In this article based on her 2017 MA thesis, alumna Diane Irankunda and Professor Peter van Bergeijk study street vendors Nyarugenge District (Kigali, Rwanda). They investigate the assumptions by policymakers about the determinants of financial inclusion of informal sector workers in order to strengthen the evidence base for Rwandan policies aimed at financial inclusion of the informal sector.
Their analysis supports the importance of gender for the use of bank accounts by the self-employed in the informal sector, contradicting policy makers’ views that individual characteristics are not important for the formal decision to accept an individual as an account holder at a financial institution.
The driver of financial inclusion is the presence of a financial institution in the area
The presence of a financial institution in the home location of the street vendor is the most significant determinant of financial inclusion.
From a policy perspective this underlines the importance of good financial infrastructure. As the driver of financial inclusion of street vendors is the availability of a financial institution in the street vendor’s hometown, thus providing policymakers with a tool to improve financial inclusion in Rwanda.
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Read the full article online - 'Financial Inclusion of Urban Street Vendors in Kigali'