Unlocking Financial Inclusion in Malawi: A Comprehensive Socio-Economic Analysis

Hannah M. Dunga ORCID iD 

Issue: Vol.6 No.14 Article 41 pp.3944 – 3958
DOI: https://doi.org/10.38159/ehass.202561441 | Published online 30th December, 2025
© 2025 The Author(s). This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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Financial inclusion is a pivotal factor in fostering economic growth and reducing poverty, yet many developing countries, including Malawi, face significant challenges in this domain. This study investigated the determinants of financial inclusion in Malawi using 2021 data collected by the National Statistics Office in collaboration with the World Bank. By employing the Probit regression model, it analyzed the impact of various socio-economic factors such as age, gender, education level, income, geographic location, and workforce participation on the likelihood of individuals and households accessing financial services. The results reveal that education, workforce participation, geographic location, and access to the internet are key determinants of financial inclusion. Specifically, individuals with higher educational attainment, those in the workforce, and those residing in urban areas are more likely to access formal financial services, while those outside the workforce and living in rural areas face significant barriers. Moreover, mobile banking presents a viable tool for expanding financial services, particularly in rural and underserved areas, where formal banking services are limited. Based on these findings, the study offers several recommendations: prioritizing education and financial literacy programs, expanding internet access and digital infrastructure, promoting workforce participation, developing tailored financial products for marginalized groups, and strengthening the mobile banking ecosystem. These recommendations aim to address the socio-economic barriers to financial inclusion, with a focus on reducing inequalities and fostering inclusive economic growth. This comprehensive analysis contributes to a broader understanding of financial inclusion in Malawi and provides a foundation for future research and policy development.

Keywords: Financial inclusion, Malawi, socio-economic factors, mobile money, poverty reduction.

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Dr. Hannah Dunga is a development economist whose research focuses on gender inequalities and the socio-economic challenges facing vulnerable households. She holds a PhD in Economics and specialises in gender studies, with particular emphasis on poverty, food security, and housing insecurity. Her work examines how structural barriers shape the lived experiences of women, especially those in marginalised and female-headed households, and how policy interventions can promote equitable and sustainable development. Dr. Dunga has presented her research at national and international conferences and has published in reputable academic journals. Her scholarship is driven by a commitment to advancing gender-responsive policy solutions that improve the well-being and resilience of disadvantaged communities.

Dunga, Hannah M. “Unlocking Financial Inclusion in Malawi: A Comprehensive Socio-Economic Analysis.” E-Journal of Humanities, Arts and Social Sciences 6, no. 14 (2025): 3933 – 3943, https://doi.org/10.38159/ehass.202561441.

© 2025 The Author(s). Published and Maintained by Noyam Journals. This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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