DIGITAL FINANCIAL CAPABILITIES AND FINANCIAL INCLUSION AMONG WOMEN MICRO-ENTREPRENEURS IN JUBA’S INFORMAL ECONOMY
DIGITAL FINANCIAL CAPABILITIES AND FINANCIAL INCLUSION AMONG WOMEN MICRO-ENTREPRENEURS IN JUBA’S INFORMAL ECONOMY
Madul Abraham Anyuat - Lecturer, Department of Accounting and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya
Dr. Francis K. Gitagia, (Ph.D) - Lecturer, Department of Accounting and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya
ABSTRACT
In Juba, levels of financial inclusion among women micro-entrepreneurs remain considerably low, with fewer than 5% holding functional financial accounts, less than 3% regularly using mobile money services, approximately 1% accessing formal credit facilities, and overall active digital financial usage remaining below 2%. This study examined the effect of digital financial capabilities on the financial inclusion of women micro-entrepreneurs operating within Juba’s informal economy. Specifically, the study evaluated the influence of basic digital capability, digital savings capability, digital credit capability, and advanced digital capability on financial inclusion among women-owned informal enterprises. The study was guided by the Diffusion of Innovations Theory, Life-Cycle Hypothesis, Credit Rationing Theory, Technology Acceptance Model, and Financial Intermediation Theory. An explanatory cross-sectional research design was utilized. The target population comprised approximately 900 women-owned informal enterprises operating across major market clusters within Juba City. Using Yamane’s (1967) formula, a sample of 277 respondents was chosen through simple random sampling techniques. The findings revealed that basic digital financial capability had a positive and statistically significant effect on financial inclusion by strengthening women’s ability to engage with digital financial services. Digital savings capability also recorded a positive and significant effect, suggesting that women who utilized digital saving mechanisms demonstrated stronger participation in formal financial systems. The findings further established that digital credit capability positively influenced financial inclusion by improving women’s interaction with formal lending channels through digital platforms. Advanced digital financial capability equally had a positive and statistically significant effect on financial inclusion, suggesting that use of digital bookkeeping systems, merchant payment platforms, and electronic payment services strengthened engagement with formal financial systems. The study concludes that digital financial capabilities remain important determinants of financial inclusion among women micro-entrepreneurs operating within Juba’s informal economy. The study recommends strengthening community-based digital financial literacy initiatives, promoting flexible digital saving systems suited to informal incomes, simplifying digital lending processes through borrower guidance mechanisms, and supporting development of localized digital business management tools tailored to women-owned informal enterprises.
