Analysing the relationship between financial inclusion and food security in Namibia
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Date
2025
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University of Namibia
Abstract
This study focused on analysing the relationship between financial inclusion and food
security in Namibia, with the specific aim of disaggregating the analysis into rural-urban as
well as male and female headed households. The study is situated within the global context
of Sustainable Development Goal 2 (SDG2), which aims to eradicate hunger and promote
food security. The research employed a cross-sectional data which was sourced from the
Namibia Financial Inclusion Survey (NFIS) 2017 to examine associations between financial
inclusion and food security. The Ordered Probit model was used to empirically analyse the
data. In terms of empirical findings, the study finds that access and usage of formal financial
services such as bank accounts, formal savings, and access to insurance positively enhance
the level of food security. Informal savings and access to credit are less effective in rural
Namibia, pointing to structural limitations in rural financial systems. Furthermore, formal
mechanisms such as bank accounts, formal savings, and insurance, significantly improves
food security by female headed households as well as rural and urban households. However,
the limited effects were observed for male-headed households and informal financial services
highlighting structural barriers and gendered disparities in accessing and utilizing financial
resources. By policy implication, the findings show the need to integrate financial inclusion
as a core strategy to achieve SDG 2. Expanding access to formal financial services in
Namibia, particularly in rural areas can significantly reduce food insecurity. Gender-specific
initiatives targeting women should be prioritized to maximize the impact
Description
A thesis submitted in partial fulfillment of the requirements for the Degree of Master of Arts in Development Finance
Keywords
Financial inclusion, Food security, Gender, location, Ordered probit, Namibia, University of Namibia