Financial literacy, financial inclusion and inclusive growth: a case of savings and credit cooperatives in Uganda

Purpose This study aims to examine the mediating effect of financial inclusion on the relationship between financial literacy and inclusive growth among members of savings and credit cooperatives (SACCOs) in Uganda. Design/methodology/approach This study adopted a quantitative cross-sectional research design. Data were collected using structured self-administered questionnaires and analysed using SPSS and the PROCESS Macro. Descriptive statistics, correlation and regression analyses were conducted using SPSS, while mediation effects were tested using bootstrapped estimates in the PROCESS Macro. Findings The findings reveal that financial literacy and financial inclusion are positively and significantly associated with inclusive growth. In addition, financial inclusion partially mediates the relationship between financial literacy and inclusive growth. These findings suggest that enhancing financial literacy can strengthen inclusive growth outcomes through improved financial inclusion, particularly in developing economies such as Uganda. Originality/value This study extends existing literature by demonstrating the mediating role of financial inclusion in the relationship between financial literacy and inclusive growth. Unlike prior studies that mainly focus on direct relationships, this study provides empirical evidence showing that financial inclusion serves as a mechanism through which financial literacy promotes inclusive growth among SACCO members in Uganda.