Business
IFC Launches Partnership To Improve African Financial Services
The International Finance
Corporation
(IFC), a member of the World Bank Group, has launched a partnership worth 37.4
million dollars to increase access to financial services in sub-Saharan Africa.
A statement issued by MasterCard
Foundation, a member of IFC, stated that the partnership would help to build on
recent economic momentum and stability in many African economies.
The statement said that the project would
create new opportunities for economically disadvantaged people to expand
businesses, gain access to cost-effective financial services and manage risk.
It added that through the partnership, IFC
and the MasterCard Foundation would help microfinance banks expand more
rapidly.
The Chief Executive Officer of
MasterCardFoundation, Mr Reeta Roy, said in the statement that the partnership
would develop new products.
He said it would ensure cost effective
delivery channels, while expanding coverage in new, often hard-to-reach
locations.
Roy said that the project would also help
providers to deliver low-cost mobile financial services to low-income
customers.
“Disadvantaged people derive real benefits
from having more control over their finances and our partnership with IFC will
help bring responsible financial services to a significant number of people in
sub-Saharan Africa.
“As we scale up institutions and support
new mobile financial service opportunities, this partnership will also create
knowledge that will be invaluable in promoting greater financial inclusion,’’
Roy said.
Our correspondent learnt that at June 2011, IFC had directly
committed over 1.2 billion dollars in investments to microfinance projects
globally with more than 150 financial institutions in over 60 countries.
IFC invested early in mobile financial
services, supporting pioneers, such as WIZZIT in South Africa, and provided
advisory support to MTN in Nigeria and Airtel in Madagascar.
IFC’sportfolio includes six investments
with dedicated e-payment service providers and investments with financial
intermediaries and mobile network operators offering mobile wallets.