Determinants of Financial Inclusion among Rural Households in West Wollega Zone, Ethiopia

Abstract

The General objective of the study is to investigate the determinants of financial inclusion among rural households in the West Wollega Zone of Oromia regional state, Ethiopia. The study used an explanatory research design and a mixed research approach. This study selected respondents through multi-stage sampling techniques, and used a questionnaire to collect the necessary data from 384 sample households. The data were analyzed using descriptive statistics and a logistic regression model. The result of regression shows that among the incorporated independent variables; financial literacy, level of awareness, monthly income, level of education, and age of household heads had positive relationship with the financial inclusion of households with significance level of 0.000, 0.004, 0.000, 0.030, and 0.018 respectively. The remaining variables had insignificant effect on financial inclusion of rural households. The research findings would have an impact on different stakeholders and policy makers with respect to financial inclusion among rural households. The study recommends promotion of financial education, and creating awareness about financial system among rural households. The study would also contribute to knowledge gap and capacity building with respect to determinants of financial inclusion among rural households in west wellega zone of Oromia regional state, Ethiopia.