AfDB launches digital fund

A NEW fund to boost digital financial inclusion in Africa has been launched by the African Development Bank (AfDB) and its partners.

The Africa Digital Financial Inclusion Facility (ADFI) is designed to aid safety and expansion of digital financial transactions in Africa.

The Fund, launched at the AfDB annual meetings in Malabo, Equatorial Guinea, is supported by the Bill & Melinda Gates Foundation, the Agence Française de Development (AFD) and the government of Luxembourg.

The AfDB said in a statement that US$100 million would be deployed in grants and US$300 million in the form of debt from ordinary capital resources by 2030.

This would scale up electronic financial services for low-income communities.

According to AfDB, this is aimed at ensuring that at least 320 million more Africans have access to digital financial services. AfDB said interventions would be aligned to four pillars, namely infrastructure, digital and interoperable payment systems, digital products and innovation; policy and regulatory reform and harmonisation.

Capacity building would also be included to help close the transaction gender gap between men and women.

AfDB president, Akinwunmi Adesina, said during the launch that the fund would overcome the obstacles to financial inclusion.

“We believe that with the right investments in innovation and smart digital growth, the obstacles to achieving financial inclusion and greater economic opportunity for all will be overcome,” Dr Adesina said.

AFD’s deputy head for Africa Sébastien Minot said the organisation welcomed the specific attention that would be given to women’s digital financial inclusion in the evaluation of the projects.

He said the fund would enhance the delivery of quality and responsible digital financial services to the underserved, a cornerstone to inclusive and sustainable financial systems.

“With ADFI, we are convinced that our joint efforts can contribute efficiently to bring down the barriers that still undermine the full potential of digital finance in Africa,” he said.