Financial Inclusion and Livelihood Development of Small-Scale Fishermen: A Systematic Literature Review

Abstract

Financial inclusion is an effective tool to enhance livelihoods of the marginalized including small-scale fishermen families that are vital for ensuring food security, employment and rural upliftment. Despite their vital contribution to the nation’s economy,  small scale fishery sector practitioners have limited access to formal financial services,  banking facilities,  credit, savings, insurance, digital finance and mobile banking which dilutes livelihood opportunities. This paper explores the impact of financial inclusion on livelihood development among smallscale fishermen through a systematic review of literature.  Peer-reviewed articles from Google scholar, Scopus, Elsevier, Science Direct, Proccia, Taylor and Francis, Business Source and Emerald were selected using specific inclusion and exclusion criteria. Based on thematic analysis, most of the studies identified correlated financial inclusion with enhancement of income and savings, asset base, fishing investment, financial resilience and poverty alleviation during the period 2000-2020. The paper establishes that inadequate financial literacy, lack of collateral, seasonal income/inflows, shallow financial infrastructure,  high transaction costs,  informal sources of borrowing and basic banking services limit access to formal finance for poor fishing households.  It concludes that empowering fisheries by improving inclusive finance policy,  increasing digital financial services, improving the financial literacy,  promoting fisheries specific financial services, encouraging the use of mobile technology and designing other fisheries specific financial products can thus provide more sustainable livelihoods to small scale fishermen.  It highlights research knowledge gaps and makes recommendations for future research and policy formulation for sustainable fisheries.