India commits $2 million as new partner in Africa Digital Financial Inclusion Facility to boost digital financial inclusion across Africa
India commits $2 million as new partner in Africa Digital Financial ... African Development Bank
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The Indian Government Contributes $2 Million to Africa Digital Financial Inclusion Facility
The Indian government has announced its commitment to support the Africa Digital Financial Inclusion Facility (ADFI) by contributing $2 million. ADFI, which is housed and managed by the African Development Bank, aims to break down barriers to the growth and adoption of digital financial solutions and promote financial inclusion in Africa.
India’s Success in Digital Public Payments System
India is globally recognized for the success of its digital public payments system, which has transformed governance, financial inclusion, and resilience for millions of people in the country. Through its collaboration with ADFI, India aims to share best practices and scale up initiatives to meet the needs of financially excluded and underserved populations in Africa.
The Challenge of Digital Financial Solutions in Africa
Despite the potential of digitization to drive sustainable development in Africa, recent data shows that nearly half of the continent’s adult population does not have access to digital financial solutions. This is particularly true for women, youth, farmers, small businesses, and rural communities.
India’s Digital Public Infrastructure Model
Manisha Sinha, Additional Secretary in the Department of Economic Affairs and Principal ADFI Governing Council Member for India, highlights the unique, affordable, inclusive, and equitable model of India’s Digital Public Infrastructure (DPI). Sinha believes that this model offers learning opportunities for the digital finance ecosystem and can contribute to digital financial inclusion across Africa.
ADFI’s Role in Financial Inclusion
ADFI aligns with the African Development Bank’s Ten-Year Strategy focus on inclusive growth and the High 5 priority to improve the quality of life for the people of Africa. The facility works to scale innovative digital financial solutions under three strategic pillars: infrastructure, policies and regulations, and product innovation. Capacity building and gender inclusion are integrated into all interventions.
Collaboration for Economic Empowerment
Solomon Quaynor, African Development Bank Vice President for the Private Sector, Infrastructure, and Industrialization, welcomes India’s support for ADFI’s role in accelerating access and usage of digital financial solutions in Africa. Quaynor looks forward to incorporating lessons from India’s digital public infrastructure success story into the bank’s initiatives for economic empowerment, resilience, and growth across the continent.
About Africa Digital Financial Inclusion Facility (ADFI)
ADFI aims to make digital financial solutions in Africa valuable, affordable, safe, and accessible by addressing systemic barriers to digital financial inclusion. The current partners of ADFI include Agence française de developpement (AFD), the Ministry of Finance of India, the Ministry for the Economy, Finance and Industrial and Digital Sovereignty of France, the Ministry of Finance of Luxembourg, the Bill and Melinda Gates Foundation, the Women Entrepreneurs Finance Initiative, and the African Development Bank, which hosts the fund. For more information, visit www.adfi.org.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance. | Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure |
| SDG 5: Gender Equality | 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources, in accordance with national laws. | Indicator 5.a.1: (a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure |
| SDG 8: Decent Work and Economic Growth | 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all. | Indicator 8.10.2: Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider |
| SDG 9: Industry, Innovation, and Infrastructure | 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets. | Indicator 9.3.1: Proportion of small-scale industries in total industry value added |
| SDG 10: Reduced Inequalities | 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status. | Indicator 10.2.1: Proportion of people living below 50 percent of median income, by sex, age group, and persons with disabilities |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 1: No Poverty
The article discusses the Indian government’s contribution to the Africa Digital Financial Inclusion Facility (ADFI) to accelerate financial inclusion in Africa. This aligns with SDG 1, which aims to ensure equal rights to economic resources and access to financial services for the poor and vulnerable.
SDG 5: Gender Equality
The article mentions that women are among the populations that do not benefit from digital financial solutions in Africa. This relates to SDG 5, which focuses on giving women equal rights to economic resources and access to financial services.
SDG 8: Decent Work and Economic Growth
The collaboration between India and ADFI aims to improve access to digital financial solutions, which aligns with SDG 8’s target of expanding access to banking and financial services for all.
SDG 9: Industry, Innovation, and Infrastructure
The article highlights the role of ADFI in scaling innovative digital financial solutions, which supports SDG 9’s objective of increasing access to financial services for small-scale enterprises.
SDG 10: Reduced Inequalities
The article mentions that certain populations, including women, youth, farmers, small businesses, and rural communities, do not benefit from digital financial solutions. This connects to SDG 10, which aims to promote social and economic inclusion for all.
2. What specific targets under those SDGs can be identified based on the article’s content?
– Target 1.4: Ensure equal rights to economic resources and access to financial services for the poor and vulnerable.
– Target 5.a: Give women equal rights to economic resources and access to financial services.
– Target 8.10: Expand access to banking, insurance, and financial services for all.
– Target 9.3: Increase access to financial services for small-scale enterprises.
– Target 10.2: Promote the social and economic inclusion of all, irrespective of age, sex, or economic status.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
– Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure.
– Indicator 5.a.1: (a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure.
– Indicator 8.10.2: Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider.
– Indicator 9.3.1: Proportion of small-scale industries in total industry value added.
– Indicator 10.2.1: Proportion of people living below 50 percent of median income, by sex, age group, and persons with disabilities.
These indicators can be used to measure progress towards the identified targets by collecting data on land tenure rights, ownership of agricultural land, access to financial accounts, contribution of small-scale industries to industry value added, and income inequality.
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including
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