Impact of factors affecting financial inclusion within the informal sector: The case of Kwekwe artisanal and Small Scale gold miners

Abstract

The objective of this study was to investigate the effect of financial literacy and documentation on financial inclusion. Informed by the financial inclusion theory, both quantitative and qualitative based methodologies were employed to gather and analyse the collected data and information with the aim of achieving the stated objective. Primary data was collected using questionnaires from 212 artisanal and small scale miners from Kwekwe town in the Midlands province of Zimbabwe. A series of descriptive, correlation and regression tests were administered on the data after testing for validity and reliability of the research instrument. This was done to investigate the causal effect of the selected factors on financial inclusion. On the quantitative side, cross section econometric analysis using logit model was employed. The results concluded that financial knowledge, financial behaviour, financial attitude and documents required, have a positive causal effect on financial inclusion, however financial knowledge and financial behaviour have a statistically insignificant impact on financial inclusion among artisanal and small scale gold miners (ASGM). Recommendations were made which targeted financial institutions and the government to formulate and implement user friendly financial environment for the marginalised as well as ascertaining total financial literacy within the upcoming generation so as to achieve absolute access and usage of financial products and services