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AfDB, MasterCard seek inclusive growth in Africa

By on January 27, 2015

The African Development Bank and MasterCard have announced a broad collaboration that aims to expand financial inclusion across the African continent.

The collaboration seeks to develop solutions that drive inclusive growth in Africa by broadening access and usage of digital financial services.

While MasterCard brings proven expertise to design and scale inclusive financial services solutions and infrastructure, the AfDB actively promotes sustainable economic growth and poverty reduction in Africa.

Together they will work with African governments and local private sector companies to develop and deliver affordable services that meet the needs of a wide consumer base, especially the traditionally unbanked.

According to a statement by MasterCard, the partnership will seek to build cohesive African financial systems that drive inclusion at a country level and enable service delivery to traditionally excluded populations.

The two companies will invest in a set of innovative financial services companies and solutions targeted at addressing barriers that hinder financial inclusion, while sharing knowledge across academic, policy and commercial sectors to create thought leadership on financial inclusion and economic development.

The statement quoted the President, AfDB, Mr. Donald Kaberuka, as saying, “Despite the phenomenal economic growth in Africa, this has not translated into shared prosperity and better livelihoods for the majority. Growth has to be inclusive to be socially and politically sustainable.

“One key component of inclusive development is financial inclusion, an area in which Africa has been lagging behind other continents.

“Broadening access to financial services will mobilise greater household savings, marshal capital for investment, expand the class of entrepreneurs, and enable more people to invest in themselves and their families.”

The President and Chief Executive Officer, MasterCard, Mr. Ajay Banga, was also quoted as saying, “Less than one adult out of four in Africa has access to an account at a formal financial institution.

 

[Punch]