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Abstract: In Liberia, as in many developing economies in
sub-Saharan Africa, the rapid evolution and adoption of digital financial
services such as MTN MoMo, Orange Money, Tip Me, BNB, Kola Cash, and digital
banking applications have surpassed the development of a comprehensive
nationwide digital financial literacy awareness campaigns and educational
programs. This gap lowers Liberia’s digital financial inclusion rate and
impedes initiatives to bridge the country’s digital divide. As digital
financial services expands in Liberia, assessing the impact of digital
financial literacy on both digital financial inclusion and the digital
inclusion becomes increasingly important. This study examines the influence of
digital financial literacy on digital financial inclusion and digital inclusion
in Liberia using a quantitative methodology. Data were collected from 650
respondents across Montserrado, Margibi, Grand Bassa, and Bomi counties
utilizing a customized OECD-structured digital financial literacy
questionnaire. The digital financial literacy index score, digital financial
inclusion rate, and digital inclusion rate for all four counties were
constructed using the OECD digital financial literacy measurement tool and a
3–7-point Likert scale adapted from the Australian Digital Inclusion Index, the
World Bank, and the World Food Program (WFP) digital financial inclusion
measurement scale. Results demonstrate that digital financial literacy is
directly and positively associated with digital financial inclusion and digital
inclusion in Montserrado, Margibi, Grand Bassa, and Bomi counties. Montserrado
County recorded above-average digital financial literacy index mean scores,
while Margibi, Grand Bassa, and Bomi counties reported moderate mean index
scores. Digital financial inclusion rates were 56.39% in Montserrado, 50.44% in
Margibi, 35.11% in Grand Bassa, and 34.56% in Bomi. Digital inclusion rates
were 58.58% in Montserrado, 48.37% in Margibi, 36.74% in Grand Bassa, and
37.89% in Bomi. These findings highlight digital financial literacy as a
critical enabling factor for promoting nationwide digital financial inclusion
and narrowing digital divide gaps in Liberia. The study recommends that the
Government of Liberia, through the Central Bank of Liberia establish a national
digital financial literacy index score, develop a comprehensive digital
financial literacy roadmap, design a legal, regulatory, and policy framework
for digital financial literacy, and introduce systematic evaluation, impact
assessment, and institutional incentive programs to advance digital financial literacy
in Liberia. DOI: https://doi.org/10.51505/IJEBMR.2026.10809 |
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