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IFC, Mastercard Foundation Launch Handbook to Promote Financial Inclusion

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IFC, a member of the World Bank Group, together with the Mastercard Foundation, has launched the Digital Financial Services for Agriculture Handbook to support the expansion of financial inclusion to smallholder farmers and agricultural value chain actors in Sub-Saharan Africa.

Financial inclusion has expanded dramatically in the region over the past 10 years due to the rapid evolution of mobile money and agent banking. But access to formal financial services remains limited in rural areas and in the agricultural sector.

Although agriculture contributes to about 18 percent of GDP across Sub-Saharan Africa, only an estimated one percent of bank lending in the region is allocated to the agricultural sector.

Riadh Naouar, IFC Manager for Financial Institutions Group Advisory in Sub-Saharan Africa, said “This handbook will help financial services providers better understand smallholder farmers and other actors in the agricultural value chains, and how to develop and launch sustainable financial services for them.

“Digital services can help farmers better access inputs, weather updates, pricing information, and markets.”

This is the fourth handbook on how to develop digital financial services published by the Partnership for Financial Inclusion, a $37.4 million joint initiative of IFC and the Mastercard Foundation to expand microfinance and advance digital financial services in Sub-Saharan Africa.

The handbook was officially launched yesterday at the 2018 Partnership Knowledge Event in Dar es Salaam, Tanzania, which brings together about 200 industry practitioners and experts to explore the future of financial inclusion in Africa.

In a joint call to the industry, Sergio Pimenta, IFC Vice President, Middle East and Africa, and Ann Miles, Director, Thought Leadership and Innovation, Mastercard Foundation, urged stakeholders to move beyond the remarkable advances for financial inclusion of recent years.

“It is now time for the regional financial industry, investors, development finance institutions, and regulators to make a final push and build on the gains made so far so that the benefits of formal financial services extend to all African adults.”

There is an emerging body of evidence on the impact that digital financial inclusion can have on inclusive economic growth and development.

A Partnership study showed that smallholder cocoa farmers in Côte d’Ivoire who saved regularly were better able to feed their families than those who did not save, irrespective of the farmers’ annual income.

The same study also revealed that many smallholder cocoa farmers felt ‘socially excluded’ by traditional banks but were generally accepting of agent banking and digital services.

The Digital Financial Services for Agriculture Handbook is available online, together with all other research reports and knowledge publications of the Partnership for Financial Inclusion.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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