This paper analyzes the determinants of financial
inclusion and proposes an instrument of measuring financial inclusion in West
African Economic and Monetary Union (WAEMU) countries. WAEMU countries do not
have a reliable synthetic index to measure their financial inclusion level. The
need for an accurate way to assess financial inclusion in the WAEMU zone is
imperative because a set of indicators has been adopted within the Regional
Financial Inclusion Strategy by the Central Bank of West African States
(CBWAS). Our panel regressions reveal that real GDP, mobile phone penetration,
and literacy rate have a positive effect on
financial inclusion. Conversely, the weight of the rural population and
interbank credit is negatively associated with the level of financial
inclusion. Agricultural financing via the credit channel that banks grant to
the government is likely to increase financial inclusion. We also find a
positive impact of rural-oriented literacy on financial inclusion.
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