15-03-05-FSDA-Short-Strategic-Plan1
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FSD Africa is a £35 million program funded by DFID to reduce poverty in sub-Saharan Africa by developing efficient, robust and inclusive financial markets. It aims to do this by identifying and addressing market failures, building the capacity of local actors, and fostering collaboration across the financial sector. FSD Africa works with a variety of partners including governments, private institutions, donors and thought leaders on initiatives focused on financial inclusion, finance for growth, and supporting the broader FSD Network across the region.
15-03-05-FSDA-Short-Strategic-Plan1
- 1. fsdafrica FSD Africa Strategic Plan 2013–2018 Summary REDUCING POVERTY THROUGH FINANCIAL SECTOR DEVELOPMENT
- 2. This is Africa’s century… Poverty is reducing Cities are booming Over a decade of economic stability and growth Its people are young and resourceful Financial markets are playing a key role… Providing capital for growth, investment and jobs Providing services that reduce vulnerability A bridge to reach the excluded – women, rural dwellers and the poor Despite progress, financial markets remain constrained… The Challenge The investment gap in Africa for infrastructure is per year $32 bn ©JohnFerguson,Oxfam There is too little capital: • to build housing and key infrastructure, or • grow the companies that provide jobs and prosperity Around 200 million adults still have no bank account to: • receive a loan to grow a small business • save to send a child to school, or • insure against illness FSD AFRICA – STRATEGIC PLAN 1
- 3. 2 FSD AFRICA – STRATEGIC PLAN Some definitions… What is Financial Sector Development? “…emergence of a robust efficient and inclusive financial market system” What is Finance for Growth? “…provision of capital to investment- ready sectors to drive inclusive economic growth” What is Financial Inclusion? “…expansion of a range of financial services (including saving and deposit services, payment and transfer services, and credit and insurance) to businesses and all sections of society” 1 3 2 FSD AFRICA – STRATEGIC PLAN 3 What is FSD Africa? To do this, FSD Africa acts as a market facilitator or catalyst. It applies a combination of resources, expertise and research to address financial market failures and deliver a lasting impact. FSD Africa has a mandate to work across sub-Saharan Africa on issues that relate to both ‘financial inclusion’ and ‘finance for growth.’ FSD Africa is also a regional platform. It fosters collaboration, best practice transfer, economies of scale and coherence between development agencies, donors, financial institutions, practitioners and government entities with a role in financial market development in sub-Saharan Africa. In particular, FSD Africa provides strategic and operational support to the FSD Network. Created in 2012, FSD Africa is a £35 million, DFID-funded financial sector development programme or ‘FSD’ based in Nairobi. It aims to reduce poverty across sub-Saharan Africa by building financial markets that are efficient, robust and inclusive. The Response
- 4. FSD AFRICA – STRATEGIC PLAN 54 FSD AFRICA – STRATEGIC PLAN The FSD Network is a group of nine financial sector development programmes or ‘FSDs.’ Located across sub- Saharan Africa, it includes seven national FSDs (Access to Finance Rwanda, Enhancing Financial Innovation Access in Nigeria, FSD Kenya, FSD Moçambique, FSD Tanzania, FSD Uganda and FSD Zambia) and two regional FSDs (FinMark Trust in Southern Africa and FSD Africa). The FSD Network specialises in a number of themes from: agricultural finance and digital financial services, capital markets development, financial market regulation and saving groups. The FSD Network has around 100 members of staff and represents over £290 million of DFID; Bill Melinda Gates Foundation; SIDA; DANIDA; Foreign Affairs, Trade and Development Canada; RNE (Netherlands) and World Bank funding. Financial inclusion helps makes sure that poor people benefit from growth processes, ensuring that no-one gets left behind Chief Economist, DFID, 2014 Africa needs to become a laboratory for innovation… in financial sector development, especially with regard to long- term finance World Bank, 2011 What is the FSD Network? FSD UGANDA (2014) FSD KENYA (2005) and FSD AFRICA (2012) FSD TANZANIA (2005) FSD MOÇAMBIQUE (2014) ENHANCING FINANCIAL INNOVATION ACCESS IN NIGERIA (2007) ACCESS TO FINANCE RWANDA (2011) FSD ZAMBIA (2013) FINMARK TRUST (2002) “”
