Levels of Financial Inclusion in the WAEMU Countries: A case study using DEA

In this study, we propose a novel methodological approach to evaluate the levels of financial inclusion of countries using an aggregate multidimensional index based on Data Envelopment Analysis (DEA). The approach is applied to countries of the West African Economic and Monetary Union (WAEMU), using the financial inclusion definition and indicators defined by the Central Bank of the West African States (BCEAO). We observed that all the eight countries had increased their levels of inclusion between 2010 and 2017 steadily. The ensuing benchmarking indicates that Senegal is the leader of the Union when it comes to financial inclusion. Further, Senegal, Benin, Ivory Coast, and Togo are the benchmark countries. For the four remaining countries, we identify reference-countries that they should emulate to increase their financial inclusion levels.