Determinants of Financial Inclusion among Smallholder Farmers in Zimbabwe

Variable name	Observations	Mean	Std. dev.	Variance	Skewness	Kurtosis
Financial inclusion	445	0.950562	0.217025	0.0471	–4.15684	18.27928
Age of the household head	441	45.38209	12.73353	162.1429	0.300476	2.745366
Highest education level	441	4.099773	2.443735	5.971841	0.36687	1.945309
Employment status	441	1.578231	1.030833	1.062616	0.337922	1.733848
Annual income	441	239.3197	414.9766	172205.6	3.448793	17.75139
Financial literacy	445	0.262921	0.811292	0.658194	–0.10808	2.181049
ICT device ownership	441	1.959184	0.198089	0.039239	–4.6414	22.54255
Distance to financial institution	441	41.44898	35.63282	1269.698	8.492423	129.4015
Membership of savings group	445	0.134832	0.341928	0.116915	2.138843	5.572511

[i] Std. dev. – standard deviation.

[ii] Source: own estimation.

Table 2.

Distribution of smallholder farmers by type of financial services accessed (Nominal variables, n = 445)

Financial service	Frequencies (number of respondents)	Percentage (%)
Mobile money (payment systems)	150	33.6
Savings	120	26.9
Agricultural credit	90	20.1
Agricultural insurance	60	13.4
No services accessed	25	5.6

[i] Source: own compilation.

Table 3.

Financial inclusion across demographics and socioeconomic variables (n = 445)

Category	Financially included (%)	Financially excluded (%)
Age 18–35	45.2	54.8
Age 36–60	55.8	44.2
Age above 60	32.1	67.9
Gender – Male	60.4	39.6
Gender – Female	48.7	51.3
Primary education level	35.6	64.4
Secondary education level	50.2	49.8
Tertiary education level	68.4	31.6
Employment status (Unemployed)	28.9	71.1
Employment status (Self-employed)	55.1	44.9
Employment status (Employed)	72.3	27.7
Income level (Low)	30.5	69.5
Income level (Medium)	55.7	44.3
Income level (High)	75.9	24.1

[i] Note: “Financially included” refers to individuals accessing at least one formal or informal financial service (savings, credit, insurance, or mobile money). “Financially excluded” refers to individuals with no access to any financial services.

[ii] Source: authors’ analysis of household survey data.

Table 4.

Financial inclusion by levels (n = 445)

Financial level	Frequency	Percentage
Completely excluded	25	5.62
Basic	150	33.71
Partial	156	35.06
Comprehensive	88	19.78
Full	26	5.84

[i] Source: own compilation.

Table 5.

Metrics from the goodness of fit test

Classification confusion matrix and performance metrics
Classified	– True –		Total
Classified	D	~D	Total
+	307	16	323
–	1	0	1
Total	308	16	324
Sensitivity	Pr (+\| D)		99.68%
Specificity	Pr (−\|~D)		0.00%
Positive Predictive Value	Pr (D\| +)		95.05%
Negative Predictive Value	Pr (~D\|–)		0.00%
False + rate for true ~D	Pr (+\|~D)		100.00%
False – rate for true D	Pr (−\|D)		0.32%
False + rate for classified +	Pr (~D\|+)		4.95%
False – rate for classified –	Pr (D\|–)		100.00%
Correctly classified	94.75%

Goodness-of-fit test
Statistic	Value
Number of Observations	324
Number of Covariate Patterns	313
Pearson Chi-square (chi²(299))	239.90
Prob > chi²	0.9982

[i] Source: own analysis based on household survey data.

Table 6.

Results of the logistic regression model on determinants of basic financial inclusion

Variable	Coefficient	Std. error	z-value	P>\|z\|	95% Confidence Interval
Financial literacy	0.8794	0.198	4.44	< 0.001	[0.4913, 1.2676]
Age category	0.1882	0.1182	1.59	0.111	[–0.0436, 0.4199]
Financial market proximity (km)	–0.0283	0.0071	–4.02	< 0.001	[–0.0422, −0.0145]
Highest education level attained	–0.1052	0.0596	–1.76	0.078	[–0.2221, 0.0117]
Household size	0.1078	0.0618	1.74	0.081	[–0.0133, 0.2290]
Farm size (ha)	0.0058	0.0037	1.56	0.118	[–0.0015, 0.0130]
ICT device ownership	Omitted	–	–	–	–
Employment status	0.0549	0.1418	0.39	0.698	[–0.2230, 0.3328]
Mobile network connectivity	–0.2176	0.6193	–0.35	0.725	[–1.4315, 0.9963]
Membership of savings group	–0.9024	0.4277	–2.11	0.035	[–1.7407, −0.0641]
Constant (cons)	–0.6431	0.8916	–0.72	0.471	[–2.3905, 1.1044]