Impact of financial inclusion on economic growth in East Africa and South Asia: a regional comparative study

Abstract

This study explores the effect of financial inclusion on economic growth between East Africa and South Asia. The two regions are of similar development ambitions, but have differences regarding financial infrastructure and institutional maturity. Financial access and use in the sense of financial inclusion is becoming a more influential aspect of empowering people financially, encouraging entrepreneurship, and developing full economic participation. Even though it is increasingly acquiring a lot of significance, its impact is not the same in different contexts. A regional comparative analysis of this study reveals that economic growth has been maintained through an increase in financial access in both regions. Findings are particularly crucial as they demonstrate that South Asia has a powerful, long-term financial inclusion effect. This difference has deeper structural roots such as policy design, digital readiness, and institutional stability. The generalized approach is not recommended for this case. There is a need for financial inclusion policies tailored to the local realities in order to provide meaningful results. The research contributes to the broader development debates by pointing out that inclusive financial systems do not only promote economic performance but also equity and resilience. It suggests that policy makers, development practitioners and financial institutions can use financial inclusion as a tool for sustainable and inclusive economic growth.