Introducing FSD Africa…

Presentation Outline Who are we? What do we do? Why do we do it? Who do we do it with?

But first, some definitions… 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” What is Financial Sector Development? “…emergence of a robust, efficient and equitable financial market system” Drivers/functions: Rules and regulations; human capital; infrastructure; information Stakeholders: Banking sector; Non-bank sector (MFIs, capital markets), regulators, policy-makers, development finance institutions, international development organisations M4P

Who are we…? FSD Africa created by DFID in late 2012 Regional financial inclusion and financial sector development programme Based in Nairobi, but pan sub-Saharan in scope (including non-DFID office countries) GBP 30 million DFID (PSD, ARD, DFID Nigeria and Uganda) funding until 2018 Current full-time staff of five, led by Mark Napier (mark@fsdafrica.org) About to incorporate as a CLG in Kenya, but being future proofed as a potential returnable capital vehicle for DFID

Who are we…? Member of a wider group of DFID financial inclusion and financial sector development programmes in Africa – the FSD Network Access to Finance Rwanda, EFInA in Nigeria, FinMark Trust in South(ern) Africa, FSD Kenya, FSD Tanzania, FSIP Uganda, MAFiP in Mozambique, FSD Zambia Represents a total DFID investment of GBP 140+ million, has over 85+ in-country staff FMT 2002; FSDK 2005

What do we do…? Three main areas of work: Finance for all > access to financial services > reduction in vulnerability + increased empowerment Finance for growth > provision of capital to real economy > inclusive economic growth FSD network support > collaboration, best practice sharing, harmonised approach to corporate governance and M&E > value for money for DFID

FSDA Strategic Plan (2013-2018) +2.3m savings accounts; +750k credit accounts, +5000 trained financial service professionals, +investee operating efficiencies, +capacity of local training providers, +women financial inclusion, +2 post-conflict & +1 francophone countries Pillar 2 Knowledge and evidence - £6m Pillar 1 Skills development and training - £13m Pillar 3 Thematic programmes - £4m Pillar 4 Regional platform - £4m Change management Regional research Retail payments, interoperability + G2P Building services markets Information products Agriculture finance Regional Centres of Excellence Impact evaluation Credit market development FSD network support Stakeholder co-ordination Growth activities

What do we do…? Finance for all > access to financial services > reduction in vulnerability + increased empowerment Live projects / initiatives: Women’s World Banking – USD 7.1m; NMB (Tanzania), Diamond Bank (Nigeria), NBS (Malawi); 1m access to finance; saving and credit products Fidelity Bank – USD 175k, Ghana; 5m access to finance within 5 years; operational support to pilot agent banking roll-out GIZ Uganda – USD 317k; Uganda with regional potential; MM credit to 18k coffee farmers by 2 financial institutions Consult Hyperion - USD 185k; Somalia; 3.4m; enhance last mile customer DD and oversight at last mile of UK – Somalia remittance corridor

What do we do…? Finance for growth > provision of capital to real economy > inclusive economic growth Live projects / initiatives: London Stock Exchange – USD 180k; Tanzania with regional potential; train 100 capital capital market leaders and trainers Frontier Clearing Fund – USD 8.2m; global with African TA component; promotes long-term inter-bank lending by guaranteeing local collateral National Small Business Survey – USD 148,500; Uganda with regional potential; SME finance

What do we do…? FSD network support > collaboration, best practice sharing, harmonised approach to corporate governance and M&E > value for money for DFID Live projects / initiatives: FSD Academy FSD Impact Evaluation Process FSD in a Box FSD Project Collaboration FSD Executive Coaching FSD Thematic Workshops FSD Working Groups FSDA Resourcing

Why do we do it…? Finance for all > access to financial services > poverty reduction 24% of SSA adults have access to a bank account at a formal FI Over 200 million SSA adults remain financially excluded Finance for growth > provision of capital to real economy > inclusive economic growth Lack of long-term capital to satisfy long-term investment needs of ‘frontier’ sectors Annual infrastructure investment gap USD 31 billion FSD network support > collaboration, best practice sharing, harmonised approach to corporate governance and M&E > value for money for DFID Lack of best practice sharing (operational and strategic), lack of harmonised approach to M&E, lack of HR function

e.g. Global SME Finance Facility Why do we do it…? e.g. FSD Network e.g. CDC, PIDG, FIRST e.g. Global SME Finance Facility e.g. FSD Africa

Who do we do it with…? Private Sector Public Sector Donors and DFIs Thought-leaders Practitioners MFIs Banks Stock Exchanges Brokers Telecom companies Insurance companies Private equity firms Central Banks Ministries of Finance International and national regulators National Pension Funds

Thank you