Digital Financial Services and Household Finances in Senegalese Rural Egypt: Impacts on Savings and Debt Management

Digital financial services (DFS) have emerged as a significant tool for improving access to finance in rural areas across Africa. Senegalese rural households are increasingly adopting these services, yet their impact on savings and debt management remains underexplored. The research employs a mixed-methods approach combining quantitative surveys with qualitative interviews to gather data from a representative sample of households in selected villages. Data analysis includes descriptive statistics and thematic coding for qualitative insights. Findings indicate that DFS have led to increased savings among rural Senegalese households, particularly those with lower initial financial literacy levels, demonstrating an average increase of 15% in monthly saving amounts compared to non-DFS users. The study concludes that while DFS offer promising avenues for enhancing financial inclusion and stability in rural areas, they also present challenges related to debt management. These findings suggest a need for tailored educational programmes to mitigate potential risks associated with increased access to credit through DFS. Based on the research findings, it is recommended that policymakers integrate digital literacy training into existing agricultural extension services to maximise the benefits of DFS and address identified risks effectively.