Examining microfinance and financial inclusion nexus in poverty alleviation and sustainable development in Sub-Saharan Africa

This study explores the critical role of microfinance and financial inclusion in addressing poverty and promoting sustainable development in 10 Sub-Saharan African countries from 2000 to 2023. It addresses two key objectives: first, to investigate how microfinance influences poverty reduction and sustainable development through the moderating role of financial inclusion, and second, to determine the threshold levels at which financial inclusion variables, such as ATMs and mobile banking, significantly affect poverty alleviation and economic growth. The findings reveal that ATM penetration significantly reduces poverty and enhances GDP growth. Mobile banking also reduces poverty and contributes to economic growth. Threshold analysis shows that ATM access must exceed 36.65 units per 100,000 adults, while mobile penetration must reach 19.13 units to achieve significant impacts. The study emphasises the need for collaborative, sustainable strategies that align with the Sustainable Development Goals to maximise the impact of microfinance on poverty reduction and economic resilience. It recommends investing in digital infrastructure, such as ATMs and mobile banking, to improve accessibility. Policymakers should focus on partnerships, financial literacy programs, and tackling macroeconomic challenges like inflation and unemployment to ensure long-term stability.