The 2016 Brookings Financial and Digital Inclusion Project Report (FDIP), which measures a country’s progress in financial access and usage, ranked Ethiopia 25th out of 26 countries, only beating Egypt.
The FDIP evaluated 26 countries that are geographically, politically and economically diverse like Ethiopia.
Ethiopia underperformed in the financial dimension due to its low financial inclusion, which largely caused by economic and infrastructural constraints. The country earned 53pc of the total possible points.
As defined by the study, financial inclusion is access to and use of formal financial services, providing opportunities for facilitating individual prosperity and economic development.
The top-scoring countries in the analysis were Kenya, Columbia and Brazil.
The entry of Kenya’s KCB Group and South Africa’s Standard Bank to Ethiopia’s financial market should help to promote greater competition and service provision in the the financial industry, the study suggested.
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