The government of India has pledged to contribute $2 million towards the Africa Digital Financial Inclusion Facility (ADFI), a multi-donor fund aimed at accelerating digital financial inclusion in Africa.
In partnership with the African Development Bank (AfDB) seeks to help eliminate barriers to the growth and uptake of digital financial solutions in Africa.
In a statement, AfDB, revealed that India will bring on board its experience and expertise from its digital financial systems that are successful and inclusive.
Commenting on the Digital Financial Inclusion Facility, Manisha Sinha, India’s Additional Secretary in the Department of Economic Affairs, affirmed that India as a country has plenty to offer Africa in the quest to achieve an equitable and inclusive digital finance ecosystem.
“India’s pioneering role in digital financial services, extending financial inclusion to remote rural areas and creating infrastructure for digitisation of financial services, opens a significant opportunity for India to work within the ADFI partnership to share learning and expertise on digital public infrastructure to further digital financial inclusion across the continent,” Ms Sinha noted.
On his part, Solomon Quaynor, AfDB’s vice president for the Private Sector, Infrastructure and Industrialization, welcomed India’s support noting that the country’s success story in the digital public infrastructure will come in handy in implementing Digital Financial Inclusion goals.
India now joins a host of other donors supporting the initiative including the Bill and Melinda Gates Foundation and France’s Agence française de developpement (AFD).
Reality check for Africa Financial Inclusion
Despite the evident rise in the number of fintechs and digitization in Africa, data from the World Bank indicates that more than 50 percent of Africa’s adult population is still locked out from digital financial solutions.
Women, youth and businesses in rural areas form a significant chunk of the disadvantaged people in terms of access to digital finance services hence delaying efforts towards achieving sustainable and equitable development across the continent.
Through Digital Financial Inclusion, AfDB and other stakeholders are looking to correct the situation and help to catalyze financial inclusion in the digital space.
The initiative is part of AfDB’s Ten-Year Strategy focus on inclusive growth and efforts to ensure all genders have equal access to critical services while doing business.