The impact of COVID-19 pandemic on savings and digitalization in sub-saharan Africa countries of the OIC region

This research examines the effect of the COVID-19 pandemic on financial inclusion in the Organization of Islamic Cooperation (OIC) member countries in Africa. The researcher has used data from the Global Findex survey, 2011 – 2021 by the World Bank which allows to study how adults utilize financial services in different ways that relate to payments, savings, borrowing, and handling major financial events such as large expenses or loss of revenue or income. By using OLS logistic regression model and other statistical methods, this paper analyzes changes in household savings patterns as well as the usage of digital financial services and transactions before and after the pandemic. The findings show significant changes in financial behavior after the pandemic, including increases in precautionary savings, digital payment usage, mobile money account ownership, and indebtedness. These developments indicate a dynamic response to economic difficulties presented by this crisis with people and their financial systems quickly adjusting themselves to new conditions. Overall, this study contributes to the knowledge of the changing financial landscape following the COVID-19 pandemic and provides insights into measures for encouraging economic empowerment, reducing poverty, and building shared prosperity throughout the region. Additionally, the findings underscore the potential of Islamic finance to leverage digital innovations and promote financial inclusion while addressing challenges related to indebtedness.