Determinants of financial inclusion among the youth in Namibia: A logit model analysis

A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Science in Applied Statistics and Demography

Financial inclusion (FI) aims to ensure equal access to affordable financial services for all members of society, particularly marginalized groups such as women, youth, and low income individuals. The study seeks to identify the drivers of FI among young people in Namibia based on a cross-sectional design, using secondary data from the 2017 Namibia Financial Inclusion Survey (NFIS). A Logit model is employed to examine the determinants and barriers of financial inclusion, whereas a descriptive analysis is utilized to explore their macro-level differences. The overall results of the model showed that there is a positive relationship between age, income, and financial inclusion while location, remittance, saving, and health status had a negative relationship with financial inclusion. The study demonstrates that the age and income of an individual have a significant positive impact on financial inclusion (p<0.05). Specifically, as individuals’ age or their income increases, the likelihood of being financially included rises. Furthermore, the logit regression results have shown that location, remittance, saving, and health status are inversely related with financial inclusion (p<0.05). The study recommends expanding financial services to rural areas and urbanizing more regions in Namibia through infrastructure development to enhance financial inclusion among the youth and the development and implementation of youth-focused policies aimed at enhancing income generating opportunities