Sparta: Proposed Road Map for National Financial Inclusion Strategy
CONFIDENTIAL
Sparta: Proposed Road Map for National Financial Inclusion Strategy 28 November 2014
Country Profile
Population:
38 million people
68% live in rural areas
Low income country
Economy
High level of gender inequality
24 million adults
High inequality
Growth rate: 4.8% (2014: 5.3%) Inflation: 8% Predominantly rural, agriculture accounts for 33% of the GDP High Labor force in agriculture (71%) Productivity problem & underemployment
Low level of literacy
Health Crisis (Bat Virus)
Financial Sector
Lack of a dynamic and efficient banking sector 72% of the population without access to formal financial services 92% of the MSME without access to formal financial services
Importance of a Financial Inclusion Strategy
Definition of Financial Inclusion
“Financial Inclusion is the process of ensuring access to and usage of adequate financial products and services by all segments of the population and MSMEs in order to improve the well being and sustainable growth”
Main Goals Access
Usage
To increase the level of access to financial services through formal financial institutions
To improve the level of usage of formal financial services
By increasing the number of access points (branches, ATM and POS)
By increasing the number of accounts at formal institutions
Number of access points per 100 000 adults • 2012: 3.1 • 2019: 10
Account at a formal financial institution • 2012: • 2019:
21% 40%
Goal 1: To improve access Priority Areas
Targets
Indicators # agent banking licensed
Improving the regulatority framework to encourage innovative and low cost delivery channels and products
Regulation for agent banking
% districts with access to Financial Services through agent bankings # “basic accounts” opened
Regulation for non bank financial institutions Regulation for e-money Regulation for insurance/ microinsurance
# SCUs/MFIs licences # saving accounts through SCUs/MFIs # loans accounts through SCUs/MFIs # e-money accounts # of insurance contracts
Goal 2: To improve usage Priority Area
Targets
Indicators # teachers trained
Developing Financial education in the National School Curriculum
Improving knowledge & capabilities through financial education
# students passing through financial education curriculum in schools
# children saving accounts
Developing Financial Education Programs for adults and SMEs
# Adults trained # SMEs trained # loan accounts
Action Plan
Improving Financial Education
Improving regulatiry framework
Priority
Target Regulation for agent bankings Regulation for non bank financial institution Regulation for e-money Regulation for insurance/microinsurance Developing Financial education in the National School Curriculum Developing and Implementing Financial Education Programs for adults and SMEs
Year 2017 2018
2015 X
2016
X
X
X
X X
X X
X
X
X
X
X
X
X
2019
X
Coordination A multiple stakeholder approach comprising public and private sectors as proposed below: National Financial Inclusion Council - Secretary, Ministry of Finance - Secretary, Ministry of Agriculture - Secretary, Ministry of Education - Secretary, Ministry of Small Industries - Governor, Central Bank of Sparta (Proposed to chair)
Privat e Sector
- Chair of Banks Associations - Chair of MFIs and SUCs Associations - Chair of Development Partners - Chair of SMEs Associations
Technical Committee: Comprising seniors officers Technical Assistance: AFI & World Bank Secretariat: Central Bank of Sparta
Process
Design
Implementation
Monitoring & Evaluation
Sparta: Proposed Road Map for National Financial Inclusion Strategy 28 November 2014
Country Profile
Population:
38 million people
68% live in rural areas
Low income country
Economy
High level of gender inequality
24 million adults
High inequality
Growth rate: 4.8% (2014: 5.3%) Inflation: 8% Predominantly rural, agriculture accounts for 33% of the GDP High Labor force in agriculture (71%) Productivity problem & underemployment
Low level of literacy
Health Crisis (Bat Virus)
Financial Sector
Lack of a dynamic and efficient banking sector 72% of the population without access to formal financial services 92% of the MSME without access to formal financial services
Importance of a Financial Inclusion Strategy
Definition of Financial Inclusion
“Financial Inclusion is the process of ensuring access to and usage of adequate financial products and services by all segments of the population and MSMEs in order to improve the well being and sustainable growth”
Main Goals Access
Usage
To increase the level of access to financial services through formal financial institutions
To improve the level of usage of formal financial services
By increasing the number of access points (branches, ATM and POS)
By increasing the number of accounts at formal institutions
Number of access points per 100 000 adults • 2012: 3.1 • 2019: 10
Account at a formal financial institution • 2012: • 2019:
21% 40%
Goal 1: To improve access Priority Areas
Targets
Indicators # agent banking licensed
Improving the regulatority framework to encourage innovative and low cost delivery channels and products
Regulation for agent banking
% districts with access to Financial Services through agent bankings # “basic accounts” opened
Regulation for non bank financial institutions Regulation for e-money Regulation for insurance/ microinsurance
# SCUs/MFIs licences # saving accounts through SCUs/MFIs # loans accounts through SCUs/MFIs # e-money accounts # of insurance contracts
Goal 2: To improve usage Priority Area
Targets
Indicators # teachers trained
Developing Financial education in the National School Curriculum
Improving knowledge & capabilities through financial education
# students passing through financial education curriculum in schools
# children saving accounts
Developing Financial Education Programs for adults and SMEs
# Adults trained # SMEs trained # loan accounts
Action Plan
Improving Financial Education
Improving regulatiry framework
Priority
Target Regulation for agent bankings Regulation for non bank financial institution Regulation for e-money Regulation for insurance/microinsurance Developing Financial education in the National School Curriculum Developing and Implementing Financial Education Programs for adults and SMEs
Year 2017 2018
2015 X
2016
X
X
X
X X
X X
X
X
X
X
X
X
X
2019
X
Coordination A multiple stakeholder approach comprising public and private sectors as proposed below: National Financial Inclusion Council - Secretary, Ministry of Finance - Secretary, Ministry of Agriculture - Secretary, Ministry of Education - Secretary, Ministry of Small Industries - Governor, Central Bank of Sparta (Proposed to chair)
Privat e Sector
- Chair of Banks Associations - Chair of MFIs and SUCs Associations - Chair of Development Partners - Chair of SMEs Associations
Technical Committee: Comprising seniors officers Technical Assistance: AFI & World Bank Secretariat: Central Bank of Sparta
Process
Design
Implementation
Monitoring & Evaluation