- 5. FSD AFRICA – STRATEGIC PLAN 76 FSD AFRICA – STRATEGIC PLAN Finance for all involves interventions designed to increase access to finance in order to empower and reduce the vulnerability of the poor. Finance for growth involves interventions designed to provide capital to investment-ready sectors in order to drive inclusive economic growth. FSD network support involves interventions designed to foster collaboration, best practice sharing and harmonisation between FSDs in order to improve effectiveness and achieve value for money. Priority areas FSD Africa has three main areas of work Market facilitation FSD Africa is a market facilitation programme It identifies key market failures and addresses them by: building the capacity of, and incentivising local actors to deliver projects that achieve a long-lasting, significant impact on financial markets. 2 31 What does FSD Africa do? RETAIL PAYMENTS, INTEROPERABILITY + G2P AGRICULTURE FINANCE CREDIT MARKET DEVELOPMENT GROWTH ACTIVITIES To deliver on these areas, FSD Africa’s Strategic Plan (2013–2018) structures work into four pillars. By 2018, FSD Africa will have contributed to the development of more eff icient, robust and inclusive financial markets in sub-Saharan Africa. Specifically, FSD Africa will: Work with 20+ financial institutions to build their capacity Work with partner financial institutions to provide 2.3 million savings accounts and 700,000 credit accounts to women, rural dwellers and the poor Worked in two post- conflict countries and one Francophone country Trained 5,000 financial sector professionals through local and international partners FSD Africa’s Strategic Plan (2013–2018) FSD Africa’s Objectives CHANGE MANAGEMENT BUILDING SERVICES MARKETS REGIONAL CENTRES OF EXCELLENCE REGIONAL RESEARCH INFORMATION PRODUCTS IMPACT EVALUATION FSD NETWORK SUPPORT STAKEHOLDER CO-ORDINATION PILLAR 1 SKILLS DEVELOPMENT AND TRAINING PILLAR 4 – REGIONAL PLATFORM PILLAR 2 KNOWLEDGE AND EVIDENCE PILLAR 3 THEMATIC PROGRAMME FSD AFRICA – STRATEGIC PLAN 7
- 6. Private Sector • Microfinance institutions • Banks • Stock exchanges • Brokers • Telecommunications companies • Insurance companies • Private equity firms Public Sector • Central banks • Ministries of finance • International and national regulators • National pension funds Please find below a non-exclusive list of the types of organisations with which we work: We also work with a range of expert practitioners and thoughtleaders to support the delivery of our projects. Donor and DFIs • Department for International Development • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Gmbh • Bill Melinda Gates Foundation • Making Finance Work for Africa • The Mastercard Foundation • UNCDF FSD AFRICA – STRATEGIC PLAN 9 Who do we do it with…? Example projects WOMEN’S WORLD BANKING (WWB) USD 7.1m to WWB for work with NMB (Tanzania), Diamond Bank (Nigeria) and NBS (Malawi) to develop saving and credit products for 1m low income men and women by 2018. GIZ UGANDA USD 362k to GIZ for work with up to two Ugandan financial institutions to provide productive loans to 18k coffee farmers through a smart-phone system by 2017. LONDON STOCK EXCHANGE GROUP (LSEG) ACADEMY USD 137k to LSEG Academy to train 103 leaders, middle managers, rising stars and trainers from across Tanzania’s capital markets. CONSULT HYPERION AND KATUNI CONSULTING USD 183k for primary research in Somalia and the design of technical solutions to enhance customer due diligence and payment monitoring along the UK – Somalia remittance corridor to safeguard access to finance for up to 3.4m Somalis.
- 7. FSD Africa, Nairobi, Kenya info@fsdafrica.org @fsdafrica Designed by Soapbox, www.soapbox.co.uk Deep, efficient and inclusive financial markets that are responsive to the broader developmental needs of Africa’s economies and its people VISION MISSION To be a resource to facilitate innovation skills development and research to encourage the development of African markets that are robust and inclusive