Madagascar Launches National Financial Inclusion Strategy to Boost Financial Services
Antananarivo, Madagascar - The Malagasy government has launched its National Financial Inclusion Strategy (NFIS) aimed at increasing access to financial services for the majority of the population.
Background
The NFIS is a result of lessons learned from an evaluation process that involved broad stakeholder consultation and incorporated recommendations from various studies and research. Madagascar’s financial inclusion landscape is characterized by a low usage of formal financial services, with only 29% of adults financially included.
Challenges
According to the NFIS, the majority of the population relies on informal financial services or approaches individuals in their communities for financial assistance. The strategy outlines several challenges that need to be addressed, including:
- Limited financial skills and trust in the financial sector
Solutions
To overcome these challenges, the government has committed to promoting financial education and literacy programs, as well as strengthening the regulatory framework to ensure a conducive environment for financial inclusion.
Progress
Progress has been made in recent years, with improvements observed in access and use of financial services, including:
- Increase in the number of financial institution service points
- Mobile money distribution agents
National Financial Inclusion Strategy
The NFIS is expected to contribute to the country’s economic development by increasing financial inclusion, promoting economic growth, and reducing poverty. The strategy will be implemented over the next five years, with the government working closely with stakeholders, including:
- Private sector
- Civil society organizations
- International partners
Key Highlights of the National Financial Inclusion Strategy
- Promote financial education and literacy programs to enhance financial skills among the population
- Strengthen the regulatory framework to ensure a conducive environment for financial inclusion
- Increase access to financial services through expansion of financial institution service points and mobile money distribution agents
- Enhance coordination and advocacy efforts to promote inclusive finance in Madagascar
- Support the development of microfinance institutions and banking agent models to increase financial inclusion
Impact
The National Financial Inclusion Strategy is expected to have a positive impact on the lives of millions of Malagasy people, providing them with greater access to financial services and opportunities for economic growth and development.