanzania
title_full Decomposing rural-urban inequalities in financial inclusion in Tanzania
title_fullStr Decomposing rural-urban inequalities in financial inclusion in Tanzania
title_full_unstemmed Decomposing rural-urban inequalities in financial inclusion in Tanzania
title_short Decomposing rural-urban inequalities in financial inclusion in Tanzania
title_sort decomposing rural urban inequalities in financial inclusion in tanzania
topic Financial inclusion
inequalities
tanzania
rural
urban
RIF
url https://www.tandfonline.com/doi/10.1080/23322039.2025.2537185
work_keys_str_mv AT stevenleemwaseba decomposingruralurbaninequalitiesinfinancialinclusionintanzania
AT emmanuelsimonmwangonda decomposingruralurbaninequalitiesinfinancialinclusionintanzania
AT davidngwilizi decomposingruralurbaninequalitiesinfinancialinclusionintanzania