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Financial Regulation in Mali: A Roadmap for Inclusive Growth

Mali’s financial sector has witnessed significant growth over the years, with mobile money increasing as a share of GDP from 21% in 2015 to 65% in 2021. However, despite this progress, challenges remain in the country’s regulatory and legal framework, limiting the adoption of digital financial services (DFS).

The Role of DFS in Financial Inclusion

According to recent insights from the World Bank, DFS played a key role in increasing financial inclusion in Sub-Saharan Africa, with individuals now able to make payments, receive remittances, access savings, credit, insurance, and investments. In Mali, mobile money accounts per 1,000 adults increased from 935 in 2020 to 1,000 in 2021, but only 38% of Malian adults received a digital payment in 2021.

Gender Gap in Financial Inclusion

Despite the growth, financial inclusion remains a challenge in Mali, particularly for women. The country’s gender gap is evident in:

  • Bank account ownership (18% for women vs. 26% for men)
  • Credit card ownership (4% vs. 9%)
  • Digital payments (14% vs. 22%)

Only 22% of Malian Fintechs are women-headed, highlighting the need for greater inclusion.

Initiatives to Promote DFS

To address these challenges, Mali has launched several initiatives aimed at promoting DFS:

  • The country’s government is committed to increasing access to financial inclusion through its National Financial Inclusion strategy.
  • Social payments delivered through an account are being implemented to support vulnerable individuals.

Improving Infrastructure and Regulatory Framework

Experts say that Mali needs to improve its financial and digital infrastructure, including:

  • Connecting its Public Treasury to the regional switch to scale digitization of government payments
  • Establishing a national platform for DFS

Additionally, Mali’s regulatory framework needs to be updated to reflect technological changes, including:

  • New guidelines enabling easier market entry for newcomers
  • Facilitating recruitment of agents to expand DFS
  • A rigorous consumer protection framework must be established.

Adapting Technology to Local Financial Habits

The country also needs to adapt technology to local financial habits, such as:

  • Digitizing informal financial services developed by Malian women

Furthermore, introducing DFS across sectors and multiplying use-cases through programs in priority areas like education, agriculture, social protection, and energy will strengthen the digital transformation.

A Clear Roadmap for DFS Adoption

As Mali looks to promote inclusive growth and recovery, it is crucial that the country addresses these challenges and implements a clear roadmap for DFS adoption. By doing so, it can leverage technology to enhance financial inclusion and support its citizens’ economic empowerment.