Does Digital Financial Inclusion Matter for Agricultural Jobs Generation in the Post-Pandemic Era in SSA Countries?

Abstract

<title>Abstract</title> Job generation remains a main challenge for African countries that face an increase in the labour force population. The agriculture sector remains the major provider of employment in Africa. This sector is faced with several problems such as access to credit, which is limited due to the population's low financial inclusion. The recent COVID 19 pandemic had consequences not only on financial services but also on jobs. The rapid development of information communication and technology (ICT) constitutes a way to include underserved people in financial services through digital platforms to increase their access to credit and in turn generate jobs. This paper was undertaken in this context to assess the digital financial inclusion (DFI) influence on agricultural job generation in Sub-Saharan African (SSA) nations. Using a sample of 26 SSA nations over the period 2014-2021 and the general method of moments in the system (SGMM) on panel data, the estimation results show that digital access and digital use promote employment in agriculture. Similarly, the DFI improves employment in agriculture, allowing us to confirm that DFI is a factor that promotes employment in agriculture in SSA nations. However, the study suggests that to reduce unemployment in SSA nations, governments and policymakers must take action to include individuals in financial services through the development and use of digital platforms. <bold>JEL Codes</bold>: G20 – O16 – O30 – J21