Mauritania Moves Towards Increased Financial Inclusion

In an effort to bridge the financial gap in Mauritania, policymakers and regulators are working towards implementing key reforms that could galvanize access to financial services for millions of people.

Bridging the Financial Gap

According to recent data, only about 20% of the population over 15 years old has a financial account, while mobile money accounts have reached just 4% of adults. The Central Bank of Mauritania (CBM) is at the forefront of these efforts, having already developed a solid financial inclusion strategy in collaboration with the Alliance for Financial Inclusion (AFI).

Key Areas of Focus

Lowering Barriers to Access

• One key area of focus is lowering Know-Your-Customer (KYC) requirements for low-risk customers to open basic mobile money accounts.
• Currently, account holders must provide a valid photo ID and proof of address, which may not be feasible for all individuals.
• Implementing tiered-KYC requirements would allow for lighter documentation for low-risk accounts, making it easier for vulnerable populations, including those in refugee camps, to access financial services.

Level Playing Field for Providers

• The CBM is also working towards creating a level playing field between banks and non-banks, such as telecommunications operators, to offer mobile money services.
• This would enable MNOs to contribute to the country’s financial inclusion efforts, potentially following the path of more mature markets like Kenya where bank accounts now outnumber mobile money accounts.

Consumer Protection

• Ensuring system stability and consumer safety is also a top priority.
• The CBM is working towards implementing robust consumer protection rules that would safeguard consumers’ moneys and data, building on existing regulations and aligning with World Bank Consumer Protection Guidelines.

Benefits for Women

These reforms would have significant benefits for Mauritanian women, who currently face a five-percentage-point gap in financial access compared to men. Improved financial inclusion would enable women to participate more fully in the economy, contributing to greater economic growth and development.

Support from the United Nations Capital Development Fund (UNCDF)

The UNCDF is working closely with the CBM to support their efforts in drafting an improved legislative and regulatory architecture that could unleash mobile money services and improve financial inclusion in Mauritania. With technical assistance and capacity-building from UNCDF, the Central Bank is well-positioned to take the lead in promoting a more inclusive and stable financial system for all Mauritanians.