Financial Inclusion and its Determinants among Households in Jimma Zone of Oromia Regional State, Ethiopia.

Mekuanint Abera Timbula, Tadele Mengesha, Yonas Mekonnen, Matiwose Kebede


In majority of the developing countries, access to finance is demanded more for the middle and low income community and considered as a public good, which is as important and basic as access to safe water, primary education, etc. The researcher used hybrid of qualitative and quantitative approach. Exploratory research design was used in exploring and developing financial literacy frame work to study in the Ethiopian context as there is no financial literacy framework developed previously. Descriptive research design was used in describing the existing level of financial literacy, financial inclusion, saving behavior, the relationships between financial literacy and saving habit, the demographic and socio-economic characteristics of the study area. For the purpose of the study, the sample size taken for the study was 173 households. A descriptive statistics and inferential statistics were used to attain the objective of the research.  The probit regression model produced similar results as those obtained using the logit model showed that age, education, financial literacy, and income are positively related to financial inclusion and distance to the nearest provider of financial services negatively impact financial inclusion. It is possible to reduce determinates of financial inclusion with regulating well the financial system, creating healthy competition and building better enabling environment. Identifying and segregating the root causes and addressing it properly appear to be removing the distance, services charge and credit barriers. On the other hand, market for financial services failures and behavioral problems related to customer tend to be addressed through designing of appropriate financial products. Removing those challenges and expanding financial inclusion tend to be possible with the promise of latest technologies.


Financial Literacy, Financial Inclusion, Household Saving, Demand Side

Full Text:



Indexing and Abstracting Services


Other Sources and Services



Creative Commons License
International Journal of Commerce and Finance is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License.

Mailing Address

  International Journal of Commerce and Finance
Küçükyalı E-5 Kavşağı, İnönü Caddesi, No: 4
Küçükyalı, Maltepe, İSTANBUL, TURKEY
E-mail :