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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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Economics & Finance |
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| 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. |
| format | Article |
| id | doaj-art-6eba2ec4e2cf49b48e51bedf6d8b0492 |
| institution | DOAJ |
| issn | 2332-2039 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| 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 |