NAURU FINANCIAL SECTOR DEVELOPMENT PARTNERSHIP FUND YIELDS MIXED RESULTS

The Asian Development Bank has released an evaluation report on a technical assistance project aimed at improving financial literacy and capabilities in Nauru. The project, funded by the Financial Sector Development Partnership Fund, sought to increase the use of prudently regulated financial services among Nauruans.

Key Performance Indicators

15% increase in average, median, and total account balances held at Bendigo Bank by May 2021
20% increase in consumer savings and term deposit accounts

Results

While the project achieved some of its targets, it fell short of others. Notable results include:

A significant increase in consumer savings accounts (673%)
Modest growth in term deposit accounts (44%)
Average account balance increased by 146.6% to A$18,000
Median account balance decreased to A$25, indicating that 50% of account holders maintain a balance of A$25 or lower

Financial Literacy

The project aimed to improve financial literacy among Nauruans, with an output target of at least 1,000 people benefiting from financial literacy activities by May 2021. While the project achieved this target:

Only one out of three government representatives who participated in regional forums on financial inclusion was female, falling short of the target of at least 50% female representation

Factors Affecting Outcomes

The project’s outcomes were attributed to various factors, including:

The government’s strong position on two issues that affected the drafting of the financial services bill
Need for more effective coordination and communication among stakeholders involved in the project

Funding

The Asian Development Bank provided a total of $330,872.68 in funding for the project, with an estimated in-kind contribution from the Nauruan government of $50,000.

This evaluation report highlights the importance of careful planning, coordination, and monitoring to achieve successful outcomes in financial sector development projects.