THE DETERMINANTS OF FINANCIAL EXCLUSION IN CENTRAL AFRICAN REPUBLIC

Abstract

The aim of this study is to investigate the factors that explain financial exclusion in order to contribute to a broader understanding of the mechanisms of financial exclusion in Central African Republic.  Specifically, the aim is to identify the factors that explain the population's financial exclusion.  To address our concerns, we use a simple Logit model.  The data for the study come from a household survey of a sample of 478 individuals in three towns in the country, taking into account both urban and rural households.  The dependent variable is latent and captures the fact of not using financial services.  The main findings of the study were that difficult access to the Internet is one of the causes of financial exclusion in the country, despite the development of the mobile money system.  In addition, the low levels of education and income of the population also explain their difficulties in accessing financial services.  Finally, the area in which people live, in other words living in rural areas, is also a cause of exclusion from financial services.  The results of the study suggest interventions aimed at improving access to financial education, deploying mobile phone services and opening up rural areas through Internet access.