Financial Inclusion in Africa Smallholder
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Date
2016
Authors
Beck, Thorsten
Ncube, Mthuli
Otchere, Isaac
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
The More than two billion people worldwide don’t use formal financial services, and up to 50% of adults in the poorest households are unbanked (Global Findex, 2015). And yet, financial inclusion is a key enabler to reducing poverty and boosting prosperity. In Africa, less than a quarter of adults have an account with a formal financial institution, and many of these adults use informal methods to save and borrow. Similarly, the majority of small and medium enterprises in Africa are unbanked and access to finance is a major obstacle. Compared with other developing economies, high-growth small and medium enterprises in Africa are less likely to use formal financing, which suggests formal financial systems are not serving the needs of enterprises with growth opportunities.
The AERC Senior Policy Seminar (SPSXVIII) was a great occasion to share the lessons emerging from financial inclusion initiatives in Africa and the rest of the world with relevant policy makers and private sector actors in the continent. These contributions heightened the debate on the importance of financial inclusion as a catalyst for inclusive growth. The theme for the AERC Senior Policy Seminar was “Financial Inclusion in Africa”. The seminar was held in Nairobi, Kenya, March 22-23, 2016.