Madagascar’s Economic Growth Fuels Financial Inclusion Efforts
Antananarivo, Madagascar - A Growing Economy with a Focus on Financial Inclusion
As Madagascar’s economy continues to soar, with projected growth rates reaching 5% in 2018 and 4.2% in 2017, the country is also focusing on ensuring that its citizens are not left behind. The government recognizes the importance of providing access to financial services for all, and as a result, financial inclusion has become a key area of attention.
Low Rates of Financial Inclusion
According to a recent report, Madagascar has one of the lowest rates of financial inclusion in Africa, with only 18% of adults having an account at a financial institution or mobile money service. However, this number has doubled over the past three years, and efforts are underway to increase access to financial services for the remaining 41% of unbanked individuals.
Mobile Money: A Key Driver of Financial Inclusion
The report highlights the importance of mobile money in increasing financial inclusion, with around 40% of the population currently owning a mobile phone. To address the issue of affordability, solutions such as purchasing a less expensive SIM card and using cash-in-cash-out services are being explored.
The Government’s Commitment to Reducing Poverty
The government is committed to reducing poverty, which affects approximately 75% of the population. By focusing on inclusive growth, officials hope to decrease the poverty headcount from 75% in 2018 to 73% in 2020.
Quotes from Government Officials
- “Financial inclusion is critical for economic development and poverty reduction,” said a government official. “By providing access to financial services, we can empower individuals to save, invest, and grow their businesses, ultimately improving their living conditions.”
- “With projected growth rates above 5%, we are confident that our economy will continue to expand over the medium term,” said another official. “We are committed to ensuring that this growth is inclusive and benefits all Malagasy citizens.”
Challenges Remain
While challenges remain, particularly in the agricultural sector, which contracted by an average of 0.8% between 2014 and 2017, the government is optimistic about the country’s economic prospects.
Looking Ahead
As Madagascar looks to build on its recent economic successes, it is clear that financial inclusion will be a key driver of sustainable growth and poverty reduction. The report highlights the need for continued focus on financial inclusion, as well as increased investment in public services such as education, health, and infrastructure in rural areas.
Conclusion
Madagascar’s economic growth has created opportunities for financial inclusion, but there is still much work to be done. By continuing to prioritize financial inclusion and investing in public services, the country can ensure that its citizens are empowered to thrive and contribute to sustainable economic growth.