Mali Struggles with Financial Inclusion Challenges Despite Progress

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Despite significant progress in increasing access to financial services, Mali still faces numerous challenges in achieving true financial inclusion.

Mobile Money Adoption: A Double-Edged Sword

According to recent insights from the World Bank, Mali’s dynamic financial sector has seen a notable increase in mobile money adoption. With 935 mobile money accounts per 1,000 adults in 2021, this growth is a positive sign. However, this growth is tempered by persisting cash dependence.

Cash Dependence: A Persistent Challenge

Only 38% of Malian adults received digital payments in 2021, compared to 79% in Kenya and 49.5% in Ghana. This suggests that there is still a long way to go before financial inclusion becomes a reality for all Malians.

Gender Gaps in Financial Services

Gender gaps also exist in Mali’s financial services, with women lagging behind men in bank account ownership, credit card ownership, and digital payments.

The Fintech Sector: A Male-Dominated Industry

The country’s Fintech sector is dominated by male-led companies, with only 22% of Fintechs being woman-headed. This lack of representation and diversity hinders the development of innovative financial solutions that cater to women’s needs.

Challenges Facing Digital Financial Services (DFS)

Despite efforts to develop DFS, Mali still faces several challenges:

Infrastructure, Regulatory, and Market-Level Challenges

Inefficient interface connection to the regional switch limits public and private stakeholders in Mali from using the payment system.
Outdated payment systems, banking, and microfinance regulations hinder DFS adoption.

Lack of Strategy for Revenue Mobilization and Government Expenses

A clear roadmap for digital payments is needed to enhance financial inclusion and DFS. Collaboration between the central bank and the telecom regulator is lacking, and there is no clear mechanism for addressing consumers’ financial complaints despite rising fraudulent incidents.

Recommendations for Accelerating DFS Adoption in Mali

To address these challenges, experts recommend:

Improving financial and digital infrastructure
Updating the regulatory and legal framework
Adapting technology to local financial habits
Introducing DFS across sectors
Multiplying use-cases

The Malian government has committed to increasing access to financial inclusion through its 2021-2026 National Financial Inclusion strategy. The Jigisemeyiri Project, supported by the World Bank, distributed cash transfers to 62,000 households suffering from food insecurity during the pandemic.

Conclusion

By addressing these challenges, Mali can increase financial inclusion and support its economic growth and development. It is essential for the Malian government and stakeholders to work together to create a more inclusive financial system that benefits all citizens.